Case Study report of DHL
The rapid development of global commerce has drove logistics to reduce products lifecycles, increase response and action efficiency and optimize investments of inventory for current businesses. Therefore, logistics plays a pivotal role in nowadays commerce. The objective of the report is to discuss and evaluate the existing logistics theories. Whereas, DHL will be selected as a case study so as to get a further understanding on logistics according to the analysis result. Introduction
As with the growing complexity of transporting goods and supplying materials for a business in world’s supply chain, expertise that developed to deal with this kind of problem is imperative so logistics. The concept of logistics is not specific, the world’s formal definition is ‘Logistics is the management science of supply chain and the art of controlling and managing any kinds of resources flow like products, information, petrol and even people between the origin point and the consumption terminal so as to satisfy clients’ demand’. Logistics is in relation to the process of moving the right products and services at the right quality to the right place at the right time with right prices. It is said to be the essential part of any marketing or manufacturing activities. Logistics involves Literature Review
Since the value of time becomes more and more important in today’s global commerce, transportation speed and delivery reliability are necessary for companies to compete emulously in business operations which drives logistics industry to improve service standard. In 1996, Kostecki pointed that conscientious in accordance with service determine logistics companies’ emulously advantage and success. To that content, an important part to be integrated into time management for logistics industry is operating business with clients effectively and innovating more efficiency operation skills with clients. This is important because any inefficiencies and irregularities in operating with customers that happened in different regions can affect the commerce environment significantly for logistics companies argued by Ahanori and Nachum in the year 2000. They said that the current development trend in logistics industry is just in time supply, e-commerce and growing globalization management. In 1998, Altabet predicted that logistics theory would be updated into supply chain management. The impact of effective forecast in the process of supply chain management on a company is significant. Kiely states that it will result in inventory investment reduction, customer satisfactory improvement and product distribution efficiency enhancement. Generally speaking, forecasting eliminates companies’ worry about excess inventory investment so as to increase the efficiency when operates with customers. Another important managerial skill for commerce is the cost management theory. Degraeve and Roodhooft point that over half of entire costs is accounted from external goods and services parchment. In order to hold a competitive position in the logistics market, companies should develop a more dependable and lower cost supply chain while assure high service quality for customers. Some suggests that company can increase the cost management reliability via computer technology. With the increasing importance of globalization transaction, contracts act essential role in international trade. On account of companies always being confronted with the situation of accomplishing orders with deadline and quotas, some suggest a management approach of Vendor management inventory to handle the problem (Waller, 1999). The management project help companies distribute the requirement materials more flexible and offer the possibility of cost reduction and efficiency improvement at the same time. Objectives
With the purpose of understanding logistics theory in accordance with practical application and to see how enterprises apply logistics theory to...
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