DHL Express GIS Solution free essay sample

DHL was an innovative leader in the worldwide shipping business for many years. The company joined in Deutsche Post which is modern privatized German mail service. Deutsche Post made Airbone Express to join thier company and integrated Airbone Express in to DHL. By this way, Deutsche Post created DHL Express in 2003. DHL Express is a large company, which employs 550. 000 people and manages the shipment packages and goods in 220 countries and territories. In this case, DHL Express seeks for an improvement focused on Pickup and Delivery System in Sweden. Due to DHL Express’s system in the case, drivers of fleet were spending average 30 minutes of their shift for adjustments, which is an valuable time for a large company such as DHL Express. 2. Problem of The Company DHL Express always on lookout for improving their business. In the case, the company tackled the challenge of streamlining their Pickup and Delivery system in Sweden. We will write a custom essay sample on DHL Express GIS Solution or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In sweden DHL express Operates 1. 400 vehicles. PuD represents 40% of the total cost of DHL’s daily operations. Every morning, DHL drivers were spending 30 minutes of their time on tour sorting goods that needed to be delivered. At that time packages were being sorted by postal codes, resulting in piles of shipments shared by four or five vehicles. Drivers were speding time looking though piles, then they were moving the packages to their gates. Which means, Long searching time Long loading time Hence, too much room left for human error. 3. Solution DHL Express choice was ESRI Geographic Information System software to improve sorting and sequincing in the loading area. Software is using a mainframe enviroment. By this way, DHL Express will be able to allocate resources through the Web to each terminal. Staff members will be allowed to use ArcGIS (GIS software’s name) to manage routes and stops. Also,staff will be able to edit geographic data when its needed. Whereby,all sequincing is done at night. ArcG? s Works in several steps, Data entry staff enter the information fort he next day’s deliveries into the main computer system Information is loaded into ArcGIS server ( where shipment adresses are geocoded and checked against a map to determine the zone to each shipment belongs) Zones are created based on routes and drivers These zones are clustered and optimized into tours based on allocation rules and driver input. Lastly, delivery notes and sort code file synchronized with shipments. 4. Benefits Deliveries are placed at the correct gates by the time drivers arrive at the terminal. Being able to optimize the number of tours per terminal help DHL minimize its fleet and driving distances of each vehicle. Optimizing routes daily reduces the effort and resources needed during peak shipment periods. 5. Results Now, DHL express is able to sort to each particular tour instead of a larger, less specific postal code. Whereby, they reduced the time spent and manpower needed to sort, search, and sequence the loading area by 50% which means time savings are equivalent to 30 minutes per tour per day(600 man hours each day) . As a result, DHL Express opreates 1200 tours per day from terminals. DHL Express created an optimum network by using ArcGIS, this lowered total transportation cost and minimized the distance driven by each vehicle. Optimized tours also lowered Pickup and Delivery and fleet cost. By ArcGIS, correct prices and delivery time Windows can be given to clients, which increases satisfaction and fosters customer loyalty. To sum up; Bottom line results are increased Service to customers improved Accurate drive times decreased Company’s impact on the enviroment is lessened.