Executive Summary:
This report will conclude the successful operational functions and strategies used by DHL located in Barking, London. Throughout the report I will analyse DHL strategies and what I think can be improved. This will be done through recommendations and effective analyses, I will also be looking upon any operational issues within other branches across the UK region.
DHL is a courier company whom aims to deliver products to customers doors sent from a supplier. This is done on a global scale as it is an international business and parcels come from all over the world to be shipped elsewhere through DHL. The company is faced with many competitors such as Royal Mail and UPS, however DHL low cost and quick deliveries that comes with live online tracking methods is what keeps customers loyal. Nonetheless, DHL is keeping competitive through technical innovation, DHL needs to ensure their operational functions and company values are clear and the same.
After carrying out multiple interviews on customers, employees and two managers it was evident that there were different aims and needs from the three categories. However, they were all clear on that they wanted parcels to be ‘delivered on time’, their Order Winners and Qualifiers were completely different in the results gathered by the surveys. While management and employees most common Order Winner was how long it took for the parcel to be received, for the customers it was customer service. For Qualifier, the most common answer from management and employee was price, for customers it was past experience. Unfortunately, it is clear that the DHL employees are working on the wrong aspects of customers wants and needs. Throughout this report I will be including recommendations on how DHL can ensure customers need are met and maintained.
However, the main focus point of this report is to ensure DHL are using successful operation strategies to prevent any future disruptions. This includes any contacts they hold with other international business like NEXT and KFC. After speaking to employees at KFC after the incident of DHL not getting chicken out fast enough to KFC stores resulting in partial closure, DHL needs to provide a better customer service as employees were not happy as they were not sure on when they will ‘be working next due to DHL failure to provide our goods’. After such a major incident there are some precautions DHL should evaluate and also consider changing some operational functions for the future, such as:
• Improve delivery service on orders that are to be shipped on a wide scale
• Improve communication with companies who are expecting a large order
• Consider external sources to help carry out deliveries during peak times
• Hire more transportation units to carry out deliveries
1. Introduction:
DHL whom is one of the world’s leading courier service has been a successful company since 1969. After facing major competition from competitive rivals, DHL strived through the difficult times and continued to operate successfully. The success came from successful market research, excellence organisation performance and idle operational strategies. In this report I will providing primary and seconding research to aid the businesses performance and improve DHL operational management.
I will demonstrate my findings through diagrams, primary and secondary research and use of questionnaires/surveys. Nonetheless, from these findings I will also be providing recommendations on what to improve on, how to improve it and why it is beneficial to the business. These recommendations will come from analysing the business both inside and out. Furthermore, I will also carry out an observational survey to view employee engagement levels and customer relationships.
2.0 Methodology
2.01 Methodology with Staff
Throughout the DHL branches similar techniques and approaches are used in order to communicate with staff and to track customer feedback. After analysing DHL branch in Barking who hold a contract with NEXT and Bath store it was clear what communication methods were used for staff. In the morning staff will come to the main desk to gather information and documents on their daily routes, this is where the opportunity was to communicate with managers and supervisors and solve any issues they may have. Staff were also provided with mobile phones to call the office throughout their shifts while on route. Management made it a priority that someone was always available to pick up the phone, however the real case is that this didn’t occur all the time. Therefore, leaving delivery drivers in a vulnerable position as they may not be able to carry out a delivery without vital information or some simple help. An example of this is when a Bath Store driver was unable to find an address due to it being a new build, he had called into the office to try and find the location of the customers house however no one answered the phone. Resulting in the items not being delivered, leading to a disappointed customer whom is less likely to carry out a repeat purchase of DHL service, resulting in a decrease in profit.
However, DHL does provide other ways of communicating throughout the business such as:
• Notice boards
• Weekly newspaper
• Staff emails
• Note messages in driver’s routes
• Text messages to company phone
• Online chat
2.02 Methodology with Customers
DHL tries to maintain a good level of communication with customers throughout their duration of using their service. This is done through providing an online tracking method that allows customers to follow their parcel from the sender to the receiver. However, if a problem does occur DHL provides other ways of communication such as online enquires or a help line for parcels going through UK Mail whom are partnered with DHL. Some other forms of communication for customers are:
• Online enquires
• Service updates
After analysing these methods, it was clear that the service was poor and slow. Also, being technology based it deter some customers as it was ‘way out of their league’ as it appeared to be too difficult for them to use. Although the service provided was good with 24 hours live tracking, it was only poor when issues had occurred. One major issue that I realised after carrying out some research is that customers are not able to contact DHL directly or at all times. Compared to competitor UPS, who have assistance from 7am to 12am and a 24 hour pick up help line. Allowing business lifestyle customers to get help when they have spare time. Unfortunately, DHL will not be reaching this target market as service and help cannot be provided to those when needed, resulting in a decreased market share and reducing the chance of becoming a market dominator.
2.03 Methodology with Stakeholders
While interviewing the operations manager at Barking, Mark Whiks, it was clear that they also took stakeholders into account with key decision making. Such as debating the amount of deliveries staff can do in a day and ways to improve efficiency. Mark told me that DHL organises a meeting with contractors and investors at least four times a year. This provides the stakeholders with the opportunity to revise contracts and make any key changes. However, DHL also provides a monthly qualitive and quantitative feedback sheet to all stakeholders twice a year to inform them on how the business is doing both on DHL behalf and the contractors behalf.
I believe these forms of communications between stakeholders and DHL is very effective as meetings are held regularly and contact is available throughout the whole year. Resulting in no key changes having to be made apart from maintaining a high level of communication. Other objectives within this category are:
• Increase online sales
• Accelerate high priority lines to store
• Improve sustainability