Introduction
As globalization takes root in the world business arena, there has been a dire need for the movement of products across borders. DHL is a global company that provides logistic solutions to clients worldwide. Presently, the company has divisions in more than 200 companies across the globe. The company also takes pride in always being the first logistics company in new markets. The company’s vision is founded on offering exceptional services to clients so they will always return. The company is a leading player in the logistics industry, operating for decades. Although based in the United States in 1969, the company has since moved its headquarters to Bonn, Germany. The company uses air, rail, sea, and road transportation modes to deliver goods to clients. The goals of the company have a global perspective and consider the core principles of success in the contemporary business world, such as simplifying life for clients, ensuring that employees, customers, and investors have the best experience with the company, and making the world a better place (DHL, 2023). The company provides a perfect tool for analyzing global supply chain and logistics operations.
Role of DHL Within the Global Retail Supply Chain
The retail industry is enormous and increasingly faces bringing goods closer to customers. Effective supply chain management can drive a company toward competitive advantage because it builds consumer confidence and allows the retailer to offer goods at relatively lower prices. DHL is a leading player in global retail supply chain management. The landscape has been made complex based on the worldwide consumer needs perspective. DHL has taken this as a challenge and priority and seeks to employ excellence in ensuring that all retailers meet the needs of their customers effectively (DHL, 2023). DHL has led in fostering innovation in the global supply chain. For instance, one of the organization’s core objectives is ensuring that goods are delivered cost-effectively to ensure that retailers can offer products at competitive prices. Furthermore, the global market is competitive, and retailers are constantly looking for areas where they can access products competitively. Other core considerations DHL considers are ensuring that perishable products reach the market when fresh, providing the end-to-end security of goods, and fast delivery (DHL, 2023). Figure I is a diagram representing the global supply chain of DHL.
Figure 1: DHL Extended Supply Chain
Shipping and Receiving Operations of the Company
As a leader in the industry, DHL provides a perfect business model for business analysts and smaller companies. Figure 2 (DHL, 2023) shows the current DHL global shipping and receiving operations and how it has adopted innovative technology.
Figure 2
DHL logistic solutions also offer warehouse services where goods can be kept safely for retailers to ensure they can keep a constant supply in their outlets. From the diagram, there is the realization that they have centralized consolidation and deconsolidation centers that provide that supply is not disrupted. As a global logistics company, DHL has also adopted innovative technology that improves the security of the customer’s products and allows real-time tracking. The company has 400 offices across the globe and a fleet of more than 10,00 vehicles that penetrate all the market that matters. The company has, in recent years, adopted a green economy in response to global warming issues and environmental sustainability. For instance, the company uses vehicles that emit a low amount of carbon into the atmosphere.
Possible Challenges and Opportunities in the Company’s Operations
DHL has carved a solid niche in the supply management industry and, as a global leader, has taken steps to incorporate emerging technologies such as tracking systems. There are specific drawbacks to the company that, when addressed, can steer it to greater heights. The company must take advantage of the digital platform, especially from the social media perspective. Most companies establish a digital presence because most people prefer to order online. The companies need to have an interactive platform where customers can share their experiences and provide DHL with crucial feedback concerning their operations globally.
Frontiers are opening in new markets, such as Africa, the Middle East, and Asia. However, there is the perception that DHL is a high-end company that primarily deals with corporate clients. The company needs to take the initiative to allow persons from all economic backgrounds to access its services. Small and micro-enterprises operate in developing countries but ship raw materials from the developed world. Some retailers require an easy way to obtain goods from the global market at competitive prices. Although the company has offices across the globe, its level of activity could be improved due to ignoring a lucrative yet subtle market in developing countries. The website could be more interactive, and it would be easier for persons with less experience using the internet to access services effectively. There are numerous opportunities for development for the company. Maintaining a competitive advantage is challenging as a leading player in the supplies and logistics business. Competitors are coming and demanding a market share in the growing industry. Therefore, the company should adopt the necessary strategies to maintain a competitive advantage.
Possible Solutions to the Challenges
Leaders and entrepreneurs are becoming younger and drawn from diverse cultural backgrounds. Having a solid and interactive digital presence is the only way to reach such a diverse clientele. One of the steps the company can take is to ensure that they have active accounts in leading digital platforms to get clients in remote regions. Furthermore, there is a need to have close contact with customers and to ensure that the feedback they provide is used to improve service delivery.
DHL also needs to intensify its operations in the developed and ensure that as new markets open up, it is always the first logistics company as stipulated in its vision. There are minor and microenterprises opening up in the developed that can make DHL can tap. For example, manufacturing, agricultural, apparel, and other businesses either buy raw materials from the international market or sell their products globally. The company should ensure that opportunities in the new market are exploited optimally. The third approach is to make the website for various regions more interactive. Standby customer care agents should be ready to respond to clients’ queries. These strategies will ensure that DHL remains a global retail supply and logistics leader.
Conclusion
Global business trends have opened up new frontiers that make retail supply an urgent necessity. Consumers are conscious of global markets and continuously demand international products in local retail outlets. Therefore, an organization such as DHL ensures that retailers never lack supplies. Furthermore, there are emerging challenges, such as the need for customers to consume non-processed products fresh from the farm. These, coupled with the need for security, make the services of DHL a necessity. The company plays the crucial role of running and extending supply detail with 400 branches across the globe. In addition, the shipping and receiving operations demonstrate its global presence. There are opportunities, such as having a more prominent digital company and taking advantage of emerging markets in developing countries.
References
DHL. (2023). DHL International Supply Chain: Discover the Advantage of a Smarter Supply Chain. Retrieved from DHL: https://www.dhl.com/content/dam/dhl/global/dhl-global-forwarding/documents/pdf/dhl-glo-dgf-international-supply-chain-brochure.pdf
DHL. (2023). Supply chain excellence for every retail market. Retrieved from DHL: https://www.dhl.com/content/dam/dhl/global/dhl-supply-chain/documents/pdf/brochure-retail.pdf
DHL. (2023). Vision and Mission. Retrieved from DHL: https://www.dhl.com/pl-en/home/our-divisions/parcel/about-dhl-parcel/mission-vision.html
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