11/12/13
Assignment #3
Case Study from Chapter 3: DHL, FedEx, and UPS: Shifting fortunes in the global logistics services industry
I have been told you where sent here to speak with me in hopes to better understand the shipping industry among DHL, FedEx and UPS. Unfortunately I don’t normally consult with people in this area, but I did a little research to hopefully help you out some. From what I could find the shipping business revolves almost 100% around the economy’s health, such as how stable it is or whether an area is going through a rough patch like a recession. But because of such hard times for the economy, business in the shipping world has declined because people are not buying as much and companies are keeping inventory low. This type of impact has hurt DHL to the point of them pulling their services out of the U.S. All they offer for us now is their Global Mail Division. But overall, it just looks like a company like these 3 are only going to do as well as the economy is doing. I do apologize for not being 100% clear on what you’re looking for. But I think I have something that should help you out. I visited the local college and asked to borrow a copy of their International Business books in hopes to find some answers. And as I thought they had a whole section for just this topic, so I am going to go through some of the questions I found in the book. The first question asked to describe the various services provided by logistics service providers and what the role of those services in focal firms value chain activities? What I found out was these areas include companies that move raw materials, finished goods, packages and documents across the globe. Another question asked was what factors do focal firms consider when choosing one logistics service provider over another? I know personally if I were the one looking into shipping an item to say Costa Rica, I would want to know several different factors. I would want to know the price