Case analysis of DHL
DHL was founded in1969 and has a high performance in the worldwide market. As the important strategic significance and high margin of U.S. express and logistics market, DHL attempted to entry the market since 1983. The value-add services of DHL
DHL offers international logistic services. DHL provide three parts of value-add service as Assembly, Kitting and Co-packing Services; Pre-retail Services and other services. Assembly, Kitting and Co-packing Services include Product assembly/postponement /configuration, Kitting/pre-assembly, sequencing/line feeding, Co-packing and Packaging design. This part of services provides the assembly of modules and components, “producing large runs of standardized products and then customizing them for local markets in the downstream supply chain”, “a full range of kitting and pre-assembly services” (http://www.dhl.com/en/logistics/warehousing_and_distribution/value_added_services.html) and packaging work. This part of work ties in to Sourcing and Production of an organization’s value chain activities. Pre-retail Services, includes Re-working/re-packing/returns management, Labeling and tagging, Garment processing, Retail ready POS displays and Product launches, ties in to Marketing in an organization’s value chain activities. Other services, such as QA/QC control, Customs compliance, Consolidation/deconsolidation and Bonded warehouse, has more related to Distribution and After-sales Service of an organization’s value chain activities. As the value-add services showed above, there exists a trend that the express and logistics industry would participate deeper in the value chain of focal firms including MNEs and SMEs. Focal firms may move the assembly, marketing of local market and storage to the express and logistics industry. The target clients for logistics companies and factors influent the logistics providers The target clients for logistics service provider like DHL are businesses which do not have...
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