dhl final mis perspective
TRANSCRIPT
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8/3/2019 DHL Final MIS perspective
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Background Global market leader of the international express and
logistics industry.
Founded in1969
byA
drian
Dalsey, Larry
Hillblom,
Robert Lynn in San Francisco. 2002- Purchase of Airborne Express, bridged last gap in
its US/American network.
2007- DHL Innovation Center, an R&D center, opened todevelop innovative products from the logistics trends.
2008- DHL opened the European air hub at Leipzig/HalleAirport in Germany to provide greater connectivity toglobal growth markets.
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Number of Employees: around 285,000
Number of Offices: around 6,500
Number of hubs, warehouses, terminals:more than450 Number of Aircrafts: 420
Number of Gateways: 240
Number of Vehicles: 76,200 Number of Countries & Territories: more than 220
Shipments per Year: more than 1.5 billion
Destinations Covered: 120,000
Global reach
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Business model Briefly summed up to be -linking customers
packages to their destinations.
With new technology, this business model hasnt changedmuch. They have improved efficiency, expanded the networkand reduced costs, with the help from IT.
They operate under four specialist divisions:
1. DHL Express2. Global forwarding, freight
3. Supply Chain, Corporate Information Solution
4. Mail
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1. DHL EXPRESS Global provider of international road-, air- and rail-
based courierand express services for business and
private customers. Through the three product lines- Same Day, Time
Definite and Day Definite, they offer the customers amulti-faceted product portfolio meeting all transport time
requirements.
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2. GLOBAL FORWARDING, FREIGHT
This division comprises international airand oceanfreight as well as European overland transportationservices.
This business unit stands for flexible, individualized
solutions: national and international full-container-load and less-than-container-load services - via road,rail or intermodal transportation.
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3. SUPPLY CHAIN,CORPORATE INFORMATION SOLUTIONS
The main segment of their customer base consists of
the corporate clients, that includes over 75% of theworld's largest quoted non-financial enterprises.
To its customers, DHL provides outsourcing of:
After joining forces with Exel in 2005, they can nowprovide cutting edge solutions to logistics problems.
FreightForwarding
Warehousing Distribution Transport Supply ChainManagement
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SupplyChain
Model
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4. MAIL On an international level, DHL Global Mail provides
mail and communication services with directconnections to more than 200 countries around theworld as well as offering integrated solutions forcorporate communications.
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Core Business processes1.Taking orders-Itisaprocesswhichrequiresthemtoacceptpackagesfromthecustomers.Thecustomerscanavailthisservicebygoing
directlytoanyDHLcentre,bybookingapick-upor
throughonlineexpressshipping.
2.Sending packages-Afteracceptingthecustomersorder,thenextstepistosetupascheduleforthepackagetobedeliveredaccordingtothecustomersdestinations.
3.Delivering packages-Thelaststepismakingtheactualdeliveryofthepackage.Thisstephastheleastscopeforautomationsinceinformation
systemscannotbesubstitutedforlabor.
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IT service management
Globally, they have adopted common language,
processes and tools, along with skilled people toensure that IT services are being managed effectivelyusing internationally recognized IT InfrastructureLibrary (ITIL) and ISO/IEC20000.
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IT service management- Tools offered :
PlanView
This project toolprovides visibilityof their projectactivities at aglobal level withprojectdocumentationavailable to a
global audience,promotingshared learning.
S
martView
A global web-basedinformation toolthat can provideenhancedvisibility to DHLinternal
processes suchas customerservice, reportingand analysis.
T
imeSmart
Businessforecasting andstaffproductivity toolthat visualizescost, productprofitabilityanalysis and
options aboutstore inventory,productivitymanagementand on-shelfavailability.
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IT service management
DHL Toolbar
A convenient anddirect link fromthe customers
Internet ExplorerBrowser to DHL'son-line trackingservice.
DHL ExpressSMS
Allows mobilephone users totrack the
progress of singleshipments.
DHL ExpressWAP
Allows access toDHL trackingshipment
anywhere and atany time aroundthe world.
Exels Stock Inventory Management System (SIMS) utilizes scan and
radio frequency technology (RFID) to provide full stock visibility.
The Tracking toolsoffered to their customers are:
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Main competitors
UPS- Founded in 1907 as
a messenger company inthe US, UPS has growninto a $49.7 billioncorporation. It is a
leading provider ofspecializedtransportation, logistics,capital, and e-commerceservices.
FedEx- Founded in 1971,
FedEx soon grew tobecome one of DHLsmost fierce competitorsworldwide. It is more
internationally focusedand a bigger threat toDHL in markets outsidethe US.
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Comparative Advantages
They have effectivelyutilized their informationsystem to provide supplychain management(SCM) and logisticssolutions to their clients.
This hasenabled themto capture themajority of the
corporateclients.
This in turn
has lead toeconomiesof largescaleproduction.
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Marketing strategy Systems integration
Their regional integration hubs provide the capability for any-to-any systems integration, using industry standards and tools that
interface internal, external and customer applications. They achieve global co-ordination and value creation forcustomers through:
Economies ofscale, driving
down unit costs
Reducedimplementationtimes and risk
by using provensolutions
Any-to-anyintegration
Inter-regionalcompatibility
Industry-recognizedintegration
standards
Guaranteedavailability
through high-
availabilitydesigns
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MANAGEMENT TEAM
A network of projectmanagement offices
supports theirproject managers
and teams,delivering services
such as training,mentoring,continuous
improvement,reporting and
support
They work with asmall number of
leadingapplication
partners to ensure
that all portfolioproducts meet strictrequirements
around functionalityand support
All IT products andservices are
deployed in a highavailability, robust
and scalable
environment in thecontext of rigorousservice management
and certifiedsupport procedures.
Regionalcompetency centersare responsible for
the in-houseproduct expertise
to sell, implement,support anddevelop each
product.
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DHL Bangladesh1. Started operations in Bangladesh in 1979. Its main businessconsists of carrying and delivering time sensitive documents and
parcels worldwide, to and from Bangladesh.
2. Almost all clients are corporate clients, walk in customers accountfor a small portion of the business volume. DHL is mostly used bycustomers in Bangladesh, who are willing to spend more for urgent or
important package deliveries to destinations outside the country
3. Very few or no customers in Bangladesh avail services through theDHL website and so the customers cannot take advantage of the parceltracking tools.
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Competitors in BangladeshFor internal document
mailing and parcelservices, the market ismainly dominated by
Sonar Courier orSundarban Courier .
The government basedparcel service throughthe General Post Office
(GPO) also providescheaper solutions forcustomers sendingpackages out of the
country.
Express One is areseller for DHL
and has theiroperations inBangladesh.
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Conclusion: Is DHL a digital firm?
The business model ofDHL is such that it cannotcompletely transform into
a digital firm. Someportions of their core
business processes (suchas, delivering packages)
would still have to beconducted under theprevious system. But they
have used InformationSystems to effectively
manage and maintain theirhuge network
In a global businesswhere time-
shifting and space-shifting is a
necessity, without
any IT aid, it wouldhave beenimpossible for
them to serve thelarge number of
corporate
customers.
DHL realizesthe importance
of IT to helpthem grow and
survive in thelong run.
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THANKYOU