DHL

FIRST SEMESTER A221 2021/2022
BPMG3133 WAREHOUSE MANAGEMENT (A)

INDIVIDUAL ASSIGNMENT:
DHL COMPANY

PREPARED TO:
DR. FARIZA BT AHMAD MAHYADIN@MAHIDIN

PREPARED BY:
ONG WEI SHAN (278965)

Contents

1.0 BACKGROUND OF COMPANY................................................................................................1
2.0 WAREHOUSE PROFILLING ACTIVITIES ............................................................................1

2.1 Receiving ................................................................................................................................2
2.2 Put-Away................................................................................................................................3
2.3 Storage....................................................................................................................................3
2.4 Value Added Activities..........................................................................................................5

2.4.1 Cross-docking ..................................................................................................................5
2.4.2 Repackaging.....................................................................................................................6
2.5 Picking ....................................................................................................................................6
2.6 Packing ...................................................................................................................................8
2.7 Shipping .................................................................................................................................9
3.0 OTHER MATERIAL HANDLING EQUIPMENT .................................................................10
4.0 CONCLUSION ............................................................................................................................10
REFRENCES .....................................................................................................................................11

1.0 BACKGROUND OF COMPANY

According to the DHL Express website, Adrian Dalsey, Larry Hillblom, and Robert Lynn
founded DHL in 1969 in San Francisco, California, having little notion that it would grow into one of
the largest logistics organisations in the world by the present day. In addition, DHL, a division of the
German logistics firm Deutsche Post, is a package delivery, courier service, and international express
corporation that offers air and ocean freight transportation. The Greven DHL logistics centre is now
capable of sorting up to 45,000 packages per hour. A 2.7 square metre celliform SORTER with a 3,500
parcel per hour sorting capability has been in use at this site from August 2020. DHL delivered over
1.6 billion shipments yearly. DHL started in San Francisco, California, USA, in 1969, and by the end
of the 1970s, it had greatly extended its operations.

As we all know, a leader of an organisation utilises their vision and mission to describe the reasons for
and objectives of the business. When stated and succinctly presented, this may excite their whole
organisation or team with the inspiring vision of the future. Therefore, just like DHL does, any business
or organisation should update its vision and purpose to guide it along the right route. DHL's purpose
is comprised on the following four key components, while its aim is to become a global logistics
business and a post office for Germany:

1. We increase the success of our clients, personnel, and investors.

2. We consistently demonstrate respect while getting good marks.

3. We make it easier and more convenient for our clients' life.

4. Make an effort to improve the world.

In 1979, DHL opened a branch of DHL Air Cargo in the Hawaiian Islands. A DC-3 and four
DC-6 aircraft are used in the inter-island freight service provided by DHL Air Cargo. Adrian Dalsey
and Larry Hillblom personally oversaw daily operations to assure DHL Air Cargo's continuity in the
Hawaiian Islands up to the company's 1983 bankruptcy. At its busiest, DHL Air Cargo employed
around 100 people on Hawaiian Island, including pilots and the management division. Deutsche Post
began to acquire DHL stock in 1998. It had taken over the business in 2001 and, by the end of 2002,
had acquired every share of DHL that was still outstanding. After then, DHL was incorporated into the
Express division of Deutsche Post, and the DHL brand's services were subsequently extended to other
divisions, subsidiaries, and business units of Deutsche Post. Under the DHL brand, DHL Supply Chain
and DHL Global Forwarding are business divisions that fall under DHL Express. In the annual report
of Deutsche Post AG, the financial performance of DHL Express are shown. This company's revenue
increased by 2.7% to €14 billion in 2016. EBIT (earnings before taxes and interest) increased to €1.5
billion in 2016 by 11.3%.

2.0 WAREHOUSE PROFILLING ACTIVITIES
When considering the total cost of goods moved, a warehouse typically comes in at the top

because of the space, labour, and technology needed to run the operation. Given the importance of

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both expenses and services, effective planning and administration are required. Twenty-five to thirty
percent of logistics expenditures are attributable to warehousing, in addition to the twenty-five to thirty
percent attributable to inventory. Goods receiving cannot be predicted due to variable arriving times,
making the fundamental warehousing operation of inbound activities (receiving, putting away, storing)
and outbound activities (picking, packing, dispatching) much more complex in practise than it first
appears (Hompel & Schmidt 2007). In addition to storing goods, warehouses may also serve as hubs
for other operations, including as consolidation, cross-dock, sorting, assembling, trans-shipment, and
returned-item processing. It is not uncommon for a warehouse to double as a distribution hub, in which
case it would be referred to as a logistics hub (Rushton et al. 2017).

2.1 Receiving
Among the many important steps in the DHL’s warehouse's workflow, the first basic is

receiving. Receiving often entails physically removing the products from the carrier, comparing
the delivered items to the purchase orders, and entering the arriving items into the system (Rushton
et al., 2017). It is important to ensure the accurate stock counts for sales prediction, prevent
overstocking or understocking and provide an efficient inventory storage system in order to carry
out the receiving process effectively before next step. The way you keep, handle, and monitor your
items, for instance, may all be impacted by an efficient receiving procedure. It allows you to reduce
shipping expenses and improve transit times all while maintaining low inventory costs. DHL
receives merchandise from a variety of suppliers at its warehouse. The products receiving
procedure includes accept the items from outside transportation, compare the goods to an order
and the bill of lading, verify the amounts received, examine the products for defects, if necessary,
complete damage reports and inspect the goods.

According to the general manager in DHL supply chain UK in 2020, they are now under
time pressure and time constraints for container unloading at site because of the manual container
unloading with co-operator standing inside the container to pick, identify item and putting them on
a telescopic conveyor. Hence, it is quite labor intensive. DHL later then came up with a solution
of Copal container unloading automation with the DHL innovation center. The Copal Handling
solution is particularly innovative in that it allows a user to engage with the machine using a set of
controls that are similar to those found on other materials handling machinery. The robotic device
is then able to utilise its onboard vision to carry out the majority of the de-stuffing independently
using the operators' inputs and feedback. The operator needs to calibrate the machine with pushing
the button and the machine can unloads items cycle per cycle where it can pick up five items at a
time compare to human speed (Copal, 2019).

Figure 2: Copal handling systems (assisted robotic unloading) received items from container and
pass to the receiving counter.

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2.2 Put-Away
At this stage, the goods are categorized and put away. In other words, after delivery in the

goods receiving area, the goods are either picked up manually or automatically transported to the
warehouse via conveyor technology. It is important because it improves the picking process and
optimizes the warehouse layout. It can stop disorganised inventory control that might limit
warehouse workers' freedom of movement and efficient picking and packaging. Besides, it can
ensure accurate inventory management. Additionally, it lessens the likelihood of missing or
misplacing an item (Ramesh, 2011). Some storage types often have a preliminary zone from where
the goods are received and put away. If the warehouses are operated automatically, then put away
and material withdrawal are carried out using automatic storage and retrieval machines. Of the
goods to be put away, information such as type of goods, article number, quantity and weight is
registered. Digital recording via RFID or barcodes is often used to identify the goods. The data is
usually recorded using sensors or scanners. The data is usually collected using sensors or scanners.

DHL applies different types of put away methods. Firstly, is based on purchase order. This
technique of storage begins by examining the purchase orders and assembling all the things that
are kept close to one another, regardless of how many suppliers they purchase from. They can put
them away together in one trip if they group them at the beginning of the procedure. Due to the
fact that they will have to examine each item in order to group the like ones, putting away according
to buy order makes it simple to filter out any errors or wrong products. When DHL warehouses
assign space for their items depending on their SKU (Stock Keeping Unit). Characteristics
including an item's brand, manufacturer, colour, size, and style define its SKU. This method is
where they put away items that have similar SKUs, near each other. The warehouse uses stock
keeping units (SKUs) to categorize and track goods. Products are organized and stored. The goal
of improving the put away process is to swiftly and accurately transport stored products to the best
possible place (De Silva & Liyanage, 2019). Slotting and space management systems, for example,
use algorithms to automatically allocate the best available storage locations to each shipment,
streamlining the put away procedure and making better use of available storage. Further, put away
software and hardware aids clerks in putting away goods in the proper spot.

Figure 3: Workers using SKUs to put away the products in each storage zone to differentiate type of items.

2.3 Storage
Storage is the warehousing operation in which goods are stored in the optimal storage location

after put away. Proper storage methods allow DHL to make the most of its warehouse's square
footage and streamline its operations.

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DHL mostly used selective racking system. It is a type of heavy-duty rack and designed
products through pallets. Goods are moved, loaded and loaded by forklifts. This system is
commonly used in many industries and can withstand harsh storage conditions such as cold storage
with a temperature of -600C. For example, DHL opened a pharmaceutical facility in Dublin
recently. It is a temperature-controlled facility which is divided into different storage
environments. Selective rack can store a variety of goods with different specifications and sizes.
Its design is flexible and can be changed according to products, so your warehouse’s storage
capacity is significantly improved. Forklifts can directly access to individual pallets you need to
take. This makes the transporting process fast and convenient. Inventory management is also
simple. Selective rack’s investment costs are lower than other systems. Because this racking is
suitable for most types of forklifts, businesses do not need to spend a lot of money on loading and
unloading system.

Without significantly altering the warehouse infrastructure, autonomous forklifts take over the

picking, putting away, and restocking of full pallets in warehouses, decreasing the need for human

pallet transfers. These forklifts are capable of

handling all types of pallets, stillages, and other

unit load storage equipment and can readily reach

DHL's tallest warehouse racks at heights of more

than 10 metres. The robotic units can safely

manoeuvre alongside warehouse workers and

conventional material-handling tools while moving

10 to 15 pallets per hour and achieving 65% of

human productivity in their presently deployed

configurations. Such human-robot cooperative

work may be particularly beneficial in markets Figure 4: DHL accelerates commercial
experiencing growing or highly fluctuating deployment of its fleet of autonomous forklifts
logistical operations, as well as in areas that are and pallet movers.
momentarily experiencing a scarcity of trained

people.

DHL also manages storage in its warehouses using a computerised system that tracks their
whereabouts and maintains track of inventory levels (Demir et al., 2020). Because of this system,
DHL is able to keep track of what goods are in stock as well as the whereabouts of those things.
By using this data, businesses can fulfil customer orders and plan ahead for future inventory needs.
DHL will be able to swiftly and effectively find things in its inventory with the use of this
technology, which will enable for the items to be correctly packed and delivered to clients in a
timely manner. Besides, unmanned aerial vehicles (UAVs) / drones are used for security and
surveillance of the warehouse. It can be used for patrolling warehouse interiors and exteriors on 24
hours every day because they slash patrol timeframes from hours to minutes. Additionally, this
type of drones is also used for inventory and asset management. It uses optical sensors to identify
product location, check inventory, and feed that data to the warehouse management system.

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2.4 Value Added Activities
The extra services that a warehouse or third-party logistics (3PL) provider may give to their

customers in addition to the regular shipping and storing services are known as warehouse value-
added services. These services may be tailored to the requirements of the customer and might range
from product reworking and repackaging to material screening and postponement services. It is
significant because it has the potential to boost warehouse productivity. This may result in lower
expenses and more profitability. Value-added services allow organisations to free up time to
concentrate on growth. This may result in more sales and expansion. It also ensures the storage
needs will be taken care of. DHL’s value-added services include a wide range of activities. They
cover the complete value generating process with their services. Some of DHL’s value-added
services are delineated below.

2.4.1 Cross-docking
According to Fernandes (2018), cross-docking is a kind of operation in which items are

received and dispatched without first putting them away into storage. In this way,
overpopulation problems in a warehouse may be avoided. In simple terms, inbound products
arrive through transportation such as trucks/trailers, and are allocated to a receiving dock on
one side of the ‘cross dock’ terminal. Once the inbound transportation has been docked its
products can be moved either directly or indirectly to the outbound destinations; they can be
unloaded, sorted and screened to identify their end destinations. After being sorted, products
are moved to the other end of the ‘cross dock’ terminal via a forklift, conveyor belt, pallet truck
or another means of transportation to their destined outbound dock. When the outbound
transportation has been loaded, the products can then make their way to customers. It is
important to make available a centralised location where items can be sorted and grouped
together before being shipped to multiple locations simultaneously. It's possible to use the term
"hub and spoke" to describe this procedure. Besides, it can reduce transportation costs by
consolidating numerous, smaller product loads into a single transport mode. We call these
arrangements "consolidation" for short. Furthermore, it can reduce the bulk of your shipment
by splitting it up into multiple smaller loads before transporting it. The term "deconsolidation
arrangements" is used to describe this procedure. Goetschalckx et al. (2002) stressed the fact
that modular flow design is highly suited for large-scale activities as well as structures that
have been specifically developed. Because of this, warehouses that choose for this structure are
often separated into numerous parts in order to accommodate the requirements of a variety of
goods and processes. A modular design layout is a useful strategy for grocery distributors since
it enables the things to be broken up into distinct parts, which prevents the items from becoming
mixed up when they are being moved from receiving to shipping.

Figure 6: Comparison of cross docking and traditional warehousing process.

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2.4.2 Repackaging
Repackaging is a sort of value-added service that is performed anytime there is a need

to make modifications or adjustments to a product's configuration (Ahaiwe & Nwadigoha,
2021). There are hidden expenses associated with warehouse repackaging services that go
beyond the price of an employee's time. If you have problems with damaged packaging at your
warehouses on a regular basis, you should put money into quality control and examination to
make sure no flawed goods reach customers. Indirect labour includes managing your
warehouse's resources, such as the need for warehouse repackaging services that arises when
fewer people are working in a distribution centre. Traditionally, repacking has been done by
hand by a specialised division called manual repack, which converts bulky industrial packaging
into consumer-friendly retail packaging. Automated facilities repack items imported from
overseas or packaged by industrial manufacturers before sending. Common steps in repacking
existing stock are:

a) Business decides what materials need repackaging. This list is given to Inventory
Manager's team so they can sort and treat these items differently.

b) Repacking materials are taken from warehouse to designated zones.
c) Packaging materials have been identified and sized, e.g. 60x60-inch box holds four 15x15-

inch materials.
d) These packaging materials are stored on specific pallets or units.
e) Pallets are stored in storage bins after repacking.

2.5 Picking
Picking is the procedure that occurs at the DHL warehouse to collect items that are stored there

in order to fulfill client orders. Since it is the costliest operation in the warehouse, improving this
process will enable the company to considerably save expenses while also increasing the efficiency
of their warehouse. Because mistakes may have a direct effect on the level of happiness
experienced by DHL’s customers, streamlining this process should also concentrate on improving
its level of accuracy. The use of the appropriate technology is one strategy that may be utilized to
improve the selection process.

The distribution facility of global logistics

powerhouse DHL Supply Chain will soon

be outfitted with 6 River Systems' piece-

picking assistance robots. Warehouse

workers benefit from collaborative robots

because they reduce workload, boost

output, and shorten the learning curve for

new hires. In the same breath, they allow

for even more precise order-picking from

Figure 7: Piece picking assistance robots DHL. online stores. Building a fleet of robots
that can be quickly and flexibly

transported between specific warehouses at peak periods. Collaborative robots help DHL

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employees fill client retail stores and prepare shipments for client's online store with tiny, single-
item purchases, including shoe boxes or fashion accessories like handbags, belts, or socks. The
solution's brain is an advanced control system that uses information from the warehouse
management system to direct the operator through the picking process autonomously.
Simultaneously, the computerized system optimizes the route and gives the worker directions on
where to take each item, whose bar code he scans on a tablet. The robot is equipped with a label
printer, which speeds up the time it takes to print and apply price tags to products. DHL Supply
Chain is integrating 6 River Systems robots and mobile printers worldwide for the first time. One
by one, the commodities are put into the storage space of the robot, which then transfers the whole
cargo to the unloading spot. Thereafter, the commodities are sent to be packaged, and the robot
returns to its original location.

Furthermore, Locus robotics & assisted picking also has been introduced into DHL warehouse
in 2022 (Deutsche Post DHL Group, 2022). There are more than 500 DHL robots are currently in
use at our warehouses in the US, Europe, and the UK currently. This robotic picking can increase
the number of items picked per hour by up to 180%. With automated warehouse robots rolling up
and down the aisles, our people spend less time walking long distances and pushing heavy carts
and instead focus on value-adding work that calls for human intelligence. The robots are also
equipped with obstacle-detection sensors to prevent occupational hazards. LocusServer’s turnkey,
lightweight software is designed to easily connect with any warehouse management or warehouse
control system. There’s no complex coding, setup, or maintenance required. The LocusServer
integrates seamlessly with your existing infrastructure and workflow without disrupting or idling
your operation. It’s highly scalable, making it easy to staff for peak periods and respond to sudden
volume increases simply by adding more LocusBots (Locus Robotics, 2022).

Figure 8: Locus robotics and assisted picking automation process in DHL.

According to DHL (2019), DHL has successfully carried out a pilot project testing smart
glasses in a warehouse in the Netherlands as a first step in their Augmented Reality journey. In
cooperation with DHL customer Ricoh and leading wearable computing solutions expert Ubimax,
the technology was used to implement ‘vision picking’ in warehousing operations.
These smart glasses are linked to the company IT system. The worker first picks up and scans a
login card to log into the innovative user interface. Then, they find, pick and scan the ordered items
and placed them along with the rest into the scanned trolley for next step according to the task

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information displayed. By using smart glasses, DHL has managed to dramatically reduce error
rates for order picking as well as ensuring an agile, quick fulfilment of its consumer orders.
Besides, they also use a mix handled scanners and a paper pick list to make the process leaner and
more user-friendly.

Figure 9: DHL global vision picking process smart glasses in warehouse.

2.6 Packing
Packing is the last step in the distribution centre’s procedure that brings together all of the

products that were selected for a sales order and gets them ready to be sent to the client. As soon
as things leave the warehouse, the potential for damage increases, thus it is important that they be
packed as securely as possible. The importance of packing is to protect the products from damaged
and get replacement which add cost to warehouse. Additionally, it may provide clients with crucial
information like thorough handling instructions, for instance, the ideal temperature range for the
items being delivered. Additionally, product packaging might even assist you in boosting your
sales numbers. The likelihood that sales will increase is fairly good if packaging is chosen to
showcase brand colours, product information, and other information that a buyer needs to know
(Natarajan, 2020). The packing used must be inexpensive and not add too much weight to the
products being sent. However, DHL maintains the following packing process activities:

a) Determine the appropriate size of the box by the items inside. Overstuffed containers might
rupture, while under-filled ones may collapse.

b) Make sure that workers always pack shipments with high-quality supplies.
c) DHL choose wrapping materials that are strong, cushiony, and long-lasting.
d) Corrugated cardboard boxes with sturdy outer liners are a great option.
e) When packing anything expensive, DHL workers’ use sturdy double-layered board.
f) Use padding to keep items from shifting around in their packing.
g) DHL use strapping, which is a great technique to keep box shut and safe. In the absence of a

strapping machine, they use sturdy tape.
h) Liquids should be kept in airtight containers with a lightweight, sturdy interior material (like

Styrofoam) and a plastic bag for further protection.
i) Be sure to use adhesive tape to seal semi-liquids, oily, or pungent items before wrapping them

in grease-resistant paper.
j) Powders and fine grains should be packaged in sturdy plastic bags, sealed tightly, before being

placed in a rigid fiber board box.
k) Use "arrow up" notation for fluids and gases.

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l) Labels and stickers should be removed before reusing a box. Check that the box is not damaged
or worn.

Figure 10: Packing process in DHL.
2.7 Shipping

The last step in the warehouse process is shipping, which also marks the beginning of the
journey of items from the warehouse to the end user. In other word, while customer experience
greatly depends on the shipping process, the process itself depends on the preceding processes to
varied extents (Sunol, 2022). It is important to ensure the product received can be accepted by
customers and thus increase the warehouse sales and maintains it daily operation. Unitizing and
shipping at DHL include the following task:
a) Checking the order;
b) Packing the product in the proper shipping container;
c) Preparing shipping documents such as the packing list and bill of lading;
d) Weighing the cargo;
e) Accumulating orders by the outgoing carrier;
f) Loading the trucks

The receiving docks and shipping docks are placed on the same side of the warehouse to make
the most of the available space. The idea of space utilization refers to the way in which an
organization makes effective use of a given area. According to Richards (2018), the things that
move the quickest are situated in the area that is immediately next to the shipping port. In order to
guarantee that the process goes off without a hitch, this is performed to limit the amount of
movement that the items must undergo.

Figure 11: Shipping process in DHL warehouse.
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3.0 OTHER MATERIAL HANDLING EQUIPMENT

4.0 CONCLUSION
DHL has a wide set of capabilities and collaborates with a variety of software partners that are

considered to be the finest in their field. All of the procedures that take place in DHL warehouses are
monitored and controlled by cutting-edge computer systems. In addition to this, they are responsible
for providing support services for activities including transport and distribution, as well as
communicating with customs and other authorities. In addition, a significant number of DHL's rivals
and scale means deploy a large number of these systems in any given year, and they benefit as a result
from DHL's unparalleled experience and expertise.

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Copal. (2019, December 31). Copal in the DHL Trend Report & unloading reefer containers in
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