DHL SUPPLY CHAIN

BPMG 3133 WAREHOUSE MANAGEMENT

SEMESTER A211 (2021/2022)
GROUP B

INDIVIDUAL ASSIGNMENT 2:

DHL SUPPLY CHAIN

SUBMITTED TO:
ASSOC. PROF DR HERMAN SHAH ANUAR

PREPARED BY:
NAZATUL NAJIHAH BINTI AZMI

272409

TABLE OF CONTENT 2
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INTRODUCTION
Figure 1: DHL Supply Chain, Penang Hub 3
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ENTREPRENEURIAL OPPORTUNITY OF DHL SUPPLY CHAIN
Figure 2: The flow of DHL Supply Chain 4

ENTREPRENEURIAL EXPERIENCE OF DHL SUPPLY CHAIN 5
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DHL RESPOND TO RISK TOLERANCE IN THEIR DAILY OPERATION
Figure 3: Safety sign for a Safety First project by DHL 6
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DHL’S DIRECTION ON THEIR INTERNAL LOCUS OF CONTROL 7
Figure 4: Additional warehouse, Penang Hub
Figure 5: Operational process 8
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DHL’S TARGET OF ACHIEVEMENT AND PERSEVERANCE
Figure 6: Digital technologies 9

REFERENCES 10

APPENDIX

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1. INTRODUCTION

Figure 1: DHL Supply Chain, Penang Hub
DHL Supply Chain is a subsidiary of Deutsche Post DHL and a component of the
Deutsche Post DHL team. Adrian Dalsey, Larry Hillblom, and Robert Lynn started DHL in
Germany. DHL Supply Chain offers transportation solutions, warehousing solutions, and
value-added services to their clients. In Malaysia, this logistics sector was established in
August 1968, in Kuala Lumpur. In northern Malaysia, they also operate a logistics hub
branch in Bayan Lepas, Penang. The building's location and construction are in keeping with
current architecture of the time. Logistics is used in almost all industry's business procedures.
Coordination of products or other items and passengers is a procedure that the entire globe
has employed. Because of the services provided, this organization is well-known in the world
of logistics.
The organizational goal is to contribute in making the customer, investor, employees
and world better. The layout of a warehouse is determined by an estimate of the facility's
storage capacity. The suggested approach is based on historical inventory and customer
demand that are assumed as input for a stock out risk evaluation study that is aimed at
determining the warehousing system's necessary storage capacity.The warehouse operational
processes are the activities that support logistics services. A warehouse management system
(WMS) is a collection of software and processes that enable businesses to govern and manage
warehouse operations from the inbound until outbound process.

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2. ENTREPRENEURIAL OPPORTUNITY OF DHL SUPPLY CHAIN

Entrepreneurial opportunity is defined as a factor that allows a product or service to
be sold for more than the cost of manufacture. As a result, the organisation can profit from
the sales. In this instance, DHL has numerous options for profiting from its customers. As
everyone knows, the supply chain connects a production with its suppliers to manufacture
and deliver a specific product to the consumer. Production, inventory, and distribution of the
products are all part of this network. The supply chain also refers to the stages involved in
getting a product or service from its initial state to its final destination. It contributes well to
our economic growth and receives customer satisfaction and loyalty. Businesses develop
supply chains to minimize costs and remain competitive in the global market. Supply chain
management is a critical component of the business process. There are numerous connections
in this chain that necessitate skill and knowledge.

When supply chain management is done correctly, it can reduce a company's overall
expenses while also increasing profits. If one link fails, it can harm the rest of the chain,
which can be costly. For example, if the corporation can establish its warehouse, the cost will
rise, as will the cost of labor. Teams engage with important accounts to enhance processes
and reduce non-value-added activities such as demand unpredictability. DHL Supply Chain is
a major logistics company that offers its customers the quickest and most effective service.
DHL is a major logistics firm with a high level of competitiveness among its rivals. This
company's advantages can deliver benefits that most other logistics businesses cannot.
Technology is critical in a business for several reasons, including enhancing customer service
and lowering warehouse management expenses. It serves as a third-party logistics provider to
increase the efficiency of the logistics process. 3PL, at its most basic, provides logistical
services to assist various sectors of shipping operations.

3PL providers are frequently connected with a company's warehouse and shipping
systems. Whether the company is huge or small, 3PL is one of the most smooth delivery
solutions. It results in satisfied consumers, and the company expands swiftly. DHL Supply
Chain offers warehousing services to their customers. They will keep the items and deliver
them to a future consumer. Intel, Motorola, and Lumileds are among the clientele.
Third-party logistics (3PL) firms handle their customers' items.

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Figure 2: The flow of DHL Supply Chain

The team assists with both incoming and outbound activities. The third-party logistics
provider is a necessary link between the client and the end customer. The creation of
interaction with the end-user is a major reason why 3PL is required. Consumers demand a
diverse range of items to be readily available in warehouses at all times and to be delivered
on schedule. To do this, consumer products firms require extremely efficient, flexible, and
sustainable global supply networks.

3. ENTREPRENEURIAL EXPERIENCE OF DHL SUPPLY CHAIN

Working on your own revolves on our time and how we manage it. However, as a
team, we must have the ability to manage hundreds or thousands of individuals from various
backgrounds. Because DHL Supply Chain is a large and well-known firm, they may have
excellent entrepreneurial expertise to manage the team and organisation. There is a significant
difference between working alone and working as part of a team. The achievement of the
company's KPIs demonstrates its success. The performance might be evaluated based on how
many targets and goals were met in the previous six months or a year. Regarding the leaders
who contribute to this company, it was the ideal combination to ensure DHL's continued
success in the years ahead.

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DHL places great emphasis on brainstorming culture among its employees.
Regardless of position and age, this culture can increase a person's confidence and leadership
and it also yields quite lucrative results for an organization. Furthermore, brainstorming is a
strategy for improving management quality. Not only does it train us in terms of concepts, but
it also trains us in terms of consistency and focus on what we want to execute. It produces
excellent outcomes and raises our KPI. This organization is extremely concerned about the
quality of service it provides to its consumers. As a result, they employ the notion of
customer-driven excellence to improve the quality of their work. They guarantee that their
firm does not get many complaints about flaws or lost items in order to preserve production.
Due to its excellent entrepreneur experience, DHL has been recognised as the fourth best
place to work in the world in the 2019 Great Place to Work and FORTUNE employer
ranking.

4. DHL RESPOND TO RISK TOLERANCE IN THEIR DAILY OPERATION

Every organization and businesses including DHL, has ups and downs. There are
several issues confronting this corporation, many of which result in financial losses.Threats
include everything that might have a detrimental influence on an organization from the
outside, such as warehouse issues, demand patterns, or a shortage of hires. It is vital to
anticipate dangers and take action against them before becoming a victim and stifling the
organization's growth. One approach for the team to learn from mistakes is via team
weakness. A method or technique for overcoming a vulnerability is to do a SWOT analysis.

According to DHL’s SWOT analysis, DHL faces a severe issue or obstacle due to an
excess of inventory supply relative to demand. One of the reasons for this is that DHL gives a
lower promotional rate than its competitors. Thus, DHL Supply Chain response to this risk
tolerance is by doing the same thing and sale as competitors do. Other competitors, for
example, are engaging in a revenue growth battle. Because other businesses are vying to
dominate the logistics sector and dethrone the monopoly. Furthermore, there is a greater risk
of customers choosing and moving to other competitors. With the exception of a few
businesses, the services are nearly comparable. As a consequence, DHL has taken note by
always standing out and providing value-added services to its clients.

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Figure 3: Safety sign for a Safety First project by DHL
Workplace safety is critical for a leader to keep zero cases that occur under his
supervision, including material handling, fire, and chemical safety. If an accident happens,
the employer or leader must accept responsibility and act appropriately. As a result, every
workplace must be secure and have appropriate SOP that all employees must follow. Below
is the sign that contributes to keeping the employee safe in the workplace.

5. DHL’S DIRECTION ON THEIR INTERNAL LOCUS OF CONTROL

The company facing a risk must have a clear direction for regulating its services or
operations by establishing an internal locus of control inside the organization. When dealing
with an issue or problem in the business, it is critical for DHL, and especially its
management, to have locus control of the points involved. In situations when the firm has an
internal locus of control, the solution to an issue may be determined by the organization's
efforts and talents. The next section will provide my thoughts on how this corporation
employs its internal locus of control to overcome a risk to its operations. Since there is a
greater need for logistics services, DHL has increased the number of storage facilities at its
Penang hubs. The team has reduced the expenses on transportation by building a massive
warehouse close to their headquarters.

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Because, in contrast to conventional warehouses, it depicts the warehouse employing
highly automated pick, stack, and shipment systems to guarantee that orders are handled
securely and delivered on time, in my perspective, this is their internal locus of control. This
will allow it to dramatically expand its supply chain infrastructure, giving it a competitive
advantage over other companies. DHL has the ability to serve a greater number of customers
in the country more easily and effectively because of its high-tech warehousing
infrastructure. To conclude, this is one of the excellent routes in which this firm might go in
order to distinguish itself from its competitors.

Figure 4: Additional warehouse, Penang Hub

Figure 5: Operational process

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6. DHL’S TARGET OF ACHIEVEMENT AND PERSEVERANCE

DHL Supply Chain has achieved its target of achievement and 2019 is their successful
year. Our company's financial position is stronger than the previous year and has an excellent
position within the industry. Furthermore, DHL makes advantage of technology's
magnificence in its business. Approximately 13% of DHL owned vehicles employ automated
technologies.The success of these in launching their supply chain management system to
ensure they will deliver their goods on time without any delay. At the same time, the supply
chain management system that they also build undeniably is an outstanding achievement.
Following that, a world without boundaries will construct a success against an organisation.
One of the aspects that contribute to company growth is digitalization. According to the DHL
sustainability report, digital technologies increase their service quality. It also links both
parties and can help to avoid commercial miscommunication.

Figure 6: Digital technologies

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7. REFERENCES
Cosimato, S. (2014). The Influence of Green Innovation in Logistics

Competitiveness and Sustainability. The DHL Case Study. DHL, 101–105.
Herold, D., & Lee, K. H. (2017). The Influence of the Sustainability Logic on Carbon

Disclosure in the Global Logistics Industry: The Case of DHL, FDX and UPS.
Sustainability, 9(4), 601. https://doi.org/10.3390/su9040601
Lee, S. (2021, June 15). How digitalization has transformed DHL Express’
operations. DHL Logistics of Things.
https://lot.dhl.com/how-digitalization-has-transformed-dhl-express-operations/
Strategic Management Department. (2020). DHL SWOT Analysis Matrix (Strengths,
Weakness, Opportunities, Threats). Fern Fort University.
http://fernfortuniversity.com/term-papers/swot/1433/1101-dhl.php

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8. APPENDIX
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