Background of DHL

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Abstract DHL is the world's leader in regards to express shipments. However, most of the company's success has come from building a network that has been based on management's intuition about building a service network. It was not until the company hired consultants to use a scientific management process to model the network that they were able to use a sophisticated model to optimize their service network. The researchers built a model based on two measures of service performance which included service coverage and service reliability. Furthermore, now the company is also able to use this model to consider tradeoffs in their operations between such factors as cutoff times and service reliability whereas before the company basically just used instinctual decision making to address such issues. This paper will provide a brief overview of the model prepared for DHL. Who is DHL? DHL is the world's largest express and logistics network and the company represents the global market leader in international express, overland transport and air freight. The organization was founded in San Francisco on Sept 25, 1969, when Adrian Dalsey, Larry Hillblom and Robert Lynn (the D, H and L in our company name) incorporated DHL. Another milestone was crossed when in 1972 DHL International is founded- Sydney office opens and is the headquarters for Australia. The company further expanded in 1983 when it forged ahead of the competition and created an express delivery route in
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