UNIFICATION centrally and the organizations have high

UNIFICATION operating
model is more suitable for DHL Express as according to this model organizations
need to have globally integrated systems and processes. All the decisions related
to organization are made centrally and the organizations have high business
process standardization. This model suits the DHL Express because it also wanted to have global process standards
to meet customer requirements. They were aware of the challenges they would
have to face in maintaining these standards as every country has its own
customs framework to be followed regarding express industry. In 2003, after the
Airborne acquisition, DHL faced immense losses in the domestic US market and
thus later in 2009 decided to exit the US market and focus on their core
competency, i.e., the international express business, where they had a good
hold of market all around the world. But after exiting the US market their international
business was also not operating “at par” in US as they had always focussed US
as a domestic market and thus limit it from the processes of international market.
This was the time when they decided to implement global standards to the US
market also. This transformation leads a new way of processing the shipments throughout
the world with EGAP standards. Through this transformation they were able to
maintain well documented DHL sales processes along with the details like number
of phone calls and visits that a customer should receive, maximum number of
customers in a territory, etc. and educated the sales force on the above
indicators thus evolving as a more formalized organization. Through this change
the EGAP standard required all the customer-related data to be present in one
place, the so called “customer master file” rather than storing at different
places. After this transformation the number of customer accounts reduced from
3.6 million to 316,000. This made more transparency on to how to work more
efficiently to achieve customer expectations. DHL also implemented a Certified
International Specialist(CIS) training program under which it trained its employees
on the fundamentals of international shipping, import/export regulations and transport
regulations and processes. With the successful implementation of the above
standards in US which led to then declining revenues in US to change to a profitable
market, they decided to implement these standards globally and started with
Canada in 2011. They exited the domestic business and introduced the EGAP
standard processes for international shipping. They planned to move 28 European
countries to the EGAP standards by 2016

Few of the main processes at DHL Express are:

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1.       Customs Services, Security and Insurance: Being
an international shipment company it needs to take care that the shipment follows
custom rules and regulations of a country and thus manages all queries from the
custom authority. They make ensure that customers customs paperwork is complete
and accurate else the shipment will not clear customs. Also, they assign
commodity codes to certain goods shipped which are pre-defined customs regulation.
They provide with Import and Export clearance, clearance authorization by
checking that the customs paperwork is flawless for every shipment. They ensure
complete security while shipment moves across international borders and also
provide insurance against any unforeseen events.

2.       Shipping and Tracking Details: They are
promised to provide a good customer experience. Thus, they maintain a track of
every shipment by assigning it a unique shipment code for the customer to track
it. The unique code is provided to the customer through a message once the shipment
is ready to be shipped. It gets scanned at every hub it reaches before
connecting it further to maintain tracking information at every point for the
customer. They also make sure through this tracking detail that the shipment
reaches the destination either before time or on stipulated time.

3.       Freight Transport: They are promised to
deliver shipment between any two countries and thus deliver good of any kind to
any place via air, ocean, rail or road. In every mode of transportation, they
have different priorities that can be selected based on the urgency of delivery
of the package/shipment.

4.       Warehousing and Distribution: They
provide warehousing and distribution operations for almost all the industry
sectors to ensure that customers can deliver their service throughout the
world.

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