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DHL Supply Chain Case Solution & Answer

DHL Supply Chain Case Solution

Executive Summary

The case illustrates the environment degradation that most likely led to many customers and governments to pressurize businesses to make their business operations more environmentally friendly, also the case demonstrates effective example of the corporate social responsibility. More notably, it also exemplifies how a small increase in the budget of the supply chain can radically and significantly reduce the carbon dioxide emission (CO) in the LCD TVs transportation from their manufacturing bases to the center of distribution. The DHL had been reasonable to ship the products at specified point under the given budget thereby receiving tax incentive from government for reducing carbon emission and to achieve a high level environment protection as a whole. The decision matrix has been used to evaluate the most appropriate ODM to produce the LCD TV and shipped to DC. It has been analyzed that the LCD 42” ODM 1, LCD 42” ODM 4 and LCD 32” ODM 1 should be given LCD production contract because the total ODM have fallen under the proposed minimum and maximum ranges of production and shipment constraints.  In addition to this, the distance from the production point to the distribution center for LCD 42” ODM 1, LCD 42” ODM 4 and LCD 32” ODM 1 is comparatively longer, additionally, the production cost per unit is lower as compared to other ODM, so it has been concluded that the production contract of LCD should be given to ODM1 and ODM 4.

Background

DHL has handled largest share of the growing market by international express carrier, it is a German logistics company founded in 1969. Initially, the company had engaged with door-to-door express delivery service, the brand is worldwide known for pro-active solutions, personal commitment and local strength.  The exclusive success of DHL has been highly based on excellent customer service. The whole business includes contract logistics, air and ocean fright, courier services, engineering and consultancy to various different such as life sciences, electronics, consumer, financial, industrial, automotive, and other value-added services. The network of DHL has been growing at a phenomenal pace; The westward had been expanded by company from Hawaii into the Pacific Rim and Far East, Middle East Africa and Europe.  In 1988, the company had been present in 170 countries and had 16000 employees. At the start of 2002, Deutsche Post World Net had become one of the major shareholders at DHL, in 2003, all the express and logistics activities had been consolidated by Deutsche Post World Net into one single DHL brand.

In addition to this, a world-renowned manufacturer of the industrial equipment and heavy construction have been experiencing tremendous growth in recent times, The company has now been operating as the multiple distribution center and manufacturing sites across four continents.

Evidently, DHL has been highly committed to the sustainable development since its establishment; it has also been creating effective, innovative and environmentally friendly logistics services that fulfill the needs of customer, while minimizing the detrimental impact. Additionally, DHL always strives to decrease emission, thereby increase efficiency, it offers customized logistics solutions, Besides, The company had commenced Go-Green Environmental protection program and embedded environment responsibility into the solution offerings and business operations of DPDHL, increasing the customer preference for brand and creating value for customers, thereby strengthened the market position of DHL…………………..

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