Operations Strategy In DHL: International Supply Chain Management

Decent Essays
In a continuing developing world with a technologically advanced market place, many organizations attempt to gain its own competitive advantage through their own operation strategy. Competitive advantages through operations can be identified as four main factors as differentiation, cost leadership, response and focus. Nonetheless, in DHL, their main operation strategy can be identified as an international supply chain management and global logistics solutions.
DHL’s supply chain and logistics include origin management, freight management via all available transportation, final destination management and providing supply chain consultation to the other industrial giants. The strategy is driven by linking origin supply chain to the required market destination which leads to high efficient reserve of supply and cost effectiveness.

3.1 Differentiation
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A successful attempt to differentiate from the competitors by conceiving things that are unique to the organization can generate a successful targeted revenue while gaining the industrial lead. According to the porter’s differentiation, price sensitivity can be reduced due to brand loyalty by the customers providing higher competition to the competitors. In addition, band loyalty by customer reduces the necessity for new rivalries to enter to market place having difficulties to overcome the uniqueness of the product or service.

Differentiation enable to achieve the supplier power, upon brand loyalty that simply mitigating to gain the power to hold the buyers as the buyers have less option industry, leading to lower price sensitivity. There are several factors attributing to differentiate can be recognized as brand image, design, unique offered features in a product or service. Customer assistance and finally with rising advance

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