DHL Transportation Improvement Plan
Transportation 2018 is an action plan for transportation of DHL Express Company for the next three years.
Background of DHL
DHL has for several years been ranked as the largest logistics company worldwide, and this is cemented by the fact that it operates around the world. It was originally founded in 1969 with its primary objective being to facilitate the delivery of items from San Francisco and Honolulu and vice versa. The proprietors of the company were Larry Hillblom, Adrian Dalsey, and Robert Lynn who came together as partners and combined the initials of their last names; hence the name DHL. At the time of the inception of the company, the partners shared a Plymouth Duster that facilitated movement and transportation of items around San Francisco. The business later expanded as early as the 1970s to other countries such as the Philippines, Japan, Hong Kong, Australia, and Singapore. Later expansions saw its penetration in markets in the Soviet Union, Eastern Bloc, Iraq, Iran, China, North Korea, and Vietnam (Pasiuk & Vault (Firm), 2006).
DHL’s rapid expansion has seen it offer worldwide services, including deliveries and international express mail services. In fact, it is a global leader in both sea and air mail. The delivery of its services is directed to countries all over the world such as Iraq, Myanmar, Afghanistan, and others. The location of its headquarters in various parts of the world has enhanced the delivery of services. For instance, its headquarters for the American countries are found in Plantation, Florida in the USA whereas the headquarters for the larger European hub is located in Leipzig, Germany. Also, the base to serve the Asia-Pacific and emerging markets are found in Malaysia, Hong Kong, China, and Singapore (Pasiuk & Vault (Firm), 2006).
With its status as the world’s largest delivery and most international company, DHL serves markets in the regions of Europe, North America, and Asia Pacific. Also, its strong position and dominance is evident in markets such as Africa, Brazil, India, Mexico, and China.
With its global headquarters located in Bonn, Germany, the company has capitalized on various supply chain strategies to ensure the delivery of its services to customers. First, the organization has been involved in mergers and acquisitions to facilitate faster delivery of its services to customers. In 1999, DHL acquired Danzas, a Swiss logistics provider, and in the same year, there was the acquisition of Air Express International (AEI). Both had a significant number of employees and strong logistics networks in all continents, and this speeded up DHL’s service delivery. DHL also provides its services through retailers though consumers can also have direct access to the company’s services (Pasiuk & Vault (Firm), 2006).
A better transportation future
The need to support DHL’s expected growth as well as improve its service transportation to consumers has seen the development of a Transport Improvement Plan named Transportation 2018. DHL’s TIP lays out a financing plan that will see a change in how people or consumers fund transportation improvements. The TIP also focuses on the company’s contribution to realizing global dreams of reducing pollution and eradicating climate change (Liu & Wen, 2012).
Current TIP 2015-2018
DHL’s current TIP provides a list of current transportation projects in its markets in every part of the world: Americas, Europe, Asia Pacific, Far East, and Africa. The projects are funded and supported by part of the company’s excess profits, and funds from global financial institutions such as World Bank.
The list of DHL’s current TIP projects is as follows:
- Intelligent Transformation Systems
- Freight Mobility
- Active Transportation that involves Bicycle and Pedestrian Planning
- Air Transportation Planning
Intelligent Transformation Systems
Arguably, the integration of computer technology and communication (ITS) can largely improve transportation. DHL focuses on integrating transportation systems between 2015 and 2018 to facilitate the improvement of safety, dependability, efficiency, as well as cost-effectiveness of its global transportation systems.
To ensure freight mobility that is the backbone of profitability, DHL has plans to shift focus to all freight modes including marine cargo, air, truck, and rail. This will be achieved through a strategy that will involve the coordination of the company’s subsidiaries and freight stakeholders. The primary plan for Transportation 2018 is to ensure safety, security, maintenance of facilities, and preservation of the environment to enhance freight mobility (McKenna, 2005).
Active Transportation (Bicycle and Pedestrian Planning)
DHL aims at the improvement of its transportation system that will create a variety of travel choices while at the same time helping in the preservation of the quality and open space of the environment. In achieving these goals, DHL’s TIP named Transportation 2018 looks forward to introducing pedestrian and bicycle transportation to facilitate or aid in the delivery of services.
Air Transportation Planning
DHL is involved in myriads of activities related to the improvement and development of its air transport systems. DHL’s TIP Transportation 2018 entails airport ground access plans, air cargo plans in all its markets, and cooperative efforts with global aviation companies to ensure long-range airport capacity (McKenna, 2005).
It should be noted that successful implementation of freight mobility enhancement plans involving assurance of safety, security, maintenance of facilities, and preservation of the environment to enhance freight mobility would improve current, and future freight flows.
Liu, J., & Wen, Y. (2012). Study of Competitiveness: A Case Study of DHL. Available online at: http://www.diva-portal.org/smash/record.jsf;jsessionid=nSkn629oMfmjsjivjKAd2JYsB0X5W8NJgTADuttn.diva2-search7-vm?pid=diva2%3A545580&dswid=-9955
McKenna, E. (2005). DHL delivers new hub. Traffic World, 269(38).
Pasiuk, L., & Vault (Firm). (2006). Vault guide to the top transportation industry employers. New York, N.Y: Vault.