DHL: A Logistics Giant Driven By Innovation Since 1969 - Research Paper

Introduction

The DHL logistics company is known of the largest international companies in the world. Founded in 1969 in San Francisco, Dalsey, Hillblom and Lynn decided to optimize and enhance the logistics service related to maritime transport of goods from the US west coast to Hawaii (DHL Corporate History, 2019). To facilitate the process, they decided to fly all the cargo-related documentation by plane, so by the time the cargo ship reached its destination, all the paperwork was already dealt with and the dispatchers could pick up their goods immediately. Thus was born DHL, without anticipating that they would revolutionize the world of logistics. For decades, the range of services has been expanded to correspond to the constant changes in the various sectors. Today, DHL is the world's leading logistics company. It has over 350,000 members working in over 220 countries working every day to support the cross-border delivery of goods (DHL Corporate History, 2019). On average, 1282 million orders are delivered per year. The company evolves based on two "R"'s - Respect and Results (DHL Corporate History, 2019). DHL values its members and gives them opportunities to go further in cooperation that achieves results. Pioneering the use of parcel tracking and express air transportation, DHL continues to work to be the customer's partner of excellence.

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DHL Aviation is a subsidiary of DHL Express (part of the Deutsche Post DHL Group) tasked with providing air transportation. DHL Airlines provides air transportation capacity to enhance DHL's business activities. Currently, DHL owns 5 airlines; the first one is European Air Transport whose main headquarters are in Brussels, Belgium. It serves the DHL's European network as well and also travels long distances such as the Middle East and Africa. For long haul distances, DHL aviation uses the Airbus A300B4 and the Boeing 757SF/PF (DHL Corporate History, 2019). The second is DHL Air UK, which also happens to the latest acquisition and its main headquarters are in the United Kingdom at the East Midlands airport in. This airline serves the DHL European Network and the main aircraft used is the Boeing 757SF. The third airline is the DHL's Middle East airline whose main headquarters are at Bahrain International Airport. This airline serves many destinations in the Middle East such as Iraq, UAE, and Afghanistan among others through a regional aircraft. The fourth airline is the Latin American airline (DHL Aero Express) whose main headquarters are in Panama City. This airline serves destinations in the Central and South American region through a Boeing 727 aircraft. The fifth airline is Blue Dart Aviation whose main headquarters are in India at the Chennai International Airport. The airline serves India and other nearby regions using the 3 Boeing 737-F and 5 Boeing 757-F.

Managerial Aspects of DHL Aviation

The 3 main values that guide the company are Quality focus which is the basis of success, with the objective of constructively solve performance problems, people management, and development, and build a strong reputation with external participants (Baxter, 2019). The second value is a commitment which is the heart of success, with the aim of building a strong common identity, increase cooperation between teams, and increase trust among employees based on leadership culture. The third value is responsibility. It is the backbone of good leadership with the goal of improving the sense of responsibility towards customers, employees and shareholders and increasing awareness of the need to change the way of thinking and improve the work culture.

The philosophy of the company is: Fight permanently to achieve the objectives of the organization, promoting teamwork, enjoying the spirit of unity, with total commitment and responsibility for the construction and consolidation of the group, reflecting the identity as a result of the personality of each individual. The company recognizes human capital as the main resource to achieve the results. In this way, the team will be recognized for its total commitment of delivery, protecting essential values, compromising the best talent, temperament, and willingness towards social responsibility.

The main objective of DHL is to provide an adequate and sustainable response to the needs of customers to ensure their satisfaction and increase their loyalty, ensuring respect for the environment in the environment in which they carry out their activities. DHL aims to provide excellence in service, through a trained team through a quality management system implemented to achieve the satisfaction of customers, in an environment of continuous improvement (Dresner & Zou, 2016). The fundamental objective is based on the following commitments: Apply excellence as a principle in management. Ensure high levels of professionalism and commitment of staff, providing them with the appropriate training and environment. Make improvement, anticipation, productivity and pollution prevention a company philosophy that provides a cost reduction compatible with respect and environmental protection. It offers to the market innovative transport solutions that generate trust in Clients. Maintain a relationship based on mutual benefit with all the stakeholders with whom they interact (customers, suppliers, market, public administrations, and society in general (Baxter, 2019). Achieve differentiation of competition by service levels in all areas related to the client. Ensure the level of performance established by management in all business processes with an impact on the customer's perception of the environment. Generate a feeling of cooperation, communication, and understanding between the delegations and the different departments of DHL. Maintain a systematic verification and continuous improvement of environmental performance and process performance through the education of technological means and information and organizational systems. Comply with the applicable legal requirements and other requirements that DHL subscribes in relation to environmental aspects.

DHL Aviation's Resources

Since in 1969, the three founding partners of the company had only a second-hand vehicle and a corporate credit card, the company's infrastructure has increased at the pace of the growth experienced, in order to be more competitive, offering a greater coverage and quality in the service to its clients, guaranteeing the distribution of merchandise and assuring the reliability in the delivery in record times that the majority of its competitors does not reach (Baxter & Srisaeng, 2018). This would not be possible without an extensive network of infrastructures spread all over the planet, understanding as such, all the means it possesses for this purpose. The company's infrastructure can be classified into 4 groups: Offices and commercial headquarters, technical equipment and machinery, computer and Information Systems, and equipment and means of transport, a fleet of vehicles. Worldwide, DHL has about 2400 Warehouses and Distribution Centers, occupying a total area of 23,000,000 m2 and of which 5% are owned, and as the company expands, the network and area coverage increases as well.

DHL is the world's leading logistics company. It has over 350,000 members working in over 220 countries working every day to support the cross-border delivery of goods. DHL launched the "First Choice" methodology at the beginning of 2007 (Morrell & Klein, 2018). It is an improvement program for the entire Deutsche Post group, with the aim of offering excellent service in all areas of the business and becoming the number one option for customers throughout the world. The objective is to mobilize workers to a process of continuous improvement, which allows creating greater customer orientation by providing services with excellence. First Choice is a systematic approach that allows optimizing business processes and services and increase customer satisfaction levels in the long term.

DHL maintains online tools through the web, which allow full visibility of the package in real-time, through this system the customer can track up to 50 express shipments at any time of the day (DHL Express Partnerships, 2019). DHL offers a wide variety of solutions for customs needs with people specialized in knowledge of customs processes in each country, who are in charge of the formal declaration of entry and special certificates, to exports or temporary imports, DHL uses local knowledge to understand customs regulations, acting as a customs mediator on behalf of its clients. This makes taxable shipments dispatched quickly and efficiently.

The major types of aircraft and the fleet are shown in the figure below.

The entire infrastructure complies with international regulations given by the DHL matrix in Germany; this makes it optimal for international coverage. DHL has its own air, sea and land fleets, depending on the country where it is located. In Ecuador, for example, DHL has its own land fleet, approximately 40 vehicles between large and small vehicles.

DHL Aviation's Operations

DHL Aviation offers a wide variety of value-added services based on local and global knowledge, becoming a logistics partner or service provider for the supply chain in the contracting, manufacturing, transportation and customization, delivery or returns sectors, offers customized solutions for all industrial sectors (Liu & Wen, 2012). DHL Aviation organizes regular and chartered flights using a wide range of the main carriers as well as its own competitive services (approx. 250 Aircraft owned), which makes them flexible enough to be able to support those who deliver both for the first time, as to regular importers and exporters of cargo (Baxter, 2019). The most common packaging used in air transport by DHL is the ULD (Unit Load Device or Unitary Load Element), which allows a large amount of grouped cargo, its handling being easier in operations.

The modalities of air shipments offered by the company are summarized below and in more detail in Table 1.

Urgent This service, called DHL AIR FIRST will transport the goods in the shortest possible transit time since the shipment will be placed on the first available flight and will receive a priority service to the destination airport.

Economy DHL AIR VALUE is effective when the priority is to use the minimum cost of moving the goods but the shipment must be made by air. It is designed for loads less time-sensitive and accepts somewhat longer transit times, and provides an economical alternative to DHL AIR PREMIUM. To achieve the most competitive price, DHL AIR VALUE ensures that the cargo will be routed through the best routes through the main entry consolidation centers.

Flexible with defined dates DHL AIR PREMIUM is the best option for fast service with a fixed budget since it consolidates the shipment to make it cheaper and assures you that you will arrive on time to airports and major international trade centers worldwide.

Door To Door Delivery of Goods of Large Dimensions DHL Global Forwarding through DHL AIRFREIGHT PLUS offers flexible and reliable door-to-door delivery and collection service in Europe because it combines and brings together the simplicity of an express carrier and the competitiveness of a freight forwarder. It is the solution for the shipment of heavy goods, large and/or high value that requires high levels of security, and made within a defined transit time to the whole world.

Companies need their flows with customers and suppliers to occur in the established times, so it is possible to choose the desired transit time and DHL is responsible for choosing the means of transport and the route so that the shipment arrives on time to your destination. This modality offers the following service options in 36 countries:

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