Case Study of DHL International
DHL International:
An Ambitious Competitor
in Global
Logistics Services
When Adrian Dalsey, Larry Hillbolm, and Robert Lynn founded DHL as a door-to-door express service between San Francisco and Honolulu in 1969, no one could have imagined the business evolving into a crossborder express delivery group linking 120,000 destinations in more than 220 countries and territories. Now owned by the German company Deutsche Post World
Net, DHL offers express services, international air and ocean freight, contract logistics, and value-added services. While DHL is the market leader for courier express delivery in Europe and Asia, the brand struggled to develop a reputation for quality service in the
United States.
Global Supply Chain and Logistics Industry
To address the needs of customers who want simple and convenient solutions at competitive prices, the supplychain and logistics industry has changed dramatically since the early seventies. The industry includes companies that move raw materials, finished goods, packages, and documents throughout the world. Four trends are affecting the industry: globalization, deregulation, digitization, and outsourcing. Growing cross-border trade has increased the complexity of the supply chain, creating demand for professional management of the logistics activities of a focal firm. Focal firms clearly recognize the benefits of moving goods through a supply chain faster and more efficiently. As a result, specialized logistic service providers such as DHL, UPS, and FedEx have emerged to organize, coordinate, and control supply chains through technological advancements and a global presence. These facilitating firms developed global networks of offices and warehouses, acquired trucks and aircraft, and invested in extensive information tracking systems.
DHL's Internationalization
DHL entered the international express arena in 1971 with services to the Philippines. The next year, DHL initiated
An Ambitious Competitor
in Global
Logistics Services
When Adrian Dalsey, Larry Hillbolm, and Robert Lynn founded DHL as a door-to-door express service between San Francisco and Honolulu in 1969, no one could have imagined the business evolving into a crossborder express delivery group linking 120,000 destinations in more than 220 countries and territories. Now owned by the German company Deutsche Post World
Net, DHL offers express services, international air and ocean freight, contract logistics, and value-added services. While DHL is the market leader for courier express delivery in Europe and Asia, the brand struggled to develop a reputation for quality service in the
United States.
Global Supply Chain and Logistics Industry
To address the needs of customers who want simple and convenient solutions at competitive prices, the supplychain and logistics industry has changed dramatically since the early seventies. The industry includes companies that move raw materials, finished goods, packages, and documents throughout the world. Four trends are affecting the industry: globalization, deregulation, digitization, and outsourcing. Growing cross-border trade has increased the complexity of the supply chain, creating demand for professional management of the logistics activities of a focal firm. Focal firms clearly recognize the benefits of moving goods through a supply chain faster and more efficiently. As a result, specialized logistic service providers such as DHL, UPS, and FedEx have emerged to organize, coordinate, and control supply chains through technological advancements and a global presence. These facilitating firms developed global networks of offices and warehouses, acquired trucks and aircraft, and invested in extensive information tracking systems.
DHL's Internationalization
DHL entered the international express arena in 1971 with services to the Philippines. The next year, DHL initiated