Dhl Logistic System

Report Cover Page & Title Page American International University-Bangladesh (AIUB) REPORT ON “Logistic System of DHL” Submitted to: Dr. Ehsanul Huda Chowdhury Course Instructor Course: Marketing Research Section: A BBA Program Submitted By: “Foysal Ahmed” “ID 08-12089-3” “Marketing” Date of Submission: 26-12,2011 MARKETING RESEARCH REPORT ON “Logistic System of DHL” Letter of transmittal December 26, 2011 To Dr. Ehsanul Huda Chowdhury Course Instructor Marketing Research Section: A Subject: Letter of transmittal of the research report submission Dear Sir:

With due respect and honor I am submitting my Marketing Research Report on the topic “Logistic system of DHL” as a requirement for the course Marketing Research, section: A that I am enrolled in during Fall semester, 2011-12 in the BBA program of American International University-Bangladesh. I have tried to implement the relevant theories that I learn from different marketing courses during my practical work in DHL. I really have learned a lot & have gained valuable experience while I working in the company and collecting material to prepare this report.

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I tried my best to prepare this Marketing Research Report up to the required standard. Moreover, I tried my best to gather relevant information for preparing a complete paper on this subject. I will very grateful if you accept this initiative of mine. For further quarries regarding the study please feel free to contact me. Thanking You Yours Sincerely, Name of Student FOYSAL AHMED ID: 08-12089-3 E-mail: [email protected] com ACKNOWKEDGEMENT First I want to thank to my respective course instructor Dr.

Ehsanul Huda Chowdhury for his co-operation. Despite his busy schedule, he was always there to guide me whenever I needed help. His keen insight, advice and suggestions have helped me to improve my internship report. His guidelines have enabled me to complete the report, which is extremely important for my course requirement. I would like to thank the people of DD (Distributing Department) of DHL who helped me a lot during my Research and my special thanks to assistant manager Sohel khan (DD), GM Mr. Tazim Ahmed (Marketing and Sales department) of

DHL who gave me interviews and helped me to collect necessary information to prepare my report. I would also like to thank Ashraf Ali, executive director of the company to give me the opportunity to do a research report on DHL. At last I would like to convey my best regards to the Family of DHL. Who extended their kind assistance to carry out the study. EXECUTIVE SUMMARY This is an assigned research of the course “Marketing Research”. The purpose of conducting this research is to know about the distribution of DHL, logistic system of DHL as well as the supply chain management.

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We’ve found that as the people of our country and the system in Bangladesh is very much suitable for logistic business it can be very much profitable business for unemployed people. In our country there are some conducted research on logistic process and profitability but there are no research conducted that actually explains which factors are affecting the logistic system. So we were interested about the factors those are influencing and hampering the progress of logistic system. So this report is all about logistic system.

DHL`s international network links almost 220 countries and territories worldwide. Around 285,000 employees are dedicated to providing fast and reliable services that exceed customer’s expectations in 120,000destinations in all continents. Three companies joined the brand of DHL in 2003, to set new and better standards in the courier business the world over. These companies are; I. DHL Worldwide Express, the worldwide leader in air express II. Danzas, the worldwide leader in air and sea freight III. Deutsche Post Euro Express, European leader in parcel services.

Profile of the organization DHL is the global leader in logistics – with more highly experienced professionals at more locations in more countries than any other provider. His goal is to build strong, long-term partnerships with customers by providing world class services, across all our operations. Just months after man’s first landing on the moon in 1969, DHL begins operating the first international door-to-door express delivery service in the world. It all started out of chance in a local food store of San Francisco.

The idea came out during the meeting of two friends Mr. Adrain Dalsey and Mr. Larry Hillblom in July 1969. Dalsey was a sales person and Hillblom was a flying courier, thinking about his recent $3,000 stock market earnings for investment. “Let’s start a new company. ” was the idea that came into their minds. A real estate associate Lynn joined them, and DHL began its first courier service between the West Coast of America and Hawaii. It is on the basis of the owners’ names the name of the organization was suggested. Dalsey Hillblom Lynn ?

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DHL’s first customers were the shipping companies that required a service of early delivery of the shipping documents to reach their clients before the shipment itself, to make it easy and less time consuming. The banks that used company’s services of overnight delivery to beat the postal system and to ensure a safer transport of documents and cheques worth millions of dollars. [1] By the time passing the rapidly growing network of enthusiastic customers in the USA, DHL begins to meet demands for an international service by opening territories in the Far East and Pacific Rim.

DHL’s success provokes an envious response from rival companies and it has to fight a legal battle to stay in business. But this doesn’t stop further expansion: a separate company, DHL International Ltd. , is established to focus on meeting the ever-increasing demand for international door-to-door deliveries. [2] The start of 80s marks a focus upon reliability, control, ease of billing, and flexibility of service: qualities which DHL meets customer needs to this day. To make sure the increasing size of DHL can still be managed effectively; a team of internal global strategies is formed to co-ordinate worldwide activities. 3] After thirty years of expansion there is few new territories left for DHL to move into. Instead the company concentrates on improvement by opening new service centers, forging new business partnerships and introducing new technology. The company has its head quarters situated in Brussels, Belgium. Though it’s an American based company, still it has its head office in Europe due ownership specific reasons. [4] Around the world, the people at DHL remain committed to providing the fastest, most reliable and flexible door to door express delivery service their customers can buy.

For more than thirty years DHL has set the pace in their industry. As their customer’s needs have changed, as they have been among the first to enter new markets such as China or Eastern Europe, DHL has developed innovative logistics solutions which both support their business and help them increase the value they offer. And today that means much more than simply ensuring that time sensitive documents, packages or freight arrive safely, on time, every time. More than ever DHL works in partnership with their customers often as an integral part of their business supply chain.

Over the past three years it had invested more than US $ 1. 5 billion worldwide in their people and additional state of the art handling, distribution and information systems, transportation equipment and facilities. That investment provides their entire customer’s with access to unrivalled infrastructure for the transfer of goods at a reasonable cost. So now DHL can do even more to make express delivery easier. For some customers DHL now handle a number of critical business functions from start to finish.

For others their express logistics facilities increase efficiency quite substantially, creating benefits which can be passed to their customers. DHL aims to be acknowledged as world leader in express delivery, establishing industry standards of excellence for value and money. Nobody words harder to anticipate customer delivery needs than DHL does. Nobody understands those needs or the importance of promises made to customers better than DHL does. It’s that understanding which forms the bedrock of DHL’s customers’ continued satisfaction and their own success. So customer can be sure that if it matters to them, it matters to DHL. 5] DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and 275,000 employees’ worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting climate protection, disaster management and education. Facilities: DHL Bangladesh has an outstanding reputation in the market for providing are iable, fast and easy-to-use service. DHL offers-Highly trained and professional staff, committed to being responsive to all customers needs 1. Customer Service Agents, available round-the-clock, 365 days of the year, to serve customers whenever and wherever they need them 2. Electronic pre-clearance of shipments through Customs 3. Five international gateways providing direct-to-air networks and faster sorting of inbound and outbound shipments Vision Customers trust DHL as the preferred global express and logistics partner, leading the industry in terms of quality, profitability and market share. Mission

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DHL enhances the business of our customers by offering highest quality express and logistics solutions based on strong local expertise combined with the most extensive global network presence. Customers trust DHL as the preferred global express and logistics partner, leading the industry in terms of quality, profitability and market share Core values DHL is customer conscious and working upon the strategy of Customer is King therefore there corporate goal is to get the customer satisfaction based with providing good quality, reliability, and accepting the challenges…. I. To deliver excellent quality

II. To make our customers successful III. To foster openness IV. To act according to clear priorities V. To act in an entrepreneurial way VI. To act with integrity internally and externally VII. To accept social responsibilities Service offered by DHL 1. Co-packing We offer a comprehensive selection of manufacturing and packaging services through Power Packaging a DHL Company. By integrating manufacturing and packaging operations within their supply chains, our customers can: I. Add flexibility II. Improve service levels III. Reduce costs IV. Accelerate time to mark V. Increase asset utilization . Product Assembly Postponement, quick response and mass customization are breakthrough business strategies enabled via packaging services. Integrating packaging operations into distribution centers streamlines fulfillment reducing cost, enhancing product visibility and control, and improving speed-to-market and flexibility in the supply chain. Packaging services include: I. Postponement packaging – primary, secondary and specialty components II. Co-packing, kitting, assembly and repackaging III. Retail-ready, point-of-purchase displays IV. Lot control via variable digital and laser printing V.

Machinery system engineering – labeling, bagging, carton filling, club store packs, clamshells and printed and unprinted film over-wraps VI. Make-to-order pallets VII. Product rework/redress 3. Other Value Added Services a. Kitting/Pre-Assembling Kitting is the addition of items such as accessories and batteries to the product pack. Pre-assembling is completion of a finished product from component parts or pre-programming of products. B. Re-Working/Re-Packing Repacking for a specific customer can include repalletisation. Reworking is the modification of products to suit a local market. c. Packaging/Bundling

Packaging includes packing of products into suitable media for transportation and retail display. Bundling is the assembly of a number of pre-packaged products to make up an integrated product offering. D. QA Control Quality control ensures that product is received into and dispatched from the warehouse in a suitable condition, free from faults and defects. e. Labeling/Merchandising The application of labels either to the product or to the packaging. Merchandising can include the addition of price stickers or promotional items ready for retail display Geographical Location of DHL Express Bangladesh [pic]

Literature review DHL is the global leader in logistics – with more highly experienced professionals at more locations in more countries than any other provider. His goal is to build strong, long-term partnerships with customers by providing world class services, across all our operations. For DHL supply chain DHL supply chain management solution are focused on helping the customer take increase control of international inbound supply chain to maximize the value of international and global sourcing. DHL helps customer: i. Give visibility of the upstream supply chain, and enable earlier decision making. i. Create a more agile sully chain, better able to respond to change in consumer demand iii. Reduce lead time, inventories, and associated storage cost Customer focused solution are built up from following core service; i. Origin management, including; vendor management ;supplier collection; customer brokerage; consolidation service and value added service ii. Global forwarding ,included ;air/ocean/road/rail freight forwarding and management, Europe manage transport iii. Destination management, including: port and demurrage management ;customs brokerage de-consolidation and pre-retail service. v. Supply chain visibility and management, including: purchase order management; RFID product tracking; exception management planning and forecasting; Inventory management v. Global forwarding services are provided all major routes. Logistical services that are offered 1. Reverse Logistics 2. Services Logistics 3. Inbound to Manufacturing 4. Medical device distribution 5. Distribution to stores Management 6. Engineering Response FOR DHL: DHL uses all the modes of transportations that is 1. Airways 2. Roadways 3. Waterways 4. Rail freight DHL has its own fleet of airplanes and motor vans.

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Depending upon the final destination where the goods have to finally reach and the type of  package the customer has paid for, DHL uses the individual modes of transport or a combination of either of these or all. Once again the geographical location and how fast the goods have to be delivered are the factors for the final selection of modes of transportation. The concept of economies of scale and economies of distance are both taken into consideration in case of larger consignments where DHL provides an appropriate logistical solution which helps in reducing the overall cost for the customers

Outsourcing Projects Outsourcing involves DHL taking over and managing previous in-house logistics operations, including: 1. Distribution centers 2. Transport operations 3. Back-office functions 4. Supply chain management functions 5. After sales services Introduction of the Study Logistics is concerned with getting the products and services where they are needed and when they are desired. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging

The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible. Logistics is practiced for ages since organized activity began. Without logistics support no activity can be performed to meet defined goal. The current challenge is to perform logistics scientifically in order to optimize benefits to the organization. Logistics is a planning function of management. Logistics function is concerned with taking products and services where they are needed and when they are needed.

LOGISTICS MANAGEMENTS: Logistics management is that part of the supply chain which plans, implements and controls the efficient, effective, forward and backward (reverse) flow and storage of goods, services and information between the point of origin and the point of consumption in order to meet customers’ requirements rather to the customers¶ delight. A professional working in the field of logistics management is called a logistician. Logistics, as a business concept, evolved only in the 1950s.

This was mainly due to the increasing complexity of supplying one’s business with materials, and shipping out products in an increasingly globalize supply chain, calling for experts in the field who are called Supply Chain Logisticians. This can be defined as having the right item in the right quantity at the right time at the right place for the right price and to the right target customers (consumer);and it is the science of process having its presence in all sectors of the industry. The goal of logistics work is to manage the fruition of project life cycles, supply chains and resultant efficiencies.

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Logistics is Concerned with getting (or transmitting) the products and services where they are needed or when they are desired. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible. Rationale of the study To know Industrial sector properly

Distribution is a broad industry sector responsible for managing the flow of goods, information, and people between a point of origin and a point of consumption in order to meet the requirements of consumers. Major sub-sectors within the industry include air, rail, water, and truck transportation, urban transit and ground passenger transportation, warehousing and storage, and motor vehicle repair. Logistics involve the integration of these sub sectors, including information, transportation, and inventory, warehousing, material-handling, and packaging.

In all, Distribution contains 30 sub-sectors engaged in the movement of goods, information, and people. Nationwide, 4. 5% of firms fall into distribution, while the sector accounts for 4. 5% of employment and 4. 1% of wages. Factors contributing to industry growth include globalization and continued growth in the importation of products produced overseas Technologies such as electronic data interchange that allow better tracking of product information, and radio frequency identification that streamlines the distribution process will continue to transform the transportation, distribution, and logistics industry.

That is why distribution is very much important for industrial sector. Increase realistic knowledge Marketing research can be defined as the process of gathering recording and analyzing the data related to certain products and services. This need for market research is derived from the concept that only by understanding the needs and wants of the target audience and by effectively meeting them, which will be able to achieve the organizational goals and surpass the competition in the specific market. Thus, arises the need to collect data about the customers, competitors, and other forces in the marketplace.

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This data in turn is collected and analyzed to make relevant marketing decisions, be it in relation to setting up a business, developing a product, creating a brand or coming up with an advertising campaign. To increase of the practical knowledge about distribution it helps me for betterment. To Make Marketing Decisions Marketing research helps the marketers to make a decision about the product or service. Sometimes a marketer might believe that the new product or service is useful for the customers. However, research may show that customers do not need a product or are meeting their needs with a certain competitor product and so on.

Similarly good marketing research strives to provide options for the successful introduction of new products and services. This makes the market entry of a new product or service less risky. It makes me to decide the right place at the right time. Statement of the problem 1. Possibility of new distribution channel to grab new or more customers or the market 2. To determine the effectiveness of distribution channel 3. Possible threats the company might face in the future Scope and delimitation of the study In the organization all the developments are equally important and interrelated.

To achieve organizational goals successfully through a perfect strategic planning all the stage should be performed accurately. Here in our research we are discussing about supply chain and the logistic process of DHL. We are also analyzing its influence on organization. Every organization need well adjusted, trained and experienced people to perform its activities. Here we will talk about the importance and needs of logistics and distribution process and development process. Our focus is to know and understand that what kind of distribution channel they are applying.

We will also try to find out the impact of it on the organization. We will discuss about the logistic system and supply chain of the organization. Objective of the study Broad objectives DHL has the world’s largest express and logistics Network. Over the past decades it had turned delivering goods into a finely oiled process. . DHL has developed a reputation for consistently developing innovative solutions that streamline operations and improve control. Their in-house teams have contributed to the solutions design of some of the world’s leading brands and enabled to win key contacts.

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DHL is service based company and services are critical for competitive advantage in companies from all sectors. Superior customer service is one of the key drivers of Competitive advantage. Overall objectives • To present the General condition of the courier industry and the distributing procedures • To have a general concept on the parcel and logistics courier service. Specific objectives • To find the techniques of distribution • To find the distribution techniques of “ DHL Express Bangladesh” Limitations Every report will have some limitations. Therefore, while doing our report we have also faced few limitations which are as follows: Respondents give invalid and incorrect responses so it is difficult to measure the accuracy of the responses. Thus, it can result in quantitative estimation error due to respondent miscomprehension. ? Time constraint- this is a fact that every one face, it is always not enough to complete a certain task by feeling that enough time was not given. Though we did not fail to complete the project on time, more the time is available the better the project gets. We have to face many limitations to do the study . such as- • Sometimes they show less responsibility to discuss. • Sometimes authority don’t want to give any information They give wrong information • They don’t want to share their plan • They don’t want to express their techniques Methodology The research methodology was based on collection of data from primary and secondary sources. The primary sources were the 3PL providers, and data collection was through questionnaire surveys, telephonic interviews and personal visits. The secondary sources were books, published reports, journal articles and the Internet. The details of the questionnaire design and the process of administering the questionnaire to potential respondents are outlined below.

Sources of information: Primary: We will use the data for our research paper as we go to the company and take interview of the manager and employees and ask them relevant question about the effect of ethical code we will prepare set of question and ask them to fill it up. Secondary: We will search their web site or can sent questionnaire by e-mail and ask them to fill it up by internet. Research approach We will be based mainly on the survey in the company for our research paper. we will go to the company and ask relevant question to the manager and employees and will collect the data.

We will also research is web site of the company. Research tools Questionnaire For collecting data we will use a set of relevant question to ask the manager and employees to fill it up. The questionnaire will be in MCQ type and open ended. Mechanical tools For our report we will use computer and its software like Microsoft word, excel and the internet for browsing for information Sampling plan Sample unit We will focus on middle level worker mainly for our survey. Sample size We will take a sample size of 10 or more for our data collection process through interview. Contact method Personal interview

We will mainly base on personal interview as contact method for collecting data for our term paper. We will give the questionnaire and ask to fill it up Mail questionnaire If there are any difficulties in direct interview then we will send questionnaire by e-mail. Phone calls For more information we will also use mobile and land phone to contract with them. Analysis and Interpretation of data 1. Which company will you choose to make your good delivered? Sample Size: 14 people Age: None Sample Area: Dhaka [pic] According to survey the respondents choose 8. 2% compare to FedEx, TNT, UPS.

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There will be a huge difference from DHL to FEDEX because of the good deliver. And the rest of the parts are very unfamiliar which holds up only 1. 4% as well as 1. 2%. 2. According to you, which company provides the best service? Sample Size: 14 people Age: 19-40 Sample Area: Dhaka [pic] This was the service based questionnaire for the respondent which carries 6% service provider are from DHL out of 14 respondent. And 4% are from FedEx which is very near to DHL. The most closely respondent is TNT. Apart from it UPS carry only 1%. 3. Do you think any other new competitor should enter in the market? If no why?

Sample Size: 14 people Age: 25-40 Sample Area: Dhaka [pic] This is the most important part for DHL get the good response from the respondents. Because of the 9% no holder said that there is really do not need any competitor in this competitive market. So that DHL already capture the 70% market share out of 100%. 4. Do all the service providers meet the superior standers, quality and safety measurements while delivering the goods? Sample Size: 14 people Age: 24-40 Sample Area: Dhaka [pic] This is comparatively tricky question about the quality and standards of the service provider. There is only 4. % respondent who are strongly agree with their delivering goods. Most of the respondents are goes with 5. 5% . but there will be few respondents who are answering moderate agree with 3. 5%. Disagree had only . 5%. 5. According to you, which company do you think is the leading one as per market share? Sample Size: 14 people Age: 24-40 Sample Area: Dhaka [pic] The survey said UPS got the 2% of respondent support. FEDEX and DHL have the same percentage with 5. 5%. TNT goes up with 1% respondent. 6. Do you think DHL has proper distribution channel? Sample Size: 14 people Age: 24-40 Sample Area: Dhaka [pic]

The respondent used to confuse about the distribution channel. The outlets of DHL have only few comparatively the global market. That is why they have the mixed answer. only 8% were covered the positive part and 6% covered by the negative respondent. 7. Do you agree DHL should increase distribution channel in BD? Sample Size: 14 people Age: 24-40 Sample Area: Dhaka [pic] This survey is pretty much astonishing because of agree and strongly agree have a massive gap. The respondent with strongly agree has covered by 8. 2%. but the agree respondent had only 1. 2%. therefore moderate agree and disagree had closest value which is 1. % and 1. 2%. 8. Do you think DHL they have proper transportation to distribute their services? 9. according to you, DHL they increase their transportation system to distribute the goods? [pic] Here respondent answered of two questions in a same way about to increase Distribution channel. Thus the YES holder came up with 12%. but few of the respondent answer it negatively with 4%. Findings OTHER REASONS STATED BY RETAILER FOR BRAND PREFERENCE: DHL I. Better Service II. Good name in the market III. Timely available IV. Immediately respond on the competitor’s strategy V. Relatively less price VI. Better packaging VII. ogistic grade is good and people are satisfied Suggestions The sales people should have faith on their abilities of convincing clients besides the lowest rate offering by their company in winning businesses. i. DHL Express should take more skillful sales people to make a difference in the sector. ii. DHL Express should arrange more training sessions for their employees. iii. DHL Express should open new branches all around the country. iv. DHL Express should improve their delivery and pick up service. v. DHL management should lessen their paper work by implementing the web based network system. 1. ENHANCE THE SMART-TRUCK PROJECT

Because of the stage of recession and high competition, the companies need to make difference to have new customers and increase their market share. To invent completely new product can be very expensive and take very much time. So, making little difference on the current product or service can be better. At this time, we need to talk about innovation. As a CEO of DHL Logistics, enhancing the Smart-Truck Project is going to be my first strategy. This project will allow our company to deliver faster and cut cost by using less fuel. To achieve this goal, we will follow some steps: a. Increase the budget of R&D 10%. b. b.

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Prepare an office for a new innovation team and assign a leader to work on this project’s. c. Also pay premium for new and creative ideas whoever gives it(even juniors). So this will provide us innovative atmosphere 2. AQUIRE SMALL – SIZE LOGISTICS COMPANIES: By acquiring small local companies in different countries like China, India, USA, will give us pretense in that countries. Also, this will decrease the threat of restrictions in those companies. Even they are small companies; they can have creative solutions to different problems. So were acquiring new brains at the same time. We can get some ideas from them to improve our skills.

I mean we are not firing people who were working there actually; we are hiring them to work with us. Conclusion Logistics is one the most important and integral part of any organizations strategy and function. When the logistical processes carried out accurately then not only the company reduces the production cost but also improves the efficiency and customer satisfaction. Overall logistics management is very important for today’s highly competitive and cut- throat corporate world. DHL has the world’s largest express and logistics Network. Over the past decades it had turned delivering goods into a finely oiled process.

Be it a book, pen, WIP material, drugs, hazardous chemicals, clothes, documents, wild animals and any other thing under the sun DHL delivers it. With a network spanning 200countries and with its private fleet of airplanes, mobile vans, cargo ship carriers & even rail way automotives in some countries DHL can handle any type of goods. Not only has that with international network there come the hassle of documentationand paperwork, standard packaging and other formalities toadhere to. But DHL has its own department which looks into the international laws and other formalities.

In the end what matersis delivering good in good condition at the door step of thecustomer? A happy and satisfied customer makes the business grow. Competitors have come and gone but DHL has been able to keep its No 1 position intact. This is because of its dynamicnature and attitude of maintaining good customer relations. Logistics management is important for every organization but more so DHL. We have tried to incorporate all the facets of logistics which propel DHL to be the best delivery and carriage-service around the world. No wonder that DHL is head and shoulders above all of its competitors! Bibliography

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http://www.dhl.com/en/about_us/company_portrait.html

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http://www.dhl.com.ua/ru/country_profile/import_guidelines_express.html

https://en.wikipedia.org/wiki/Frutiger_(typeface)

http://www.dhl.co.uk/en/logistics/supply_chain_solutions/how_we_work/quality_assurance.html

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