Question

How does DHL effectively use resources in their warehouse?

Answer 1

DHL is evidently one of the leading courier and logistics solutions company in the world with a global coverage ranging almost more than 220 countries and adjoining territorries. The services of the company practically covers all types and categories of physical goods, confidential documents and also some service oriented dispatches with reliable and door to door delivery system. One of major attributes behind DHL's global expansion and ever increasing market share is undoubtedly its cost effective and synchronized Warehouse Management system that has consolidated its reputation for reliable and on time service across the world. Let us examine some of the  ways the company handles its resources effectively in warehouse.

The Warehouse Management(WM) of DHL encompasses the following important aspects:

• Coordinated and shared supply chain operations
• Effective Goods Handling and Temperature Controlled Storage Facilities
• On time storage, pick, pack and dispatch
• On time delivery and return management

First, shared operation implies a more coordinated functioning of all the supply activities in order to ensure hassle free and timely delivery of shipments to final customers through constant goods traceability. In this regard, DHL implements a standardized synchronization between its employees including order processing, inventory requirements according to customer orders, inventory counting, shipment tracking and monitoring, quality check, constant communication with the transportation agencies, billing and payment. It is imperative that warehouse employees or staff must maintain a consistent communication with all other concerned departments of the company to guide warehouse activities according to customer needs and preferences and arranging inventory accordingly to ensure enough avalability and on time and hassle free delivery. Few years back, DHL has initiated a collaboration with RedPrairie Corporation, a global supply chain technology provider which has implemented a highly cost effective and simplified inventory tracking system with a specific bar code/security features. It facilitates a comprehensive and consistent goods tracking system starting right after the order processing from the customer and further transmits all the necessary information regarding shipment specifications to the warehouse employees so that they can channelize the inventory operations accordingly.

Secondly, effective goods handling and avoiding damaged or unsatisfactory delivery is a major attribute that contributes to a sustained customer reputation. The warehouse system at DHL strictly distinguishes shipments according to their perishability, priority delivery and quality maintenance. The tracking technology is also helpful in this regard that helps separate goods on the basis of perishability and customer priorities and provides accurate information to the various other supply chain agents. This not only enables quality assurance across all stages of supply chain and inventory control but laos provides highly cost-effective supply chain solutions.Furthermore, the temperature controlled storage facilities available at various warehouses at DHL are constantly ensuring quality controlling especially for the international shipments which requires relatively higher delivery time and quality handling.

Thirdly, DHL utilizes advanced tracking system and other advanced technological tools to ensure timely inventory circulation and dispatches.It is highly important to track each individual shipment right after the order has been processed and billing has been done. Once the shipment has been recieved from the customers by the local DHL centres, the distribution centres recieve the full shipment information including all the specifications and details which is further transmitted to the inventory staff and employees.Using leading edge Warehouse Management System and Workforce Management System, DHL coordinates the entire information transmission process to their inventory employees to esnure proper inventory handling and maintenance which facilitates immensely in timely order picking, shipment packaging and timely delivery to the final customer.

Fourthly, DHL strives to ensure a flexible and hassle return procedure for their customers.As part of the return policy the customers are required to label their shipments to be returned which are then picked up for return by DHL staff.The returned shipments are then stored and handled separately by inventory department so that these are not mixed up with the outbound shipments which are prepared for either local delivery or export. To avoid manual errors in inventory count and handling, warehouse management software is used for the assortment of the returned and outbound shipments. Furthermore, the customer service department contributes in the process of inventory/warehouse improvement by keeping accounts of customer complaints, accounts of damaged/unsatisfactory delivery or delayed shipments.

Thus, much of the global success and market share of DHL is certainly based on modifying the inventory and warehouse requirements according to ever changing consumer needs and demands and achieving economies of scale through cost-effective and digitalized warehouse management system.