The Case Study Of Dhl Commerce Essay Example

chain management in the UK consumer goods industry.

Research Rationale: The purpose of this study is to investigate the correlation between supply chain management (SCM) and organizational performance in small manufacturing companies in the UK. While previous research has examined SCM's importance, factors, and implementation, there is limited knowledge regarding its impact on organizational performance. Therefore, this project aims to address the following objectives and questions:

Research Objectives:

1. To determine the significance of each aspect of SCM on performance.
2. To examine whether effective SCM has a significant impact on supply chain resilience.
3. To investigate which has a greater influence on organizational performance: SCM or resilience.

Research Questions:

1. What is the importance of each aspect of SCM?
2. Does effective SCM enhance organizational performance?
3. Is there a connection between SCM and organizational performance?

This research specifically focuses on exploring how supply chain management relates to organizational performance in the consumer goods industry within the UK. The researcher conducting this study demonstrates a strong academic and professional commitment to ensure its success.

The demand for supply and delivery services in the UK has increased in the 20th century due to people's lack of time and desire for fast and reliable product delivery. The UK government has set a vision for package and messenger services by 2020, expecting a ?9 billion growth in this sector, which will contribute 0.7% to the economy. This demonstrates the popularity of these services and why numerous companies are interested in entering this market, while also emphasizing the impact of organizational performance on supply chain management. With an expanding population, there will be continued growth in the requirement for messenger and delivery services. This proposed research focuses on DHL, a renowned global brand, investigating how

it effectively manages its supply chain within both domestic (UK) and international consumer goods markets.

The company consistently ranked among the top 100 global brands, along with DHL, FedEx, TNT, UPS, and Aramex. DHL is particularly interesting to analyze due to its successful supply chain management and use of social media marketing across various platforms. The researcher's findings will allow marketers to understand the impact of organizational performance on supply chain management in the UK market. These findings will help businesses in the logistics services industry become more skilled and efficient in terms of organizational performance.
Company Background
DHL (Doctor of Humane Letters) is the world's leading brand in the logistics sector, based in Bonn, Germany. DHL is also known as Deutsche Post.

DHL, originally founded in 1969 as a San Francisco to Honolulu paper delivery service, has since expanded globally and become a prominent provider of air and sea mail services. The company offers various products such as DHL Express, DHL Global forwarding, DHL cargo, DHL supply chain, and DHL global mail. With over 300,000 employees worldwide, DHL competes with rivals FedEx, UPS, and TNT in offering advanced logistics solutions. To expand its customer base, DHL has developed an extensive network accessible through its website (hypertext transfer protocol: //dhl.com). Through this platform, customers can conveniently track shipments, book deliveries, calculate shipping costs, and review estimated delivery times.

DHL offers clients the capability to track both international and local shipments with an accessible history. Moreover, customers have the choice to generate customs statements related to their shipments, including details on delivery time and cost. DHL places great emphasis on delivering high-quality services and is dedicated to providing exceptional experiences for

its clients. To ensure this, the company has implemented various precise programs, specifically through its Delivering Quality Globally (DQG) program launched in December 2010. The DQG program functions as a quality management system that tackles any inconsistencies that may occur within DHL's logistics framework across worldwide locations.The PTQ plan aims to provide self-judgement, easy procedures, stability, sustainability, and simplicity (Delivering quality globally 2012). Additionally, DHL is involved in sponsorship and serves as a major patron for organizations such as Surf Life Saving Australia, Manchester United Football Club, Porsche RS Spyder Le Mans prototypes in the IMSA American Le Mans series, and the Bohemian F.C. conference of Ireland giants. In the past, when people wanted to purchase something and send it to another location, they had no option for ordering and had to personally buy the items and go to the desired place to send the package. However, with the introduction of Post Office services by the government, people now have the option for package delivery. This section of the research paper examines previous literature on the topic (Literature Review).

The writer has examined the literature related to this survey and conducted a critical analysis in this chapter. The review process started with defining supply chain management and its different aspects. According to the writer, this section of the literature review also discusses how the performance of organizations is affected by their supply chain management structure.

The writer has discussed and critically analyzed various literature on supply chain management and the advantages associated with it for improving company performance.

Academic Theory

Supply chain management is a crucial aspect of any organization, as it involves managing the resources that connect consumers

to suppliers (Handfield, et al 2002). This new theory has led to multiple definitions of supply chain management. According to Ganeshan and Harrison (1999), supply chain management is a system that encompasses the entire process of sourcing materials, transforming them into finished goods, and distributing these goods to consumers. The supply chain management process involves various activities, starting from acquiring raw materials, transforming them into finished products, and finally delivering them to consumers through a defined delivery system (Lee and Billington 1995).

According to Christopher (1998), supply chain management is the organizational system that connects the upstream to downstream and from manufacturing to the delivery of products to the end user. It involves coordinating functions within a company and linkages between companies to improve long-term performance, known as supply chain management (Mentzer et al 2001). The writers define supply chain management as processes starting from raw material delivery, production, and distribution of finished products to end users. Companies, including the supply chain, differ in size and product type.

Supply chain management involves overseeing activities related to acquiring raw materials and distributing the final product within an organization. This process is crucial for maintaining product quality, meeting customer satisfaction, and reducing costs. The supply chain includes manufacturers, warehouses, retailers, suppliers, transporters, and end users. Daniel O'Leary (2006) states that manufacturing organizations aim to efficiently manage their inventory of raw materials and other goods used in the manufacturing process.

The supplier's role is vital in establishing and sustaining connections with manufacturers. The movement of goods depends on the supply chain, which can be perceived as a rivalry among various supply chains rather than solely individual companies. Nonetheless, businesses are progressively

realizing that supply chains are transforming into supply networks.

Supply chain management is essential and necessitates careful implementation as it plays a crucial role in organizations' competitive advantage (Francois and Gilles, 2005). It entails strategically executing activities pertaining to the operation of the supply chain (Li et al., 2006). The research conducted aimed to enhance comprehension of different facets of supply chain management, with specific emphasis on addressing both upstream and downstream aspects (Li et al., 2005).

The text suggests that literature has categorized supply chain management based on certain proportions. Some argue that more time and investment is needed for studying and implementing dimension tools in order to improve supply chain practices (Min and Mentzer, 2004). To fully understand supply chain management, it is necessary to analyze various aspects. The reviews mentioned above indicate the existence of three aspects of supply chain management: synchronized relationships, strategic purchasing, and long-term relationships. All of these aspects aim to justify supply chain management in a holistic manner, rather than focusing only on partial practices.

There is a brief description to each of the three dimensions accessible below: -
Long term relationships
There has always been argument about long term relationships, such as communication and confidence in the writer and literature belonging to selling (Heidi and John, 1990). Although supply chain management literature has not given importance and impact to relationships (Fynes et al, 2005). The initial aspects of supply chain management literature are considered to be long term relationships literature (Min and Mentzer, 2004). The essence of long term relationships is the domination of maintaining cooperation among two or more companies for mutual gains (Carr and Pearson, 1999). Companies involved in supply

chain management should always be in long term relationships for mutual advantage, which can enhance trust levels among partners and facilitate knowledge management (Griffith et al, 2006).
Parallel technology
The involvement of customers, suppliers, and manufacturers in the design of services or products is referred to as parallel technology work (Celtek and Kaynak, 1999).

From a standpoint, the supply chain's various mechanisms are closely interconnected. This is evident in numerous papers and literature discussing the significant role of consumers (Li et al, 2006). According to Jarvis (1999), parallel technology encompasses all interconnected stages simultaneously. In simpler terms, consumers who participate in cross-functional teams can collaborate with members from other areas such as production, finance, and procurement to establish a perspective.

Strategic buying

Strategic buying holds great importance in the literature on supply chain management. Cousins (2005) explains that purchasing and procurement have always been crucial elements in the strategic planning of any organization.

An organization has viewed purchasing as a competitive advantage (Ferguson et al, 1996). Some have linked this to consumer satisfaction (Brookshaw and Terziovski, 1997). According to Carr and Peterson (2002), they have identified strategic purchasing as a factor in upstream supply chain management. This is where suppliers are specifically targeted. Strategic purchasing is carried out based on whether suppliers are knowledgeable about the company's goals, whether purchases align with the company's strategic objectives, and whether purchases address long-term issues for the company (Chen and Paulraj, 2004A & 2005B).

According to Cousins (2005), strategic buying has always involved increasing knowledge and expanding administration in order to enhance communication between the members of the supply chain.

Objective of supply chain management The author highlights challenges faced in this theory of supply chain

due to difficulties in analyzing the performance technique of the supply chain (Beamon, 1999). Generally, terms like 'insufficient' and 'sufficient' are used to quantify performance methods (Beamon, 1999). The addition of entities with different natures makes it difficult to analyze the soundness of the supply chain management act.

Instead of this study, supply chain performance in terms of meeting short-term and long-term goals can benefit from various performance methods implemented by the organization. Based on existing literature, three key methods of supply chain management performance have been identified: supply chain flexibility in delivering products, reducing inventory costs, and responsiveness to the consumer. The measurement of supply chain delivery flexibility is considered a crucial factor in assessing the overall awareness of the supply chain. The level of flexibility is directly proportional to the level of supply chain awareness.

In terms of supply chain flexibility, if a highly flexible supply chain is observed, the demands of the consumers will also be rallied accordingly, which makes the consumers perceive the supply chain as more constructive (Gunasekaran et al, 2001). To determine how agile a distribution system is in terms of supply chain, it can be modified according to the fluctuations in customer demands (Kumar et al, 2001). It is crucial that the supply chain has significant cost reduction (Gunasekaran et al, 2001). The accurate costing associated with inventory maintenance has gained global attention from a supply chain perspective (Piplani and Fu, 2005). When inventory retention is expensive and problematic, improvements should be made (Piplani and Fu, 2005). The reduction of inventory costs is linked to the reworking and disposal of inventory and is implemented with regards to the

costs that are integrated in finished goods stock management and sales loss due to record keeping of discontinued production (Agrawal and Shankar, 2002).

When customers demonstrate their increased awareness, the performance of a company's supply chain can be assessed based on several factors, including order arrangement time and delivery time. The primary goal of supply chain management is to meet customer demand (Beamon, 1999). The operational aspect of the supply chain must be able to adapt to changing consumer demands in order to fulfill orders on time (Uncles et al., 2003).

Measuring Organizational Performance

Supply chain management has led to improved performance, as evidenced by increased revenues, cost savings, and decreased product backlog (Shine et al., 2000).

When these benefits are declared as the long-term goals of the supply chain (Tan et al., 1998), some literature suggests that business productivity is linked to its market share (Buzzel et al., 1975).

Administration relies on short and long term supply chain management objectives to analyze the market and economic performance, as well as customer satisfaction. Market and financial performance analysis depends on market share, total assets return, and annual growth (Venkatraman and Ramanujan, 1987). Consumer-based performance relies on meeting consumer expectations, considering their desires, maintaining their loyalty, and supporting company goals with integrity (Fecikova, 2004). The process and metrics of performance are discussed in relation to supply chain management performance (Stewart, 1995; Gunasekaran et al., 2001).

Procedure for order planning
The order entry technique

This process ensures that consumer wants and requirements are incorporated into the agreed-upon information between supply chain links.

Order lead-time relates to the time it takes for a supply chain to process an order and deliver the finished product to the customers

according to their demand. This period is shorter than the reaction time of supply chain management, providing a competitive advantage in terms of customer service (Christopher, 1992).

The consumer demand way refers to the path through which customer orders pass. This determines the time required for order fulfillment across various channels.

Now, the public presentations that do not assign any value to the completion of the order are known so that they can be removed.

Appraisal of supply connection

In previous periods, supplier performance was measured based on the market price offered and the accuracy of delivery time. Previously, the selection of suppliers and manufacturers was based on price variations. However, there has been a drastic change now where suppliers and manufacturers approach their customers based on reliability and quality of services. Supplier appraisal can also be measured based on the specific requirements of the supply chain methods, which are important for operational, programmatic, and strategic purposes. At the strategic level, this includes the level of quality, planning for cost savings, and pricing that aligns with various types of values.

Measures for the strategic level include assessing the efficiency of the purchasing process, methods for engaging with suppliers, methodology for cash flow management, and ensuring quality and capacity. The operational level involves evaluating the ability to meet deadlines, responsiveness to feedback, and achieving error-free deliveries. The purchasing and supply chain management must be able to deliver products on time according to company needs. Attention must be given to future design requirements, annual growth strategies, financial capabilities, and promoting future production. When entering a supply chain management partnership, both the buyer and seller rely on each other for mutual success and

a shared understanding. These partnerships focus on long-term relations, solving specific problems, and planning efforts.

The sellers (providers) have formed a partnership with researchers to create a new research position (Graham et al., 1994). Each individual has their own opinion about the relationship between a supplier and a manufacturer in the supply chain. They believe that it is necessary to ensure easy and efficient operations in the supply chain. The importance of maintaining a strong relationship with partners is also emphasized.

In order to demonstrate efficiency, the achievement of the providers alone is not enough. A superior relationship assessment must be conducted. The crucial aspect in determining the effectiveness of the partnership is how well the partners cooperate and support each other. The assistance provided helps to resolve issues and highlights the strength of the relationship between the providers. The evaluation of the partnership depends on the criteria that will ultimately lead to successful implementation, thereby ensuring the effectiveness of the supply chains.

Prosodies and Measures for the Production Phase

The second phase involves assembling the components described by the writer to complete the merchandise. The manufacturer is mainly responsible for determining the cost, quality, delivery speed, flexibility, and classification of the product (et al., 1995). This phase is a crucial part of the supply chain, so constant measurement and improvement of production quality are necessary. Here are some suitable metrics for the production phase mentioned by Mapes et al.

, 1997 ) merchandise and services picks: it appears that companies with high-quality picks and merchandise are connecting some numbers to introduce new merchandise series. Industries with larger merchandise series have noticeably lower performance in

areas such as employee satisfaction, efficiency, and timely delivery. This report demonstrates the negative impact of product design series on supply chain achievement. Consumption of Capability: According to the statement mentioned above, it is clear that the capability to adapt to other activities is crucial in the supply chain.

According to Slack et al. (1995), the use of capability plays a key role in balancing response speed to customer demands through lead time, flexibility, and delivery. Efficient period systems refer to processes that are carried out within a specific timeframe and location. These systems determine the allocation of resources in an organization and greatly impact production efficiency and the entire supply chain. Period systems, such as MRP, JIT, and ERP, are implemented in various scales and involve purchasing during specific time periods. The implementation of these time systems should consider consumer needs and the success of the supplier, as they play a significant role in the logistics service industry and the overall supply chain market (Small et al.).

In the logistic sector, the most important aspect is the appraisal of rescue linkage, which directly impacts consumer perception. According to a market study, the first determining factor for customer satisfaction is the techniques and enhancement of delivery, which leads to increased profits. The characteristics of delivery are vibrant but also challenging, resulting in improvement and evaluation. It is crucial to consider reliability and anticipate the potential effects on the method coverage within the key elements, which is not a simple task (Rushton and Oxley, 1989).

Assessment of bringing narration to steps: Every supply concatenation company focuses solely on reducing time in order to enhance delivery performance (Stewart, 1995). Christopher

(1992) explains that time order fill is the combination of fulfilling orders in full and consistently. Other factors that affect delivery include the number of final products in high demand, which can lead to low stock turnover and inflated capital. The speed of vehicles, warehouse locations, delivery locations, and driver reliability are also important factors. If a company addresses all these factors, the efficiency of inventory levels will decrease (Novich, 1990).

The invoiced figure or measures forgery notes: Sometimes, invoice measurement providers can engage in fraudulent activities.

The text discusses the importance of including detailed information about the period of delivery, date, and status of goods in an invoice. It mentions that a different approach is taken in understanding whether the delivery was complete or not, and adjustments can be made in case of contract or agreement discrepancies. The company has a flexible delivery system tailored to meet the customers' needs and fulfill their desired delivery preferences. This convenience allows customers to plan their orders and contributes to maintaining customer satisfaction (Novich, 1990).

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