A study from dhl

SUPPLY CHAIN MANAGEMENT: A STUDY FROM DHL

OPENING THOUGHT

“Logistics is the Ball and Chain of Armored Warfare”

-Heinz Guderian-World War II German’s General

Conceptual Framework

Logistic Compa

ny

WHAT

HOWWHYH O W d o e s Lo g i s t i c C o m p a n y D e a l w i t h t h e Fu t u re ?

W H Y i s Lo g i s t i c

C o m p a n y I m p o r t a n t ?

W H AT i s Lo g i s t i c

C o m p a n y ?


Logistic Compa

ny

WHAT





C o m p a n y ?

WHAT What is Logistic Company?

A company specialized in assisting a firm’s process of planning, implementing, and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of meeting customer

requirements

Source: Council of Logistics Management

L O G I S T I C C O M P A N Y


Mail Delivery

Freight Transportation

Warehousing & Distribution

Consultancy

Value Added Services

Services Provided by Logistics Service

Providers


Mail Delivery



Consultancy



Providers


Mail Delivery(Fully modular mail

services)

Direct Mail

Press Shipment

Business Mail

Parcel


Mail Delivery



Consultancy



Providers



Air Freight Services

Ocean Freight Services

Road and Railway Services


Mail Delivery



Consultancy



Providers


Warehousing and Distribution

Temperature Controlled

Raw Materials

Finished Goods

Automated


Mail Delivery



Consultancy



Providers


Consultancy Supply Chain Consultancy and Network Design


Mail Delivery



Consultancy



Providers



Product Assembly

Packing

Packaging

Labeling and Tagging


A focal firm is “the initiator of an International business transaction, they convince, design and produce the offerings (goods and services)

intended for consumption”

F O C A L F I R M


INTEL CHIP PC

WINDOWS OPERATING SYSTEM

OTHER HARD-WARES


Role of Logistics Service Provider’s Services in Focal Firm’s Value Chain

Integrate Supply Chain of firm

More Time to Focus on The Core Business

Minimize the risks

Increase in Flexibility


America


AsiaPacific


Europe


EEMEA


7 ATTRIBU

TES

?

?

?

??

?

?


Reliable Performance


Customer Interaction


Price


Supply Chain Recovery


Professionalism


Supply Chain Innovation


Supply Chain Capacity


7 ATTRIBU

TES


Customer Interaction

Price

Supply Chain Recovery

Professionalism

Supply Chain Innovation



Industry Consideration

Factors

Automotive Industry

Reliable Performa

nce

Professionalism

Supply Chain

Innovation



Factors

Consumer Goods Industry

Reliable Performa

ncePrice

Supply Chain

Capacity

Supply Chain

Innovation



Factors

Fashion Industry

Reliable Performa

nce

Supply Chain

Innovation Customer

Interaction



Factors

Retail Industry


Professionalism



Logistic Compa

ny

WHAT





C o m p a n y ?


Logistic Compa

ny

WHAT





C o m p a n y ?

WHYWhy is Logistic Company

important?

Creation

Era

Integration Era

GlobalEra

Specialize Era

SCM 2.0

C O N T I N U U M O F S C M


important?

Customization

Firm

Industry

Nation

Quality

Dilemmas and Paradoxes

© KC Chan 2011

Government Support for

Green Environment

Variety

Global Financial Integratio

n

SpeedCrude Oil Scarcity

Convenience

Technology

Lowest Cost

Infrastructure

Free Trade Agreemen

t

Customization

13 Forces of

Globalization


important?

Customization

Firm

Industry

Nation

Quality


© KC Chan 2011


Convenience

Technology

Lowest Cost

Infrastructure

Free Trade Agreemen

t

Customization

13 Forces of

Globalization


Green Environment

Variety


n


important?

Customization

People wants Innovation

CK Prahalad

Be Different


important?

Speed

Microelectronic Industry

Less Price

Faster Growth

www.dhl-discoverlogistic.com


important?

Technology

RFID Tag

WEB 2.0

SCM 3.0


important?

Crude Oil Scarcity


important?

Lowest Cost

Economic Uncertainty

Outsourcing

High Competitiveness

WHY Why Logistic Company important?

Creation Era

Integration Era

GlobalEra

Specialize Era

SCM 2.0 ?



important?

Future Trends

of SCM

Process Standardization

System and Security

Flexible and Responsive


important?Process

Standardization

• Standardized work flows

• Outsource more low value-added process

System and Security

• Insurance company become the security factors

• More automated and visible transport system

Flexible and Responsive• Rapid

respond to sudden demand

• Creative management in changing environment

• More efficient energy usage


important?

Creation Era

Integration Era

GlobalEra

Specialize Era

SCM 2.0

Future

Trends of SCM



Logistic Compa

ny

WHAT





C o m p a n y ?


Logistic Compa

ny

WHAT


W H Y Lo g i s t i c C o m p a n y i s I m p o r t a n t ?


C o m p a n y ?

HOWHow does Logistic Company deal with the

future?

STRATEGY

PURPOSETo know the

strategy that can be implemented

by logistic companies to take advantage of SCM

future trends

FRAMEWORK PROJECT

Tools Process

People

I N P U T P R O CE S S

O U T PU T

E V A L U AT I O N


future?

STRATEGY

PURPOSETo know the



future trends

FRAMEWORK PROJECT

Tools Process

People

INPUT PROCESS

OUTPUT

EVALUATION

Concept Diagram Purpose

To know the strategy that can be implemented by logistic companies to take

advantage of SCM future trends

P U R P O S E


future?

STRATEGY

PURPOSETo know the



future trends

FRAMEWORK PROJECT

Tools Process

People

INPUT PROCESS

OUTPUT

EVALUATION


future?

STRATEGY

PURPOSETo know the



future trends

FRAMEWORK PROJECT

Tools Process

People

I N P U T P R O CE S S

O U T PU T

E V A L U AT I O N

Concept Diagram Project


Founded in 1969 in USA

Fully owned by Deutsche Post in 2002

Headquarter: Bonn, Germany

275,000 employees in more than 220 countries

The DHL Express Service has ceased domestic operations in the USA, as of February 2009.


Founded in 1969 in USA

Fully owned by Deutsche Post in 2002

Headquarter: Bonn, Germany

275,000 employees in more than 220 countries

The DHL Express Service has ceased domestic operations in the USA, as of February 2009.


The DHL Express Service has ceased domestic operations in the USA, as of February 2009

Mounting Losses (High Cost) High Competition Not Their Core

Competence

9%

24%

17%

49%

US International CEP Market 2007

DHL

FedEx

UPS

Others


WHAT DID DHL DO NEXT?

Maintaining leading position in the international express market

Concentrating on the international express business in the USA

Increasing presence in growth markets

Managing global network costs


























DIVERSITY

CODE OF CONDUCT

INDUCTION

EMPLOYEE PARTICIPATION

STRUCTURE AND CULTURE


GOAL

Winning the heart, mind, and

spirit

?

OBJECTIVE

Serving stakeholder

s all over the world

with quality service

People Process Tools

Structure & CultureDiversity, Code of Conduct, Participation, & Induction

Target Brand Equity

Balanced Score CardInternational BSC


future?

STRATEGY

PURPOSETo know the



future trends

FRAMEWORK PROJECT

Tools Process

People

INPUT PROCESS

OUTPUT

EVALUATION


future?

STRATEGY

PURPOSETo know the



future trends

FRAMEWORK PROJECT

Tools Process

People

INPUT PROCESS

OUTPUT

EVALUATION

Concept Diagram Framework

INPUT PROCESS

OUTPUT

E VA LU AT I ON


The Future of

SCMHOKAM

FasterBetter

Cheaper

B a l a n c e d S c o re c a rd

Concept Diagram Framework - Input

INPUT PROCESS

OUTPUT

EVAL

Future Trends

of SCM

Process Standardization

System and Security

Flexible and Responsive


INPUT PROCESS

OUTPUT

E VA LU AT I ON


The Future of

SCMHOKAM

FasterBetter

Cheaper


Concept Diagram Framework - Process

INPUT PROCESS

OUTPUT

EVAL

HOKAM

People

Planning

Process


INPUT PROCESS

OUTPUT

EVAL

Trend Watching and

Forecasting

Resource

Planning

Scenario Study with

Stakeholders

Planning Collaboration with stakeholders to hedge the future


INPUT PROCESS

OUTPUT

EVAL

Process

Efficient Route

Planning

Effective Vehicle

Utilization

Green Energy Source

Route planning and decarbonization path of logistic


INPUT PROCESS

OUTPUT

EVAL

People

Real-Time Tracking System

E- customs

Supply chain visibility and security


The Future of

SCMHOKAM

FasterBetter

Cheaper


Concept Diagram Framework - Output

INPUT PROCESS

OUTPUT

EVAL

Planning

Process

People

Collaborative Future Hedging

Route Planning and

Decarbonization

Visibility and Security

FA S T E R

C H E A P E R

B E TT E R


The Future of

SCMHOKAM

FasterBetter

Cheaper


Concept Diagram Framework - Control

INPUT PROCESS

OUTPUT

EVAL

Balanced Scorecard


INPUT PROCESS

OUTPUT

EVAL

Learning and

Growth

Language Course

Leadership Training

Learning Center National

Training Award

Outsource Trainer

Scholarships Center

Employee Self Development

Online Learning Program

Earn & Learn Training

Safety Training

Source : trainingreference.co.uk Source : fedex.com Source : ups.com


INPUT PROCESS

OUTPUT

EVAL

Business Process

Speed Performance(Source : Livescience.com)

3/5 Loca t ion 1/5 Loca t ion1/5 Loca t ion


INPUT PROCESS

OUTPUT

EVAL

2006 2008 2010 2012

-3000

-2000

-1000

0

1000

2000

3000

4000

5000

DHLFedEx

Net Income Data (in million USD)

FinancialPerforma

nce

Source: Income Statement


INPUT PROCESS

OUTPUT

EVAL

Customer Perspecti

ve

Reliability Performance(Source : Unishippers.com)

90 .66% 90.83% 88.02%

After Sales Servicebased on rating(Source : Unishippers.com)

1 2 1


INPUT PROCESS

OUTPUT

EVAL

Awards and Achievements


future?

STRATEGY

PURPOSETo know the



future trends

FRAMEWORK PROJECT

Tools Process

People

INPUT PROCESS

OUTPUT

EVALUATION


future?

STRATEGY

PURPOSETo know the



future trends

FRAMEWORK PROJECT

Tools Process

People

INPUT PROCESS

OUTPUT

EVALUATION

Concept Diagram Strategy

PEOPLE

PROCESS

?PLANNING

CEM

SCM IPM


PEOPLE

PROCESS

Agile

Logistic

PLANNING

CEM

SCM IPM


A strategy that enables logistic companies to survive in economic recession and grow during economic expansion

A G I L E L O G I S T I C

Reduction of Complexity

Flexibility Innovation


Systematic

Adaptable

Creative

Standardization

Flexible

Innovation

Strategic Planning

Scenario Study

Partnership

PEOPLE PROCESS TOOLS

S T R AT E GY

A G I L E L O G I S T I C


future?

PURPOSETo know the



future trends

FRAMEWORK PROJECT

Tools Process

People

INPUT PROCESS

OUTPUT

EVALUATION

PEOPLE

PROCESS

Agile Logistic

PLANNING

Conclusion Delta Matrix

PEOPLEPURPOSE PROCESS

SCHEDULE

SYSTEM

SUPPORT

STRUCTURE

SCOPE

STRATEGY

Conclusion

Delta Matrix - PURPOSE


SCHEDULE

SYSTEM

SUPPORT

STRUCTURE

SCOPE

STRATEGY

PURPOSE

Preparing DHL and any logistics company to face the future trend.

Conclusion Delta Matrix - PEOPLE


SCHEDULE

SYSTEM

SUPPORT

STRUCTURE

SCOPE

STRATEGY

PEOPLE

VISIONARYSYSTEMATI

C

FLEXIBLE CREATIVE

Conclusion

Delta Matrix - PROCESS


SCHEDULE

SYSTEM

SUPPORT

STRUCTURE

SCOPE

STRATEGY

PROCESS

Strategic Planning

Employee Training

Resource Allocation

Conclusion Delta Matrix - SCOPE


SCHEDULE

SYSTEM

SUPPORT

STRUCTURE

SCOPE

STRATEGY

SCOPE

Conclusion

Delta Matrix - SUPPORT

Firm

Industry

Nation

Quality


© KC Chan 2011


Convenience

Technology

Lowest Cost

Infrastructure

Free Trade Agreemen

t

Customization


Green Environment

Variety


n


SCHEDULE

SYSTEM

SUPPORT

STRUCTURE

SCOPE

STRATEGY

SUPPORT

Conclusion

Delta Matrix - SCHEDULE

Reducing Cost

Preparation

Expansion

SHORT TERM

MEDIUM TERM

LONG TERM


SCHEDULE

SYSTEM

SUPPORT

STRUCTURE

SCOPE

STRATEGY

SCHEDULE

Conclusion

Delta Matrix - STRATEGY

PEOPLE

PROCESS

Agile Logis

ticPLANNI

NG

CEM

SCM

IPM


SCHEDULE

SYSTEM

SUPPORT

STRUCTURE

SCOPE

STRATEGY

STRATEGY

ConclusionDelta Matrix -

STRUCTURE


SCHEDULE

SYSTEM

SUPPORT

STRUCTURE

SCOPE

STRATEGY

STRUCTURE

Mail

Express

Logistic

Global Forwarding

Supply Chain

EUROPE AMERICA ASIA AFRICA

INTERNATIONAL DHL

© KC Chan 2011

Conclusion Delta Matrix - SYSTEM


SCHEDULE

SYSTEM

SUPPORT

STRUCTURE

SCOPE

STRATEGY

SYSTEM

Balanced

Scorecard

Learning and

Growth

Business Process

FinancialPerforma

nce

Customer

Perspective

Conclusion Delta MatrixPEOPLEPURPOSE PROCESS

SCHEDULE

SYSTEM

SUPPORT

STRUCTURE

SCOPE

STRATEGY

Preparing DHL and any logistics

company to face the future trend.

VISIONARYSYSTEMATI

C

FLEXIBLE CREATIVE

Mail

Express

Logistic

Global Forwarding

Supply Chain

EUROPE AMERICA ASIA AFRICA

INTERNATIONAL DHL

Reducing Cost

Preparation

Expansion

SHORT TERM

MEDIUM TERM

LONG TERM

Strategic Planning

Employee Training

Resource Allocation

CONCLUSION LESSON LEARNT

GOAL

Winning the heart, mind, and

spirit

A G I L E LO G I S T I C

OBJECTIVE

Serving stakeholder

s all over the world

with quality service

People

Stakeholders all over the world

ProcessStandardization, Flexible &

Innovation

ToolsStrategic Planning, Scenario

Study & Partnership

Target

Market Share and Brand Equity

Balanced Score CardInternational BSC

Structure & CultureDiversity, Code of Conduct, Participation, & Induction

Closing Thought

“The line between disorder and order lies in logistics.”

-Sun Tzu-

Date post:	20-Jun-2015
Category:	Business
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