The Development of DHL's Global Trading and Transportation Hub at Cincinnati

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Airline Industry Introduction The announcement today that DHL will be developing a global trading and transportation hub at the Cincinnati/Northern Kentucky Airport (CVG) signals a broader trend of freight forwarders, third party logistics (3PL) providers, and transportation services organizations to seek greater economies of scale to reduce lag times in supply chains (Schmidberger, Bals, Hartmann, Jahns, 2009). DHL is building a 180,000 square foot facility at the Cincinnati/Northern Kentucky Airport to support large-scale express shipment, better integrate with motor and rail carriers, and increase efficiencies of 3rd party logistics services across the 220 nations DHL serves (HeraldOnline.com, 2013). The Role of Global Hubs In Supply Chain and Logistics Services Optimizing the performance of a given logistics network begins by gaining insights into the specific attributes of a given hub and its related dependencies over time. Using constraint-based modeling many freight forwarders, 3rd party logistics providers and services providers who rely on multi-modal transportation strategies are using hubs to define optimal freight loads and mode-based delivery (Schmidberger, Bals, Hartmann, Jahns, 2009). By modeling a supply chain to these specific aspects, including the use of hubs to optimize overall performance, global logistics providers including DHL have the option of further fine-tuning each aspect of their business model, using the aggregation and re-routing

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