DHL Global Forwarding (DGF) Case Study - Management Assignment Help

Assignment Task:

Task:

On the evening of October 13, 2015, Amit Datta, regional director of DHL Global Forwarding (DGF), was gazing out the window of his office in Bengaluru, India. His day had been very hectic, and his last meeting, which was about DGF’s consolidation program, had run for two hours. DGF provided air and ocean freight forwarding services. In September, Datta’s team had successfully tested the consolidation program in three Indian cities: Hyderabad, Bengaluru, and Chennai. In the last meeting, three months ago, the team had suggested that Datta consolidate shipments from individual clients in the respective city. Such aggregation helped DGF to get cheaper shipment rates from airlines. While glancing through the respective consolidation teams’ reports, several questions occurred to Datta: Was DGF paying more to airlines on specific days of the week in these three cities?

COMPANY AND BACKGROUND
DGF was a division of Deutsche Post DHL Group, and was the top forwarding agent worldwide.1 DGF’s recent global growth had been momentous, with the introduction of a new multi-modal service between China and Japan.2 In 2015, DGF had cumulative revenue of €14.89 billion and operating profit of €181 million (see Exhibit 1).3
DGF was the market leader among the many forwarders operating in India, which included companies such as Kuehne+Nagel, DB Schenker, Agility, Nippon Express, Expeditors, Panalpina, Dachser, Toll Global Forwarding, Damco, CEVA Logistics, Jeena & Company Private Limited, Om Logistics Ltd., Express Cargo Containers, and LCL Logistix. Most of these forwarders operated worldwide, but some (e.g., Om Logistics Ltd., Express Cargo Containers, and LCL Logistix) concentrated mainly on the Indian market.4

THE CONSOLIDATION PROGRAM
Datta and his team specialized in consolidation of the orders at DGF, and assisted clients on a daily basis. A typical weekly dispatch schedule was made available to all clients (see Exhibit 3). This document depicted the company’s turnaround times. For instance, if a shipment was delivered to DGF on day one, the same shipment would be dispatched on day two (the next day). However, if day two was a holiday, then
 the shipment would be dispatched on the subsequent business day.

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