Introduction
The main focus of this study is the third-party (3PL) logistic company known as DHL. The original objective of 3PL is to offer and combine operating, warehouse, and delivery services that may be expanded and adapted following client requirements or market circumstances (Aritonang et al., 2020). DHL is a world-leading contract logistics organization that provides global services, including express delivery, freight transport, supply chain management, e-commerce services, and mail and package dispatching. It is a German logistics company Deutsche Post subsidiary with its headquarters in Bonn. The purpose of this research is to study the assets of DHL and analyze how they are utilized in the various market segments in which they contend.
DHL Vertical Supply Chain
DHL’s core business is international express delivery, and the major modes of transportation are 2,200 flights per day with 280 dedicated aircraft, around 200 ocean freight, and 37,700 vehicles. The firm serves 220 countries with 3,200 territories and more than 590,000 employees (DHL, 2022). The organization’s total assets were approximately 63.6 billion euros in 2021 (DHL, 2022). In the Express division, they dependably and promptly deliver urgent documentation and commodities directly to the doorstep. Their main line of operation is international time-definite (TDI) deliveries. DHL offers industry-specific services to complement its TDI product.
For instance, they provide a diverse array of thermal packaging for temperature-controlled, cold storage, and frozen products as part of the Medical Express transportation service, specially designed for biomedical research and healthcare businesses. Generally, it consistently provides superior technologies and services to important customers to create robust cooperation relationships with clients (Khan et al., 2019). However, to increase profits, DHL’s key target is to concentrate on long-term customer relationships. As an international supplier, they must uphold the clients’ promises. Thus, they continuously assess their needs, for instance, through client satisfaction ratings and their incredible customer-oriented culture initiative.
In order to generate profits, DHL provides clients with diverse delivery options and affordable prices. Post and parcel Germany division services range from traditional and hybrid mails to specialized parcel delivery products. They include extra services such as certified post, payment on delivery, and insured products. DHL Global Forwarding freight division has ocean freight facilities and enjoys a long-standing partnership with the carrier. The employees can speak their native languages to facilitate easy interaction with the client (Khan et al., 2019). With the help of its data management systems, tracing and tracking technology can provide clients complete accessibility throughout the supply chain (Aritonang et al., 2020). Utilizing automated machines provides the opportunity to decrease delivery time and expense simultaneously.
In order to make things simpler for their clients and to provide value, DHL’s eCommerce solution division, through their own and partner networks, offers a domestic last-mile package delivery service, supplying to both B2C and B2B clients from a variety of industries. Their non-TDI inter-service offers global shipping options to help their clients take advantage of the robust development in inter commerce while still living up to their standards for efficiency, visibility, and quality. DHL’s supply chain division includes customized supply chain solutions and logistical services. In addition to warehouse operations and transportation, they provide value-added services, including eFulfillment and receivables management, Lead Logistics Partner (LLP), property investment Services, Delivery Logistics, and packaging solutions for major market segments (DHL, 2022). In collaboration with government agencies, they regularly examine their facilities’ operational safety, standard conformance, and service quality.
Conclusion
In order to operate the corporation, DHL Group employs the use of both financial and non-financial operational measures. The trends in these measures are contrasted to the previous year and projection information to assist in managerial decision-making. Keeping the asset cost consideration in business choices promotes resource efficiency and guarantees that their operating company is focused on sustaining value while enhancing cash flow. The business’s success is influenced by committed and motivated employees, the latest technological innovations, and operation-specific strategies such as warehousing and collaborating with other business partners.
References
Aritonang, K., Nainggolan, M., & Djunaidi, A. V. (2020). Integrated Supply Chain for a Single Vendor and Multiple Buyers and Products with Crashing Lead Time. International Journal of Technology, 11(3), 642-651.
Deutsche Post DHL Group closes 2021 with record earnings. (2022). Web.
Khan, S. A. R., & Yu, Z. (2019). Strategic supply chain management. AG: Springer International Publishing.