This document provides an overview of supply chain management from DHL. It begins by defining what a logistics company is and the services they provide such as mail delivery, freight transportation, warehousing, consultancy, and value-added services. It then discusses why logistics companies are important due to factors like globalization, technology changes, and customer demands. Finally, it examines how DHL has dealt with future trends by focusing on its international express business, increasing presence in growth markets, and managing its global network costs. It also discusses DHL's people strategies around culture, code of conduct, and employee participation.

1. SUPPLY CHAIN MANAGEMENT: A S T U D Y F R O M D H L

2. OPENING THOUGHT
“Logistics is the Ball and Chain of Armored Warfare”
-Heinz Guderian-
World War II German’s General

3. Conceptual Framework
W H AT i s
Logistic
Company?
WHAT
Logistic
Compan
y
WHY is Logistic HOW does
C o m p a n y WHY HOW L o g i s t i c
Important? Company Deal
with the Future?

4. Conceptual Framework
W H AT i s
Logistic
Company?
WHAT
Logistic
Compan
y
WHY is Logistic HOW does
C o m p a n y WHY HOW L o g i s t i c
Important? Company Deal
with the Future?

5. W H AT What is Logistic Company?
L O G I S T I C C O M PA N Y
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

6. W H AT What is Logistic Company?
Mail Delivery
Freight Transportation
Services Provided
by Logistics Service
Warehousing & Distribution
Providers
Consultancy
Value Added Services

7. W H AT What is Logistic Company?
Mail Delivery
Freight Transportation
Services Provided
by Logistics Service
Warehousing & Distribution
Providers
Consultancy
Value Added Services

8. W H AT What is Logistic Company?
Direct Mail
Mail Delivery Press Shipment
(Fully modular mail services)
Business Mail
Parcel

9. W H AT What is Logistic Company?
Mail Delivery
Freight Transportation
Services Provided
by Logistics Service Warehousing & Distribution
Providers
Consultancy
Value Added Services

10. W H AT What is Logistic Company?
Air Freight Services
Freight Transportation Ocean Freight Services
Road and Railway
Services

11. W H AT What is Logistic Company?
Mail Delivery
Freight Transportation
Services Provided
by Logistics Service Warehousing & Distribution
Providers
Consultancy
Value Added Services

12. W H AT What is Logistic Company?
Temperature Controlled
Raw Materials
Warehousing and
Distribution
Finished Goods
Automated

13. W H AT What is Logistic Company?
Mail Delivery
Freight Transportation
Services Provided
by Logistics Service Warehousing & Distribution
Providers
Consultancy
Value Added Services

14. W H AT What is Logistic Company?
Consultancy Supply Chain Consultancy and Network
Design

15. W H AT What is Logistic Company?
Mail Delivery
Freight Transportation
Services Provided
by Logistics Service Warehousing & Distribution
Providers
Consultancy
Value Added Services

16. W H AT What is Logistic Company?
Product Assembly
Packing
Value Added Services
Packaging
Labeling and Tagging

17. W H AT What is Logistic Company?
FOCAL FIRM
A focal firm is “the initiator of an International business transaction,
they convince, design and produce the offerings (goods and services)
intended for consumption”

18. W H AT What is Logistic Company?
INTEL CHIP PC
WINDOWS OPERATING
SYSTEM
OTHER HARD-WARES

19. W H AT What is Logistic Company?
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

20. W H AT What is Logistic Company?
America

21. W H AT What is Logistic Company?
Asia
Pacific

22. W H AT What is Logistic Company?
Europe

23. W H AT What is Logistic Company?
EEMEA

24. W H AT What is Logistic Company?
?
? ?
7
ATTRIBUT
? ES ?
? ?

25. W H AT What is Logistic Company?
Reliable Performance

26. W H AT What is Logistic Company?
Customer Interaction

27. W H AT What is Logistic Company?
Price

28. W H AT What is Logistic Company?
Supply Chain Recovery

29. W H AT What is Logistic Company?
Professionalism

30. W H AT What is Logistic Company?
Supply Chain Innovation

31. W H AT What is Logistic Company?
Supply Chain Capacity

32. W H AT What is Logistic Company?
Reliable
Performance
Supply Chain Customer
Capacity Interaction
7
ATTRIBUT
Supply Chain ES Price
Innovation
Professionalis Supply Chain
m Recovery

33. W H AT What is Logistic Company?
Industry
Consideration
Factors
Supply
Chain
Innovation
Professionalis
m
Reliable
Performanc
e
Automotive Industry

34. W H AT What is Logistic Company?
Industry
Consideration
Factors
Supply Supply
Chain Chain
Innovation Capacity
Reliable
Performanc Price
e
Consumer Goods Industry

35. W H AT What is Logistic Company?
Industry
Consideration
Factors
Supply
Chain
Innovation
Customer
Interaction
Reliable
Performanc
e
Fashion Industry

36. W H AT What is Logistic Company?
Industry
Consideration
Factors
Professionalis
m
Supply Chain
Capacity
Reliable
Performance
Retail Industry

37. Conceptual Framework
W H AT i s
Logistic
Company?
WHAT
Logistic
Compan
y
WHY is Logistic HOW does
C o m p a n y WHY HOW L o g i s t i c
Important? Company Deal
with the Future?

38. Conceptual Framework
W H AT i s
Logistic
Company?
WHAT
Logistic
Compan
y
WHY is Logistic HOW does
C o m p a n y WHY HOW L o g i s t i c
Important? Company Deal
with the Future?

39. WHY Why is Logistic Company important?
CONTINUUM OF SCM
Creation Integratio Global Specialize SCM
Era n Era Era Era 2.0

40. WHY Why is Logistic Company important?
Quality Government
Free Trade Support for Green
Agreement Environment
Nation
Infrastructur Variety
e
Industry
13 Forces of Lowest Cost Global
Financial
Globalization Firm
Integration
Technology
Customizati
Convenienc on
e
Speed
Crude Oil
Scarcity Dilemmas and
© KC Chan 2011
Paradoxes
Customization

41. WHY Why is Logistic Company important?
Quality Government
Free Trade Support for Green
Agreement Environment
Nation
Infrastructur Variety
e
Industry
13 Forces of Lowest Cost Global
Financial
Globalization Firm
Integration
Technology
Customizati
Convenienc on
e
Crude Oil Speed
Scarcity Dilemmas and
© KC Chan 2011
Paradoxes
Customization

42. WHY Why is Logistic Company important?
People wants Innovation
Customization
CK Prahalad
Be Different

43. WHY Why is Logistic Company important?
Microelectronic Industry
Speed
Less Price
Faster Growth
www.dhl-discoverlogistic.com

44. WHY Why is Logistic Company important?
RFID Tag
Technology
WEB 2.0
SCM 3.0

45. WHY Why is Logistic Company important?
Crude Oil Scarcity

46. WHY Why is Logistic Company important?
Economic Uncertainty
Lowest Cost
Outsourcing
High Competitiveness

47. WHY Why Logistic Company important?
CONTINUUM OF SCM
Specializ
Creation
Era
Integratio
n Era
Global
Era
e
Era
SCM
2.0 ?

48. WHY Why is Logistic Company important?
Process
Standardizati
on
Future
Trends
System and
of Security
SCM
Flexible
and Responsive

49. WHY Why is Logistic Company important?
Process
System and Flexible and
Standardizatio
Security Responsive
n
• Standardized • Insurance • Rapid
work flows company respond to
• Outsource become the sudden
more low security demand
value-added factors • Creative
process • More management
automated in changing
and visible environment
transport • More
system efficient
energy
usage

50. WHY Why is Logistic Company important?
CONTINUUM OF SCM
Future
Specializ
Creation Integratio Global
e SCM Trends
Era n Era Era 2.0 of
Era
SCM

51. Conceptual Framework
W H AT i s
Logistic
Company?
WHAT
Logistic
Compan
y
WHY is Logistic HOW does
C o m p a n y WHY HOW L o g i s t i c
Important? Company Deal
with the Future?

52. Conceptual Framework
W H AT i s
Logistic
Company?
WHAT
Logistic
Compan
y
WHY Logistic HOW does
C o m p a n y i s WHY HOW L o g i s t i c
Important? Company Deal
with the Future?

53. How does Logistic Company deal with the
HOW future?
PURPOSE
To know the strategy
that can be
implemented by
logistic companies to
take advantage of
SCM future trends
Tools Process
FRAMEWORK
STRATEG
PROJECT
I N P U T
P
E
R O C
S S
O U T P
U T
Y
People
E V A L U A
T I O N

54. How does Logistic Company deal with the
HOW future?
PURPOSE
To know the strategy
that can be
implemented by
logistic companies to
take advantage of
SCM future trends
Tools Process
FRAMEWORK
STRATEG
PROJECT
INPUT
PROCE
SS
OUTPU
T
Y
People
EVALUATIO
N

55. Concept Diagram Purpose
PURPOSE
To know the strategy that can be implemented by
logistic companies to take advantage of SCM future
trends

56. How does Logistic Company deal with the
HOW future?
PURPOSE
To know the strategy
that can be
implemented by
logistic companies to
take advantage of
SCM future trends
Tools Process
FRAMEWORK
STRATEG
PROJECT
INPUT
PROCE
SS
OUTPU
T
Y
People
EVALUATIO
N

57. How does Logistic Company deal with the
HOW future?
PURPOSE
To know the strategy
that can be
implemented by
logistic companies to
take advantage of
SCM future trends
Tools Process
FRAMEWORK
STRATEG
PROJECT
I N P U T
P
E
R O C
S S
O U T P
U T
Y
People
E V A L U A
T I O N

58. Concept Diagram Project

59. 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.

60. 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.

61. Concept Diagram Project
The DHL Express Service has ceased domestic operations in the USA, as of February
2009
US International CEP Market 2007
9%
DHL
25% FedEx
49%
UPS
17% Others
Mounting Losses (High
High Competition Not Their Core Competence
Cost)

62. Concept Diagram Project
Maintaining leading position in the international
express market
Concentrating on the international express
business in the USA
Increasing presence in growth markets
W H AT D I D
Managing global network costs
DHL DO
NEXT?

63. Concept Diagram Project
Maintaining leading position in the international
express market
Concentrating on the international express
business in the USA
Increasing presence in growth markets
W H AT D I D
Managing global network costs
DHL DO
NEXT?

64. Concept Diagram Project
Maintaining leading position in the international
express market
Concentrating on the international express
business in the USA
Increasing presence in growth markets
W H AT D I D
Managing global network costs
DHL DO
NEXT?

65. Concept Diagram Project
Maintaining leading position in the international
express market
Concentrating on the international express
business in the USA
Increasing presence in growth markets
W H AT D I D
Managing global network costs
DHL DO
NEXT?

66. Concept Diagram Project
Maintaining leading position in the international
express market
Concentrating on the international express
business in the USA
Increasing presence in growth markets
W H AT D I D
Managing global network costs
DHL DO
NEXT?

67. Concept Diagram Project
STRUCTURE AND
DIVERSITY
CULTURE
CODE OF CONDUCT
INDUCTION
EMPLOYEE PARTICIPATION

68. Concept Diagram Project
People Process Tools
OBJECTIVE
GOAL Serving
stakeholders
Winning the
heart, mind, ? all over the
world with
and spirit quality
service
Structure & Culture
Diversity, Code of
Conduct, Participation, & Induction
Target
Brand Equity
Balanced Score Card
International BSC

69. How does Logistic Company deal with the
HOW future?
PURPOSE
To know the strategy
that can be
implemented by
logistic companies to
take advantage of
SCM future trends
Tools Process
FRAMEWORK
STRATEG
PROJECT
INPUT
PROCE
SS
OUTPU
T
Y
People
EVALUATIO
N

70. How does Logistic Company deal with the
HOW future?
PURPOSE
To know the strategy
that can be
implemented by
logistic companies to
take advantage of
SCM future trends
Tools Process
FRAMEWORK
STRATEG
PROJECT
INPUT
PROCE
SS
OUTPU
T
Y
People
EVALUATIO
N

71. Concept Diagram Framework
PROCES
INPUT OUTPUT
S
E VA L U AT I O
N

72. Concept Diagram Framework
The Faster
Future of HOKAM Better
SCM Cheaper
Balanced
Scorecard

73. Concept Diagram Framework - Input
PROCE OUTPU
INPUT
SS T
Process
Standardizati EVAL
on
Future
Trends
System and
of Security
SCM
Flexible
and Responsive

74. Concept Diagram Framework
PROCES
INPUT OUTPUT
S
E VA L U AT I O
N

75. Concept Diagram Framework
The Faster
Future of HOKAM Better
SCM Cheaper
Balanced
Scorecard

76. Concept Diagram Framework - Process
PROCE OUTPU
INPUT
SS T
Process EVAL
Planning
People
HOKAM

77. Concept Diagram Framework - Process
PROCE OUTPU
INPUT
SS T
Planning Collaboration with stakeholders to hedge the
future EVAL
Trend Resource Scenario
Watching Planning Study with
and Stakeholders
Forecasting

78. Concept Diagram Framework - Process
PROCE OUTPU
INPUT
SS T
Process Route planning and decarbonization path of
logistic EVAL
Efficient Effective Green
Route Vehicle Energy
Planning Utilization Source

79. Concept Diagram Framework - Process
PROCE OUTPU
INPUT
SS T
People Supply chain visibility and security
EVAL
Real-Time E- customs
Tracking
System

80. Concept Diagram Framework
The Faster
Future of HOKAM Better
SCM Cheaper
Balanced
Scorecard

81. Concept Diagram Framework - Output
PROCE OUTPU
INPUT
SS T
Collaborative EVAL
Planning Future Hedging
FA S T E R
Route Planning
Process and CHEAPER
Decarbonization
Visibility and
People Security
BETTER

82. Concept Diagram Framework
The Faster
Future of HOKAM Better
SCM Cheaper
Balanced
Scorecard

83. Concept Diagram Framework - Control
PROCE OUTPU
INPUT
SS T
Learning
and Growth
EVAL
Customer Balanced Business
Perspective Scorecard Process
Financial
Performance

84. Concept Diagram Framework - Control
Learning INPUT
PROCE
SS
OUTPU
T
and
Growth EVAL
 Language Course  Outsource Trainer  Earn & Learn
 Leadership  Scholarships Training
Training  Center Employee  Safety Training
 Learning Center Self Development
 National Training  Online Learning
Award Program
Source : trainingreference.co.uk Source : fedex.com Source : ups.com

85. Concept Diagram Framework - Control
PROCE OUTPU
INPUT
SS T
Business
Process
EVAL
Speed Performance 3/5 L o c a t i o n 1/5 L o c a t i o n 1/5 L o c a t i o n
(Source : Livescience.com)

86. Concept Diagram Framework - Control
Financial INPUT
PROCE
SS
OUTPU
T
Performan
5000 Net Income Data (in million
ce EVAL
4000 USD)
3000 DHL
2000
FedE
1000
x
0
-10002006 2007 2008 2009 2010 2011 2012
-2000
-3000
Source: Income Stateme

87. Concept Diagram Framework - Control
Customer INPUT
PROCE
SS
OUTPU
T
Perspectiv
e EVAL
Reliability Performance 90.66% 90.83% 88.02%
(Source : Unishippers.com)
After Sales Service
based on rating 1 2 1
(Source : Unishippers.com)

88. Concept Diagram Framework - Control
Awards and INPUT
PROCE
SS
OUTPU
T
Achievements EVAL

89. How does Logistic Company deal with the
HOW future?
PURPOSE
To know the strategy
that can be
implemented by
logistic companies to
take advantage of
SCM future trends
Tools Process
FRAMEWORK
STRATEG
PROJECT
INPUT
PROCES
S
OUTPUT
Y
People
EVALUA
TION

90. How does Logistic Company deal with the
HOW future?
PURPOSE
To know the strategy
that can be
implemented by
logistic companies to
take advantage of
SCM future trends
Tools Process
FRAMEWORK
STRATEG
PROJECT
INPUT
PROCES
S
OUTPUT
Y
People
EVALUA
TION

91. Concept Diagram Strategy
CEM
PEOPLE
?
PROCES PLANNIN
S G
SCM IPM

92. Concept Diagram Strategy
CEM
PEOPLE
Agile
Logisti
c
PROCES PLANNIN
S G
SCM IPM

93. Concept Diagram Strategy
AGILE LOGISTIC
A strategy that enables logistic companies
to survive in economic recession and grow during economic expansion
Reduction of
Flexibility Innovation
Complexity

94. Concept Diagram Strategy
S T R AT E G Y
AGILE LOGISTIC
PEOPLE PROCESS TOOLS
Standardizatio Strategic
Systematic Planning
n
Adaptable Scenario
Flexible Study
Creative
Innovation Partnership

95. How does Logistic Company deal with the
HOW future?
PURPOSE
To know the strategy
that can be
implemented by
logistic companies to
take advantage of
SCM future trends
Tools Process
PEOPLE
Agile
FRAMEWORK Logist
PROJECT
ic
PROCES PLANNING
PROCES
S
INPUT OUTPUT
S
People
EVALUA
TION

96. Conclusion Delta Matrix
PURPOSE PEOPLE PROCESS
SCOPE SUPPORT SCHEDULE
STRATEGY STRUCTURE SYSTEM

97. Conclusion - PURPOSE
PURPOSE PEOPLE PROCESS
PURPOSE
SCOPE SUPPORT SCHEDUL
E
STRATEGY STRUCTU SYSTEM
RE
Preparing DHL and any logistics company
to face the future trend.

98. Conclusion Delta Matrix - PEOPLE
PURPOSE PEOPLE PROCESS
PEOPLE
SCOPE SUPPORT SCHEDUL
E
STRATEGY STRUCTU SYSTEM
VISIONARY RE
S Y S T E M AT I C
FLEXIBLE
C R E AT I V E

99. Conclusion PROCESS
PURPOSE PEOPLE PROCESS
PROCESS
SCOPE SUPPORT SCHEDUL
E
STRATEGY STRUCTU SYSTEM
Strategic RE
Planning
Employee
Training
Resource
Allocation

100. Conclusion Delta Matrix - SCOPE
PURPOSE PEOPLE PROCESS
SCOPE
SCOPE SUPPORT SCHEDUL
E
STRATEGY STRUCTU SYSTEM
RE

101. Conclusion SUPPORT
PURPOSE PEOPLE PROCESS
SUPPORT
SCOPE SUPPORT SCHEDUL
Quality E
Free Trade Government
Agreement Support for Green
STRATEGY STRUCTU SYSTEM
Environment RE
Nation
Infrastructur Variety
e Industry
Lowest Cost Global
Firm Financial
Integration
Technology
Customizati
Convenienc on
e
Crude Oil Speed
Scarcity
© KC Chan 2011 Dilemmas and
Paradoxes

102. Conclusion SCHEDULE
PURPOSE PEOPLE PROCESS
SCHEDULE
SCOPE SUPPORT SCHEDUL
E
STRATEGY STRUCTU SYSTEM
LONG TERM RE
MEDIUM TERM
Expansio
n
Preparation
SHORT TERM
Reducing
Cost

103. Conclusion STRATEGY
PURPOSE PEOPLE PROCESS
STRATEGY
CE SCOPE SUPPORT SCHEDUL
E
M STRATEGY STRUCTU SYSTEM
RE
SC IPM
M

104. Conclusion STRUCTURE
STRUCTURE
PURPOSE PEOPLE PROCESS
SCOPE SUPPORT SCHEDULE
INTERNATIONAL DHL
STRATEGY STRUCTURE SYSTEM
EUROPE AMERICA ASIA AFRICA
Mail
Express
Logistic
Global Forwarding
Supply Chain
© KC Chan 2011

105. Conclusion Delta Matrix - SYSTEM
PURPOSE PEOPLE PROCESS
SYSTEM
SCOPE SUPPORT SCHEDUL
E
Learning
and STRATEGY STRUCTU SYSTEM
RE
Growth
Customer Balanced
Business
Perspectiv Scorecar
Process
e d
Financial
Performan
ce

106. Conclusion Delta Matrix
PURPOSE PEOPLE PROCESS
Strategic
Planning
Preparing DHL and any VISIONARY SYSTEMATIC
Employee
logistics company to FLEXIBLE CREATIVE
Training
face the future trend. Resource
Allocation
SCOPE SUPPORT SCHEDULE
LONG TERM
MEDIUM
TERM
SHORT
TERM
STRATEGY STRUCTURE SYSTEM
INTERNATIONAL DHL
EUROPE AMERICA ASIA AFRICA
Mail
Express
Logistic
Global Forwarding
Supply Chain

107. CONCLUSION LESSON LEARNT
People Process Tools
Standardization, Flexible & Strategic Planning, Scenario
Stakeholders all over the world Innovation Study & Partnership
OBJECTIVE
GOAL Serving
stakeholders
Winning the AGILE LOGISTIC
all over the
heart, mind, world with
and spirit quality
Structure & Culture service
Diversity, Code of
Conduct, Participation, & Induction
Target
Market Share and Brand
Equity
Balanced Score Card
International BSC

108. Closing Thought
“The line between disorder and order lies in logistics.”
-Sun Tzu-