The Operations and Supply Management of DHL Company

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The report will address the operations and supply management of DHL company system. The company conducts various operational activities which consist of freight transportation, distribution, and warehousing, lead logistics customs, security and insurance services to their potential clients. The shares of the company are held by minority shareholders as well as the representatives within the administration. The collection of vital information was retrieved from the chief executive officer, supply chain and operations managers to assist in analyzing the performance of the company.

Part A

Operation Approaches in the Company

In the contemporary world, many business organizations have developed a collaboration to ensure the production and delivery of goods and services that the customers.  The essence of this is to develop a need to achieve through a vast interconnected series of established processes.  Further, this is not different from the operations of the DHL company which involves the processing of freight transportation, distribution, and warehousing, lead logistics customs (Rushton, Croucher, and Baker, 2014). The operations management is essential to ensure that the products are prepared according to the specifications adequately packaged and delivered to the right place by the owners. The main aspects which should be put into considerations regarding the operations in the DHL company entail the need to forecast sales, improve in the productivity of service delivery systems, maintain quality and to satisfy the demands of the customers. Moreover, it is essential to understand that the development of strategic, operational and tactical matters in the management of the company to be determined to achieve the objectives of satisfying the customer's needs (Nath, Nachiappan, and Ramanathan, 2010, 320).  Therefore, the importance of establishing operational requirements for a logistics company such as DHL requires the determination of essential theories to define its activities.

The capacity timing issues are one of the aspects which describes the leads demand of the company. There are various elements which can be addressed under this perspective which consists of maximizing the sales, meeting the significant demand, development of an increased market share.  Similarly, the need to establish the capacity lags on order is also imperative for the management of the company. The factors which should be put into consideration entails minimizing the capital expenditure, ensures that there are low units costs of production and address the issue of risks lost sales. Notably, the ultimate goal is to make the management obtained the need to direct and coordinate the distribution of products, prices, and sales (Wong, and Karia, 2010, 60). Additionally, evaluation of performance is also vital for the operation management of the company since it assists to appropriate the decision regarding the productivity, improvement changes as well as the cost control measures in the business activities.

The prioritization of choices made by the company to ensure that the material management is effectively applied is also vital for the DHL company. The essence of this is to provide that leaders of the company projected a system to reduce the inventory and expenses incurred in the supply and logistics management (Zailani, Jeyaraman, Vengadasan, and Premkumar, 2012). Moreover, the company also prepares for cases of rebounding and also responding to the conditions of new operating ways reduced labor pool and issues surrounding sustainability in the marketplace. As a result, the practical strategies which have a good plan and the right tools can be vital for the supply chain management to fulfill the pressures to meet the dynamic trends and changes in the future. Therefore for the company to accomplish these goals, there are various operational strategies to be put into consideration (Sanchez-Rodrigues, Potter, and Naim, 2010). The process of adopting a demand planning and business operating model is one of the imperative strategies to be implemented. The system should be on real-time demand insights with the needs on demand shaping which would assist to predict the contingency planning. Conversely, this would allow for a complete view and effective response to any risks which can be associated with supplier going out of business, and lack of freight transportation systems to deliver the products to their destination (Kopanos, Puigjaner, and Georgiadis, 2012, 640). The significant aspect under investigation is to foresight the leverage opportunities and mitigate any possibility of challenging events that can make DHL company succeed.

The other strategy is to build an adaptive and agile supply chain management system that has a rapid integration of execution in planning. The records that after a better understanding of the demands and risks of the company, the supply chains in the markets should be adopted. Therefore deploying dynamic planning capabilities can be essential to meet the changes needed.

The material management process within the DHL company is necessary to be determined by the management. The process begins with the portion of supply chain management when the forecast is complete. Further, it also includes transportation and inventory management of the products to the desired destination of the customer. The understanding of the different functions in regards to the consideration about whether purchasing should be a responsibility of other department is necessary to be determined (Dey, LaGuardia, and Srinivasan, 2011). However, the supply chain management should be critical to ensure there is a flow of communication between purchasing and handling of both the internal and inbound logistics operations.

The choice of the right strategy and tactics for the company should be a priority to improve the supply chain process of the products to be delivered by DHL company to their destination of the client. The development of an enterprise resource planning system is one of the strategies to be applied to support the operations of the company. Besides, the use of just in time method of materials management is also an essential method of material management to ensure delivery of products is on time. Conversely, the primary need to establish these strategies is to meet the capacity management. There are three generic aspects under the capacity management which should be understood. The level of capacity to ensure the company keeps the same capacity irrespective of demand is one of the management system (Sanchez-Rodrigues, Potter, and Naim, 2010). The other one is the chase demand which focuses on flexibility of the capacity to meet the variations of the demand such as change of destination when sending a product using the services of DHL company.

Part B

Management of Operation Materials

DHL company is an international company with the focus to ensure express delivery services and international shipping of goods to the customer’s destination. The company assists in connecting people to other markets by enabling global trade to take place irrespective of the location of individuals involved in the transaction (Hollos, Blome, and Foerstl, 2012). The focus is to become the first customers choice investors and employees in the world. The services offered entails tracking, shipping, customs, and support services solutions. The inventory management is vital for the company in various ways. The company can reduce the chances of spoilage of products to be delivered following the services offered to reach the destination on time (Karimi, and Rafiee, 2014,10). Similarly, it also saves the costs involved in storage within the warehouse of the company.

The fluctuation in warehousing prices can be put into consideration by providing essential facilities to keep these goods for delivery. Besides, material management is useful in keeping the cash flow of the company (Clough, Sears, Sears, Segner, and Rounds, 2015). Primarily, this can be achieved through cutting costs on unnecessary long supply chains which incur more losses in the operations. There are primary material inventory techniques which are used by the company to reduce the cost of services (Christopher, 2016). The initial one is setting par level which consists of making the minimum amount of shipping to be done at hand at all the times to their destinations (Lee, and Lam, 2012). The essence of this aspect is to determine the number of orders made to keep up with the delivery system continuously. Contingency planning is the other primary material management technique which defines the problems affecting the unpreparedness of the business activities (Kumar, and Chandrakar, 2012). For instance when the warehouse of the DHL company exceed the limit to accommodate more goods to be shipped to other destination and miscalculation in inventory by having fewer products than expected to be delivered. Lastly, conducting regular audits within the company by the management. The process of doing proper reconciliation is essential in most of the cases since it reports what is needed to be known in regards to physical inventory (Kinobe, Gebresenbet, and Vinnerås, 2012). Spot checking and cycle counting are some of the other forms of auditing which assist in reducing the issues in products damages before they are delivered to the targeted customers.

Part C

Analysis From the Findings

The focus analysis is essential to determine whether the operations of the company is benefiting from the methods of management implemented. Most of the companies have a strategic plan to develop their strategic goals for the organization. Similarly, this is also practical in the DHL company since the aligned findings are beneficial and provide a competitive advantage to the organization. Further, the most common missing factor to the success of the companies is the determination of a well developed, planned and defined action plan for continuous improvement (Coyle, Langley, Novack, and Gibson, 2016). There is a variance for most of the companies to establish well-defined business goals for operational needs to achieve competitive advantage. As a result, the findings obtained are beneficial in various ways for the DHL company.

The management of the company has enjoyed the determination of essential components for a successful strategy action (Mangan, Lalwani, and Lalwani, 2016). The strategic goals are one of the elements which have been enjoyed since it has provided the leaders with the need to achieve growth, market share and the profit targets. The other components consist of improvement objectives, action plans, and performance measures. These elements have defined the specific, measurable performance improvements, steps, schedules, and responsibilities to achieve the mission of the company (Jacobs, Chase, and Lummus, 2014). Besides, the process of reviewing, updating and evaluating process performance has also been enhanced.

The material management processes implemented by DHL company has developed effective planning operational objectives. The essence of this has been enhanced to ensure a continual process in doing things right by reassessing the existing strategies to measure the possible loops in future. Further, the company has also developed new and modified action plans to effectively and systematically perform a reassessment of the strategy to connect to the customer demands (Tao, Zhang, Liu, Cheng, Wang, and Xu, 2015). Notably, the organization has also benefited from the material management plan through optimizing product designs and management of logistics supply.

The importance of initiating this management options is to ensure sustainability in accelerating profitable innovation in areas where the operations are facing competitions. For instance, DHL company have increased the number of the delivery destination to various parts of the world to be competitive to the emerging and other stable shipping companies in the market. Additionally, the determination of the right prices by the company has also assisted its operations. The designs in the methods used for material management have also been optimized for the supply chain management to meet the demands and customer satisfaction. DHL company has managed the flow of information, people who conduct the services, involved processes as well as decisions regarding the service throughout the lifecycle.

Conclusively, management of the operation of inventories applied by DHL company to determine the need of saving the costs has also been identified as a benefit which can be efficient for the organization. Primarily this has helped to embed the sustainability into supply operations by ensuring a predictable and reliable supply of the goods and services provided by the company. The sustainability offers the competitive advantage through the establishment of opportunities in the capacity timing of the supply chain. The strategy defines the incorporation of the significant requirements across the supply chain processes. Moreover, it also focuses on achieving feedbacks through the development of real-time visibility analysis in shipment transportation.

Reference List

Christopher, M., 2016. Logistics & supply chain management. Pearson UK.

Clough, R.H., Sears, G.A., Sears, S.K., Segner, R.O. and Rounds, J.L., 2015. Construction contracting: A practical guide to company management. John Wiley & Sons.

Coyle, J.J., Langley, C.J., Novack, R.A. and Gibson, B., 2016. Supply chain management: a logistics perspective. Nelson Education.

Dey, A., LaGuardia, P. and Srinivasan, M., 2011. Building sustainability in logistics operations: a research agenda. Management Research Review, 34(11), pp.1237-1259.

Hollos, D., Blome, C. and Foerstl, K., 2012. Does sustainable supplier co-operation affect performance? Examining implications for the triple bottom line. International Journal of Production Research, 50(11), pp.2968-2986.

Jacobs, F.R., Chase, R.B. and Lummus, R.R., 2014. Operations and supply chain management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.

Karimi, E. and Rafiee, M., 2014. Analyzing the Impact of Supply Chain Management Practices on Organizational Performance through Competitive Priorities (Case Study: Iran Pumps Company). International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(1), pp.1-15.

Kinobe, J.R., Gebresenbet, G. and Vinnerås, B., 2012. Reverse Logistics Related to Waste Management with Emphasis on Developing Countries—A Review Paper.

Kopanos, G.M., Puigjaner, L. and Georgiadis, M.C., 2012. Simultaneous production and logistics operations are planning in semicontinuous food industries. Omega, 40(5), pp.634-650.

Kumar, R. and Chandrakar, R., 2012. Overview of green supply chain management: operation and environmental impact at different stages of the supply chain. International Journal of Engineering and Advanced Technology, 1(3), pp.1-6.

Lee, C.K.M. and Lam, J.S.L., 2012. Managing reverse logistics to enhance the sustainability of industrial marketing. Industrial Marketing Management, 41(4), pp.589-598.

Mangan, J., Lalwani, C. and Lalwani, C.L., 2016. Global logistics and supply chain management. John Wiley & Sons.

Nath, P., Nachiappan, S. and Ramanathan, R., 2010. The impact of marketing capability, operations capability and diversification strategy on performance: A resource-based view. Industrial Marketing Management, 39(2), pp.317-329.

Rushton, A., Croucher, P., and Baker, P., 2014. The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.

Sanchez-Rodrigues, V., Potter, A. and Naim, M.M., 2010. Evaluating the causes of uncertainty in logistics operations. The International Journal of Logistics Management, 21(1), pp.45-64.

Sanchez-Rodrigues, V., Potter, A. and Naim, M.M., 2010. The impact of logistics uncertainty on sustainable transport operations. International Journal of Physical Distribution & Logistics Management, 40(1/2), pp.61-83.

Tao, F., Zhang, L., Liu, Y., Cheng, Y., Wang, L. and Xu, X., 2015. Manufacturing service management in cloud manufacturing: overview and future research directions. Journal of Manufacturing Science and Engineering, 137(4), p.040912.

Wong, C.Y. and Karia, N., 2010. Explaining the competitive advantage of logistics service providers: a resource-based view approach. International Journal of Production Economics, 128(1), pp.51-67.

Zailani, S., Jeyaraman, K., Vengadasan, G. and Premkumar, R., 2012. Sustainable supply chain management (SSCM) in Malaysia: A survey. International Journal of Production Economics, 140(1), pp.330-340.

October 24, 2023
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