1.

The Corporation Description of the corporation DHL these are the first letters of the last names of the three company founders, Adrian Dalsey, Larry Hillblom and Robert Lynn. In 1969, just months after the world had marvelled at Neil Armstrong is first steps on the moon, the three partners took another small step that would have a profound impact on the way the world does business. The founders began to personally ship papers by airline from San Francisco to Honolulu, beginning customs clearance of the ships cargo before the actual arrival of the ship and dramatically reducing waiting time in the harbour. With this concept, a new industry was born: international air express, the rapid delivery of documents and shipments by airplane. DHL network continued to grow at an incredible pace. The company expanded westward from Hawaii into the Far East and Pacific Rim, then the Middle East, Africa and Europe. In 2003 the three express and logistics companies DHL Worldwide Express, Danzas and Deutsche Post Euro Express merged into one large corporation under the name DHL Express and Logistics (or simply denoted DHL). This merge was initialized by the mutual owner Deutsche Post World Net. Nowadays, the company provides its customers with both easy to use standardized products as well as innovative and tailored solutions ranging from dialog marketing to industrial supply chains. About 100,000 employees in more than 220 countries and territories form a global network focused on service, quality and sustainability. With programs in the areas of climate protection, disaster relief and education, the Group is committed to social responsibility. DHL Express generated revenue of more than 11.8 billion Euros in 2011. DHL has a range of unique services across the globe. To cover all of customers extensive service needs with the right level of focus and expertise, DHL operates under four specialized divisions: DHL Express: Offers parcel transportation services. DHL Global forwarding, Freight: national and international full-truckload and less-thantruckload services, via road, rail or intermodal transportation. DHL Supply Chain: Provide solutions from planning, sourcing, production, storage, configuration and delivery to after-sales, that work for any industry and in any environment. DHL Mail: Offers international Business Mail, B2C Parcels, Direct Marketing, and Hybrid Services.
http://www.youtube.com/watch?v=Yc1r6G3Pvaw

Corporate Strategy Mission: To be the leading player in logistics, 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. Vision: "We have to improve if we want to maintain long-term relationships with our employees, customers and shareholders. And we can improve tremendously if we systematically

address our weaknesses," Frank Appel said in describing his vision for the Group. "Our goal is to remain Die Post fr Deutschland as well as The logistics company for the world." Following the aggressive expansion phase of the recent years, the new focus will help unlock the company's potential to increase organic growth, Appel said. "We do not have to reinvent the Group. We just have to make more out of what we have." Values: DHL has a set of seven key corporate values that it strives to build within its employees. These are: To deliver excellent quality To make customers successful. To foster openness. To act according to clear priorities. To act in an entrepreneurial way. To act with integrity internally and externally. To accept social responsibilities. In March 2009 CEO Frank Appel unveiled his Strategy 2015 aimed at making the company fit for the future. The management board recognized that country-level managers would need to make hard-line decisions about: who should be the right customers in DHLs market; what product bundles would be contracted or promised to customers via the service concept; how the service components would be executed throughout the service delivery system. These three concepts represent the basics for any service operations strategy (Heskett et al. 1987, Goldstein et al. 2002, Roth and Menor 2003). A high level of strategic fit, congruence, or alignment between all three concepts usually leads to greater customer satisfaction and desirable performance. In essence, the Group Strategy 2015 provides for a two-tier structure with MAIL and DHL as well as tighter links between all DHL divisions, the latter being facilitated by the creation of an additional overarching executive committee. Other steps will be the simplification of planning processes, an even more intense focus on the shifting needs of customers and the reinforcement of Frank Appel's open leadership culture through a new incentive system that stresses performance and respectful interaction among employees. Strategy 2015 is aimed at defending the Group's strong position in the German mail market and raising profitability at DHL. In the midterm, all Corporate Divisions should generate annual organic growth of 1 to 2 percentage points above the market average.

Supply chain management

1. The concept of supply chain management: All for one and one for all: The spread of globalization has an impact on the entire supply chain. The driving forces of this trend are primarily the increasing homogenization of economic regions, rising customer requirements and new developments in information technology. To meet todays competitive demands, the supply process must be optimized across all levels of the supply chain beginning with raw-material extraction and extending to the final customer. This requires all participating companies to cooperate together. This integrated approach is called supply chain management.

2. Supply chain in term of DHL In DHL, SCM is managing flow of materials, information and assets as they progress from suppliers to installation through complete asset life cycle.

Works planning: Fail to plan and youre planning to fail. You have heard it before. They know it is a fact. That is why DHL has made project management a core discipline and key differentiator. They have designed, from the ground up, a proprietary management approach that simply works better.

Procurement: Procurement works continuously to reduce the Groups expenditures and this includes providing support to the divisions to make important investments cost-effectively. For instance, a master agreement for aircraft fuel, into which the department entered for European Air Transport, reduces annual costs by more than 1 million. Procurement also makes progress as an internal service department and supports the divisions with recycle projects. Procurement is centralised function in the Group. The heads of Global Sourcing and their 14 category managers work closely with regional procurement managers and report to the head of Corporate Procurement. This allows them to bundle the Groups worldwide requirements and still meet the local needs of the business units. Additional, DHL is greater using of procurement systems. The use of IT applications to procure goods and services more efficiently again increase in 2011, they also use e-sourcing to make their procurement processes more efficient and transparent. Suppliers: Strategic plans that support operating flow management and product development are worked out with important suppliers. These suppliers are integrate into the product development process at an early stage and can help to significantly shorten development times in the process. The code of conduct for suppliers is included in all new procurement contracts and has been added to existing long-term framework agreements. It obliges them to adhere to ethical and ecological standards. Distribution centers: DHL express has large invested in their distribution centers due to the importance of it to their operation. They have large and modern distribution hub which having state-of-the-art technology, where all DHL Express products can be consolidated and distributed. Outbase locations: To provide highest quality to customers, DHL express have a network of Service point Agents, Packstations, Paketboxes, by which DHL can reach customers just in few minutes. With this network, DHL express is available for their customers practically everywhere to send and collect parcels and small packages at any time they like. 3. A typical supply chain at DHLs express

The following video giving us a better image of how do they process their goods delivering: http://www.dp-dhl.com/en/logistics_around_us/trends/parcel_on_tour.html 4. The supply chain and Competitive advantage (Competence) The supply chain is used to manage the Business Processes as a Visionary of DHL express. Supply Chain Metrics that used at DHL usually cover 4 areas: Financial. For instance, the cost of manufacturing, warehousing, transportation Customer. This includes Order Fill Rate, Backorder Levels, On Time Delivery, Feedback of Customers. Internal Business. For instance: Adherence-To-Plan, Forecast Error. Training. Relating to all training programme that company organized to train their employees, for instance In house Training Hours

5. DHLs Supply Chain Innovation

Physical

Supply chain flows

Information

Vendor Managed Inventory

Financial One of the most important challenges facing supply chain managers is the effective control of inventory. At the core of inventory management resides a fundamental dilemma. When it comes to the timely fulfillment of customer requirements, inventory is necessary and useful. DHL has some innovations to improve their Supply chain: Partnership with a leading financial company Access to low cost capital Delay buyer purchases, free up cash tied in inventories Transitioned from Just in Case to Just in Time (JIT) inventory management Improve cash to cash cycles, reduce inventory balance sheet and increase inventory turnover Leveraged IT to provide global visibility of goods on hand and goods in transit for 350 suppliers and scores of carries

The innovations bring them many benefits: