Name, Brief Description, Specific Start Date, Route Structure, High Technical Solutions, and Aircraft
The contemporary world is dynamic, and therefore, the importance of innovations and creativity is one of the crucial factors. Numerous technological developments and inventions have been experienced in logistics, as various companies rise to meet and satisfy people’s needs. Dalsey Hillblom Lynn (DHL) is the world’s leading logistic company providing excellent supply chain and network solutions to its potential customers. It was established in 1968 by Adrian Dalsey, Larry Hillblom, and Robert Lynn (Havarangsi, 2018). The organization has managed to acquire over thirty thousand employees to offer services needed by the individuals in various locations (Havarangsi, 2018).
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The route structure of the company was developed gradually and initiated through international express delivery quality service to every family in the United States. International air express system was then invented for aircraft operation utilization. The firm is the prominent market leader and core key business partner with long-term technical solutions preventing volatility. DHL Company has observable strategic advantages and market positions that have made it stay in the industry for quite some time. However, the organization is currently experiencing competitive pressure from its rivals such as UPS, FedEx, and TNT
Strategic Advantages and Market Positions
The core strategic advantage of the company is the minimization of cost to increase the quality of service provided to customers. DHL conducts consolidation of packages worldwide, including the Hong Kong region, supplying the international market products and loads (Evangelista et al., 2017). The sales are increased, while the costs are lowered, which leads to profit maximization. The solution to minimize the overall supply chain cost benefits the employees, and in return, the customers demonstrate the satisfaction required. DHL partners, accordingly, minimize cost and maximize sales, thus promoting production.
Additionally, the company facilitates efficiency, thereby driving a high strategic advantage to the potential customers. The qualified experts at the industry borders and sectors assess the employees’ overall performance across the supply chain; therefore, the operations and activities run efficiently (Wińska & Rybicka, 2020). Such practice optimizes the opportunity of the firm to induce true business partnership among the workers. Such performance in the company increases efficiency, translating to the customer’s advantage.
The network team connection adopted by the company builds one global team to enhance market operations. DHL goods distribution occurs through road and rail transportation to over eight hundred and fifty locations portraying its market position (Evangelista et al., 2017). The firm provides the customers with hub facilities and single content window offering the best services through international expertise provision. Clients can access all DHL services at different locations, and thus, the market position always remains within their reach, leading to high global standards.
Disadvantages and Competitive Pressure
Despite the advantages mentioned above, DHL faces competitive pressure in the market as compared to other companies such as Unit Parcel Service (UPS) and FedEx. The company’s primary mode of distribution includes road and rail transportation, which frequently results in time waste and goods spoilage (Hastig & Sodhi, 2020). UPS and FedEx use airplanes to move their property, which is the fastest means to deliver items from one location to another. The enterprise sells inputs at a slower rate than the other three parties, rendering down its profit maximization and production.
In summary, DHL Company has observable strategic advantages and a favorable market position as compared to its rivals, which has enormously contributed to its stability in the industry. The critical strategic achievement is to minimize the cost to gain sales, thus fostering efficiency translating to customers’ advantage. The large number of DHL services users in the United States portrays its high positioned nature, which promotes the distribution of goods to the clients, thus satisfying their needs. However, the company faces competition from rivals due to its slow modes of transportation. The organization needs to invest in faster means of carriage to remain relevant, stable, and competitive.
Evangelista, P., Colicchia, C., & Creazza, A. (2017). Is environmental sustainability a strategic priority for logistics service providers? Journal of Environmental Management, 198, 353–362. Web.
Hastig, G. M. & Sodhi, M. S. (2020). Blockchain for supply chain traceability: Business requirements and critical success factors. Production and Operations Management, 29(4), 935-954. Web.
Wińska, M., & Rybicka, I. (2020). Climate change in the ecological policy of enterprises. UNIZA. Web.
Havarangsi, P. (2018). Management models of leadership and knowledge in agile organization: The case of DHL logistics. SSRN Electronic Journal. Web.