Background of DHL

DHL is also the specialist for services that include fast shipments to the far and hard to reach corners of the world, with hubs situated in Nairobi and Bahrain. TNT’s focus lies on international markets as well, however focuses its efforts on Europe. Another second tier player is BAX Global who specialized in business-to-business heavy cargo. Earlier BAX Global was focused on the market for overnight letters, which resulted in large losses, till the strategy was shifted towards heavy cargo. The company RPS does not offer overnight delivery but focuses on two-day delivery and a cheap group network with a sophisticated information technology, targeting price-sensitive business customers.

Innovations in transportation and telecommunications have introduced a number of opportunities for companies of all sizes and types to optimize their transportation networks. This paper provides a description concerning the design of a logistics network that consists of only one warehouse. A discussion concerning what steps will need to taken in order to design the optimal network is followed by a description of the information and data that is needed to make this determination. Finally, an assessment of the strategy will be employed in this network is followed by a summary of the research and important findings concerning these issues in the conclusion.

As the world’s largest package delivery company and a leading global provider of specialized transportation and logistics services, UPS, continues to develop the frontiers of logistics, supply chain management and e-commerce combing the flow of goods, information and funds. This past October UPS Logistics Solutions was voted #1 logistics provider by Logistics Solutions. When conducting an industry analysis, it is important to explain the competitive forces model (CFM) of UPS. The first component of competitive forces model are the customers. Their customers consist of business organizations, and the general public. The second CFM component is competition. UPS have a lot of competition in its field, but the most competitive company is FedEx. Since FedEx provides the same services as UPS; both are neck to neck in competition, but UPS has an established history, and because of that, they have more loyal customers, and they are worldly known. They have established them-selves as the elite, with their commercial on television. Showing how they can deliver from one place to another with same day delivery and

FedEx created overnight delivery service and second-day delivery service in order to satisfy customers’ need in a way that its competitors cannot. Both services guaranteed delivery time to every customer, they willing to pay the premium price. In this case, customers self-select the option based on their preferences, depending on the relative values of prices or their situational needs. If there is an urgent package, the customer can select overnight service. However, a second-day delivery is a cheaper choice for customers if they do not need to send the package right away. However, these services are still not much different from its rival such as UPS or DHL. FedEx has to add capacity control strategy, which allows it to maintain its revenue.

Accounting for nearly 10% of the world 's air and sea freight business by revenue, ahead of DHL

Managers of the company believed that the integrated operating model maintained by the company will deliver significant benefits in respect of many performance evaluation criteria, like employee management, environmental issues and financial viability. UPS defines itself as the first delivery service company that has the ability to synchronize the flow of goods, information and funds into a single integrated form of service. Managers and employees at UPS have worked hard to build the scale, the infrastructure, the financial foundation and the specific expertise to give birth to such synchronized form of service (‘Overview’, 2007).

Delivery to a customer is a key component to retail business, whether online or in a store. Measuring delivery cost efficiency, the total cost of delivery from the stock(s) to the customers’ homes or to the desired store for pick-up is evaluated. The delivery cost is the key measurement for this metric. The

Operation leaders are tasked to identify the critical success factors and core competencies of their business functions and objectives in order to generate sustainable long-term growth. Critical success factors are actions essential for a business to reach its objectives. (Heizer & Render, p. 42, 2009). UPS’s key success factors are its efficiencies in scheduling, integrating the stream of goods, its ability to provide multiple solutions such as “harmonizing the flow of goods, information and funds across customer supply chains” while enabling consumers to “evolve in new and necessary ways” (Lewis, Forquer & Quinter, pg. 2, 2007). UPS’s environmental factors include their supply chain design and planning, competitors in logistics such as FedEx, distribution services, diversification in the global environment and focusing on differentiation. UPS is also an expert in its industry because the strategy is globally focused and is centered on diversification of its systems (See Appendix1.1)

The evolution of the express mail industry had become a quick on-time shipping and delivery of packages. The service had become effective, reliable, and prompt, which most of the top companies could deliver on these guaranteed promises 96-99% of the time. But, delivery services were only a portion of the services being offered to their customers. Carriers had mastered information management that they shared with their customers. Customers were now able to fill out labels, track the route of their package, and assisted in billing using both via carrier provided software or the Internet.

United Parcel Service (UPS), is the world’s largest express package delivery firm that handled more than 4.7 billion packages and documents in 2015. This global transportation and logistics service provider operates in more than 220 countries, and offers an array of supply chain management solutions (UPS Fact Sheet, n.d.). The firm has diversified its products and/or services to include freight forwarding and logistics services via air, ground, rail, and sea. U.S. Domestic Package operations, International Package operations, and Supply Chain and Freight operations are the three operating segments UPS. Through technology advancements UPS delivers online package tracking, e-commerce services, and specialized

FedEx was first established in 1973 as a logistic company with the name Federal Express that be created by founder and first CEO Frederick W Smith. The Headquarters is in Memphis, Tennessee in the US. The company became well known for its fast and reliable delivery service around the world. On its first night of operation FedEx delivered 186 bundles to 25 urban locations in the US with only 389 employees and a 15 Dassault Falcon aircraft. In 1980 FedEx purchased a system for live updates on the packages. In this system, FedEx drivers share the current locations from the trucks to provide updates of the packages to the customers. This information was sent to a central computer of FedEx then the company improved the update system by introducing FedEx.com webpage. This webpage allowed the tracking data to be easily accessible. However, recently, FedEx uses Savvy bundle for packing and tracking the products across couriers. (Baldwin, 2016)

 Our objective is to analyze the distribution network in order to minimize annual system wide costs that subject to a 95% customer service level for ALKO. Integrated Minds considered a scenario approach and looked at net present values to factor inventory costs and quality over the planning horizon.

UPS was formed in 1907, by 19-year-old Jim Casey. Originally, focused on delivering messages in Seattle. Over the 98 years since its founding, it had transformed itself several times i.e. from messages to package delivery, to international air Transport Company, finally, in the 1990s, to a logistics company. It is world’s largest package-delivery company. The company was leader in specialized transportation and logistics and it Serves 200 countries.

Since 1907 UPS promised its customers one thing “Best service and lowest rates”. From the time of its inception, the company has evolved as world’s leading ground and air package delivery company. UPS is investing over advanced information technology solutions in order to maintain a high level of customer service while keeping costs low and streamlining its overall operations, hence increasing customer satisfaction as well as employee efficiency. Every single year UPS tracking system spends more than $1 Billion dollars to uphold level of customer satisfaction extra ordinary. Through the use of information technology UPS can ensure that its customers (including individuals and companies) get the best service output at lowest possible rates. UPS is consistently keeping rates low to contend with higher competitors like Fed Ex and Air Bourne

The variability of logistics performance is quite relevant. ALP has not been able to guarantee a reliable service to its customers in the last years. There seems to be a lack of organization when providing the service to the customers, in the sense of establishing priorities and