Dhl Logistics
TRP Report DHL LogisticS Mbab 5P07
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professor Yoogalingam
Table of Contents Executive Summary 3 Introduction 4 Literature Review of Facility Location Decisions 5 Implications for DHL 10 Recommendation 13 Conclusions 14 Bibliography 15
Executive Summary
The following analysis will take an in-depth look at the facility location decision making process. This decision is extremely important for many organizations and can provide a strategic advantage in terms of cost savings as well as ability to service customers. The location decision is a key part of the supply chain and as such must be well thought out. In order to fully understand the tasks and decisions involved it was important to first look at a variety of literature on the topic. The literature review goes through many academic articles to find the important factors and models that are involved in the facility location decision making process. It discusses qualitative factors such as land, labour, capital, markets and sources, as well as quantitative factors which identifies three quantitative models that can be used to assist in the decision. These models are the fuzzy clustering model, the analytical hierarchical process, and the geographic information system. The literature will then be applied to DHL which is the largest global logistics specialist company and supply chain solutions provider. The qualitative factors that DHL uses will be identified and discussed in more detail. Further, a recommendation will be given to DHL in order to improve their facility location decision making process. The recommendation is to incorporate the geographic information system in their decisions making process.
Introduction Every brick and mortar business involves a facility location
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professor Yoogalingam
Table of Contents Executive Summary 3 Introduction 4 Literature Review of Facility Location Decisions 5 Implications for DHL 10 Recommendation 13 Conclusions 14 Bibliography 15
Executive Summary
The following analysis will take an in-depth look at the facility location decision making process. This decision is extremely important for many organizations and can provide a strategic advantage in terms of cost savings as well as ability to service customers. The location decision is a key part of the supply chain and as such must be well thought out. In order to fully understand the tasks and decisions involved it was important to first look at a variety of literature on the topic. The literature review goes through many academic articles to find the important factors and models that are involved in the facility location decision making process. It discusses qualitative factors such as land, labour, capital, markets and sources, as well as quantitative factors which identifies three quantitative models that can be used to assist in the decision. These models are the fuzzy clustering model, the analytical hierarchical process, and the geographic information system. The literature will then be applied to DHL which is the largest global logistics specialist company and supply chain solutions provider. The qualitative factors that DHL uses will be identified and discussed in more detail. Further, a recommendation will be given to DHL in order to improve their facility location decision making process. The recommendation is to incorporate the geographic information system in their decisions making process.
Introduction Every brick and mortar business involves a facility location
Bibliography: Bible, D. S., & Hsieh, C. (1996). Warehouse buildings and geographic information systems. The Appraisal Journal , 64 (4), pp. 416-422. Bourn, M. (2003). Corporate Incentives. World Trade , 16 (7). Deutsche Post DHL. (2011). Annual Report 2010. Bonn: DHL. DHL. (2011). Company Portrait. Retrieved March 16, 2011, from DHL: http://www.dhl.com/en/about_us/company_portrait.html DHL Consolidates in Atlanta DHL Relocates Los Angeles Facility. (2005). Traffic World , p36-36. Esnaf, S., & Küçükdeniz, T. (2009). A fuzzy clustering-based hybrid method for a multi-facility. Springer Science+Business Media, LLC. Fariborz, Y. (2006). An analytic model for locating facilities strategically. Omega, The International Journal of Management Science , 34, pp. 41-55. Florida Shipper. (2008). DHL expands in Toronto , p14-14. Jedd, M. (2002). Seeking Infrastructure. Logistics Management , 40 (12). MCKENNA, E. (2005). DHL Delivers New Hub. Traffic World , Vol. 269 Issue 38, p38-38, 1/2p. Melo, M. T., Nickel, S. M., & Saldanha-da-Gamma, F. F. (2009). Facility Location and Supply Chain Management - A Review. European Journal of Operational Research , pp. 401-412. Mentzer, J. T. (2008). 7 Keys to Facility Location. Supply Chain Management Review , 12 (5). Yang, J., & Lee, H. (1997, October). An AHP decision model for facility location selection. Facilities , 15, pp. 241-254.