Background

Global market leader of the international express and

logistics industry.
Founded in 1969 by Adrian Dalsey, Larry Hillblom,

Robert Lynn in San Francisco. 2002- Purchase of Airborne Express, bridged last gap in its US/American network. 2007- DHL Innovation Center, an R&D center, opened to develop innovative products from the logistics trends. 2008- DHL opened the European air hub at Leipzig/Halle Airport in Germany to provide greater connectivity to global growth markets.

Global reach

Number of Employees: around 285,000 Number of Offices: around 6,500 Number of hubs, warehouses, terminals:more than 450 Number of Aircrafts: 420 Number of Gateways: 240 Number of Vehicles: 76,200 Number of Countries & Territories: more than 220 Shipments per Year: more than 1.5 billion Destinations Covered: 120,000

Business model
Briefly summed up to be -linking customers packages to their destinations.
With new technology, this business model hasnt changed

much. They have improved efficiency, expanded the network and reduced costs, with the help from IT.

They operate under four specialist divisions: 1. DHL Express 2. Global forwarding, freight 3. Supply Chain, Corporate Information Solution 4. Mail

1. DHL EXPRESS
Global provider of international road-, air- and rail-

based courier and express services for business and private customers. Through the three product lines- Same Day, Time Definite and Day Definite, they offer the customers a
multi-faceted product portfolio meeting all transport time requirements.

2. GLOBAL FORWARDING, FREIGHT

This division comprises international air and ocean

freight as well as European overland transportation services. This business unit stands for flexible, individualized solutions: national and international full-containerload and less-than-container-load services - via road, rail or intermodal transportation.

3. SUPPLY CHAIN, CORPORATE INFORMATION SOLUTIONS

The main segment of their customer base consists of

the corporate clients, that includes over 75% of the world's largest quoted non-financial enterprises. To its customers, DHL provides outsourcing of:
Freight Forwarding
Warehousing Distribution Transport

Supply Chain Management

After joining forces with Exel in 2005, they can now

provide cutting edge solutions to logistics problems.

Supply Chain Model

4. MAIL
On an international level, DHL Global Mail provides

mail and communication services with direct connections to more than 200 countries around the world as well as offering integrated solutions for corporate communications.

Core Business processes

1.Taking orders- It is a process which requires them to accept packages from the customers.
The customers can avail this service by going directly to any DHL centre, by booking a pick-up or through online express shipping.

customers order, the next step is to set up a schedule for the package to be delivered according to the customers destinations.

2.Sending packages- After accepting the

the actual delivery of the package. This step has the least scope for automation since information systems cannot be substituted for labor.

3.Delivering packages- The last step is making

IT service management
Globally, they have adopted common language,

processes and tools, along with skilled people to ensure that IT services are being managed effectively using internationally recognized IT Infrastructure Library (ITIL) and ISO/IEC20000.

IT service management- Tools offered :

This project tool provides visibility of their project activities at a global level with project documentation available to a global audience, promoting shared learning. Business forecasting and staff productivity tool that visualizes cost, product profitability analysis and options about store inventory, productivity management and on-shelf availability.

Plan View

Smart View

A global webbased information tool that can provide enhanced visibility to DHL internal processes such as customer service, reporting and analysis.

Time Smart

IT service management
Exels Stock Inventory Management System (SIMS) utilizes scan and radio frequency technology (RFID) to provide full stock visibility.
The Tracking tools offered to their customers are:

DHL Toolbar A convenient and direct link from the customers Internet Explorer Browser to DHL's on-line tracking service.

DHL ExpressSMS Allows mobile phone users to track the progress of single shipments.

DHL ExpressWAP Allows access to DHL tracking shipment anywhere and at any time around the world.

Main competitors
UPS- Founded in 1907 as FedEx- Founded in 1971,

a messenger company in the US, UPS has grown into a $49.7 billion corporation. It is a leading provider of specialized transportation, logistics, capital, and e-commerce services.

FedEx soon grew to become one of DHLs most fierce competitors worldwide. It is more internationally focused and a bigger threat to DHL in markets outside the US.

Comparative Advantages
This has enabled them to capture the majority of the corporate clients.

This in turn has lead to economies of large scale production.

They have effectively utilized their information system to provide supply chain management (SCM) and logistics solutions to their clients.

Marketing strategy
Systems integration Their regional integration hubs provide the capability for any-to-

any systems integration, using industry standards and tools that interface internal, external and customer applications. They achieve global co-ordination and value creation for customers through:
Economies of scale, driving down unit costs Reduced implementation times and risk by using proven solutions

Inter-regional compatibility

Guaranteed availability through highavailability designs

Industryrecognized integration standards

Any-to-any integration

MANAGEMENT TEAM
A network of project management offices They work with a supports their small number of leading project managers application and teams, partners to ensure delivering services that all portfolio such as training, mentoring, products meet strict continuous requirements around functionality improvement, and support reporting and support All IT products and Regional services are competency centers deployed in a high are responsible for availability, robust the in-house and scalable product expertise environment in the to sell, implement, context of rigorous support and service management develop each and certified product. support procedures.

DHL Bangladesh
1. Started operations in Bangladesh in 1979. Its main business consists of carrying and delivering time sensitive documents and parcels worldwide, to and from Bangladesh. 2. Almost all clients are corporate clients, walk in customers account for a small portion of the business volume. DHL is mostly used by customers in Bangladesh, who are willing to spend more for urgent or important package deliveries to destinations outside the country 3. Very few or no customers in Bangladesh avail services through the DHL website and so the customers cannot take advantage of the parcel tracking tools.

Competitors in Bangladesh
For internal document mailing and parcel services, the market is mainly dominated by Sonar Courier or Sundarban Courier . The government based parcel service through the General Post Office (GPO) also provides cheaper solutions for customers sending packages out of the country. Express One is a reseller for DHL and has their operations in Bangladesh.

Conclusion: Is DHL a digital firm?

The business model of DHL is such that it cannot completely transform into a digital firm. Some portions of their core business processes (such as, delivering packages) would still have to be conducted under the previous system. But they have used Information Systems to effectively manage and maintain their huge network

In a global business where timeshifting and spaceshifting is a necessity, without any IT aid, it would have been impossible for them to serve the large number of corporate customers.

DHL realizes the importance of IT to help them grow and survive in the long run.

THANK YOU