DHL Express Competitive Advantages - Assignment Example

DHL Express Competitive Advantages Department DHL Express DHL Worldwide Express is a good example that helps illustrate the dynamics of the international air express industry and how the market is growing in the Middle East and Asia Pacific regions (Diego, 1999). It demonstrates how DHL and its competitors have embraced latest technologies, reviewed their regional operations and invested in equipments and facilities. The reason behind this is to achieve a competitive advantage aimed at providing effective and efficient services to customers. DHL is a market master of the global air express industry. According to DHL official website (2014), it has an international network that links more than 635, 000 cities in 228 countries. In addition, DHL has more than 60, 000 employees. It was founded in 1969 and within that time, it has grown to be a recognized name in the express delivery sector. DHL has a renowned high-speed telecommunications network that is built on internet protocols (Wirtz, 2011). Currently, its internet applications process more than forty percent of all shipments and take care of ninety percent of all shipment tracking requests. The company’s management team is now considering how to attain competitive advantages and make it sustainable. Low price services and low-cost operations, as well as the quick delivery and collection, are the main aspects in this business. The major international competitors include United Parcels Services (UPS), Federal Express (FedEx) and TNT Express Worldwide (Diego, 1999). UPS came into the market in 1907. It has been a leading global freight provider having access to almost all kinds of aircraft and vehicles around the globe. On the other hand, FedEx came into the market in 1971. In comparison, DHL and FedEx have fewer employees than UPS but their service region is almost equal. TNT operates more than twenty-six thousands road vehicles and close to 50 jet freighter aircraft. In addition, it has more than 75, 000 employees. According to the official website of TNT, it operates in more than 200 countries with more than 2300 depots. In reference to the official websites of FedEx and UPS, both companies offer different kinds of insurance policy. The UPS risk management department can offer auto liability insurance for its consumers. FedEx also offers a similar service. TNT, on the other hand, states that it is willing to accept claim request in the incidence of an accident (Thomas Nationwide Transport, 2014). The four companies offer close to similar services to customers. Their main task is to deliver mails and goods through air, land or sea to another place as required by the customers. UPS Critical freight is comprised of a number of transportation modes ranging from surface, charter, hand carry and air. In addition, they have advanced tracking services that are accessible through the internet. FedEx provides a variety of shipping supplies that comprise paddled envelopes, packing tapes, corrugated box sizes, mailing tubes and plastic bubble wrap. For high-tech goods such as laptops, MP3 players and cell phones, FedEx provides a specially designed box. DHL is renowned to use different high techs to track the mails and goods. DHL has a program by the name GO GREEN that is put in place to measure environment impact. On the other hand, FedEx develops an Earth Smart Solution to improve their service, product, including trucks, planes and other facilities to produce tangible and clear benefits. UPS put in use Carbon impact analysis, design of packaging to deal with environmental problems. Being the international leading 3PL companies, UPS, FedEx and DHL work through subsidiaries. Each of the subsidiaries is divided for a specified task. The quality of DHL service in West Europe and Asia is very efficient. On the contrary, in U.S and South America, UPS and FedEx are the leading companies in the region (FedEx, 2010) To stand out among its competitors, DHL Express ensures that its entire staff is International specialists. Moreover, this ensures a high standard of information and knowledge about the international logistics within the company. DHL Express has close to eight million clients. In addition, the company ensures that they do more than two hundred flights per day in America. It is estimated that DHL Express operates close to 840, 000 deliveries globally. Unlike the other companies in the industry, DHL Express seeks to be a business consultant as opposed to being just a vendor. DHL has also put in place technology administration and management E-Tools that are essential in supporting their operations and ensuring efficiency in serving their clients (Kostecki, 1998). In addition, they provide a wide portfolio of services and products to their clients. DHL Express ensures that it focuses on hiring personnel in the regions they operate to create significant relationships with their clients. They employ local people who are well conversant with the local regulations and customs (Adhikari, 1997). Local people have added advantage since they know the local language, beliefs and culture hence making it easy to serve the clients in their respective countries. The staff has better understanding of the customer’s expectations and needs to realize customer satisfaction (Coltman, Gattorna & Whiting, 2010). DHL Express ensures that it works with diverse people who are really helpful in case of enquiries. They ensure that the working environment for the employees is conducive, thereby preventing malicious businesses inside the company (Madox, 2005). There is good pay scale for the employees and they practice constant change of job elements to keep the brains of the employees active. To spice up all this, DHL is ranked as one of the best in class technology. The needs of every shipment and warehouse are supported by customized soft wares. The technology functions and services include self-help portal, direct airline links, automated Dispatch System, EDI alternatives, auto advertisements through email, short messaging and fax, Quarterly Business reporting tool, driver scanning and paging tools. In addition, DHL has best in class system of phone that has call balance routing, call identifier and secure monitoring to speed order flow. There are many products that are currently becoming virtually identical and DHL offer the best service to gain an edge over its competitors. Excellent delivery of services contribute to the larger part of consumer satisfaction and create a difference among the competitors in the industry. DHL focuses their services on quality, reliability and flexibility (Coltman, Gattorna & Whiting, 2010). Understanding competitor is an essential approach to winning market share. UPS has an advantage when it comes to the total number of employees. UPS has the ability to exploit the rich human resource to accomplish more tasks than DHL, TNT and FedEx. On the contrary, the high number of employees may also increase the cost directly (Maddox, 2005). Regarding insurance verification, DHL is the leader even though FedEx and UPS have complete liability insurance. DHL, due to the new security technology and equipments, has gained customer satisfaction and loyalty (United Parcels Delivery, 2014). References Adhikari, R. (1997). DHLs biggest package. Informationweek, (633), 125. Coltman, T, Gattorna, J, & Whiting, S 2010, Realigning Service Operations Strategy at DHL Express, Interfaces, 40, 3, pp. 175-183 DHL official website, Retrieved October 21, 2014, from http://www.dhl.com/en.html Diego, R. (1999), The international express industry in Western Europe. FedEx official website, Retrieved October 21, 2014, from http://www.fedex.com/us/index.html Kostecki, M. M. (1998). DHL Worldwide Express: Providing Just-In-Time Delivery Services across Customs Borders in Central and Eastern Europe: Case Study Maddox, K. (2005). Success story No. 2: DHL Express USA. B To B, 90(10), 28-30. TNT official website, Retrieved October 21, 2014, from http://www.tnt.com/portal/location/en.html, UPS official website, Retrieved October, 21, 2014, from http://www.ups.com/content/us/en/index.jsx?WT.svl=BrndMrk Wirtz, H. (2011). Innovation Networks in Logistics-Management and Competitive Advantages. International Journal of Innovation Science, 3(4), 177-192 Read More