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Transcript of Dhl Report
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NAME: Saad Sohail ID NUMBER: 2007-01-74-8135
CONTROL NO: MAJOR FIELD: MKT
COMPANY WHERE INTERNSHIP WAS SERVED: DHLGlobal Forwarding Company
DURATION: From 15th June, 2010 to 26th July, 2010
REPORT BASED ON :( Tick) Option 1 _ _________
Option 2 __________
DUE DATE OF THE REPORT: 10th August, 2010
(2 weeks after the successful completion of internship)
REPORT SUBMITTED ON: 18th August 2010
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TABLE OF CONTENTS
FUNCTIONS OF THE MARKETING AND SALES DEPARTMENT.........................3
CORPORATE GOALS OF DHL......................................................................6
LINKING FUNCTIONS WITH THE CORPORATE GOALS....................................7
THE WORK I DID IN THE DEPARTMENT.......................................................8
ROTATIONINTHREEMAJOROTHERDEPARTMENTS /PRODUCTSOF DHL GLOBALFORWARDING.......8
WORKEDON SALESDEPARTMENTS METASHIPSOFTWARE...................................................10
HANDLED CUSTOMER QUERY.........................................................................................10
VISITED DHL WAREHOUSES..........................................................................................11
PREPARINGCONSOLIDATEDOUTSTANDINGINVOICESREPORT................................................12
HANDLINGA LCL SHIPMENTPROJECT..............................................................................12
CASE HISTORY........................................................................................13
A.STATINGTHEISSUE:.................................................................................................13
B.SCOPEOFTHEINQUIRY: ........................................................................................... 14
C.DATA PRESENTATION / ANALYSIS:...............................................................................15
D.CONCLUSION:..........................................................................................................21
Department: Marketing and Sales (M&S)
Supervisors Name: Mr. Wamiq Nazar
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Designation: Director Commercial
Duration: 15th June 2010 to 26th July 2010
FUNCTIONS OF THE MARKETING
AND SALES DEPARTMENT
Some of the main functions of the Marketing and Sales department are:
Customer Touch
Business Negotiation
Business Contract
Booking Handling
Customer Services
Accounts receivable management
Business Relationship Management
Customer Touch: This is one of the major functions of marketing and sales
department from where their operations mainly start. Marketing and sales
team is responsible to keep in touch with the active and non active
customers both.
Sales person looks for the prospects (importers and exporters) through
different channels. Then they go for the selection process that is which
prospects to target. After the selection is finalized they contact them by
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several means in order to identify their needs and requirements. And finally
under this function they offer their services and rates at the customers end.
Business Negotiation: This function of the department starts after the services andrates have been offered to the customers and they provide feedback to marketing andsales department. Each and every member of marketing and sales team inevitablyrequires this tool of negotiation at any cost. As with this tool they conclude deals andcontracts with the customers. And DHL doesnt believe in loosing even a single potentialcustomer at any cost.
Business Contract: After a successful negotiation phase marketing and
sales team concludes contracts that are the legal bindings between DHL andtheir customers. These contracts includes all the mutual agreements that
takes place like rates, service agreements, credit limits and so on and so
forth. It varies from customer to customer, some require shipment to
shipment dealings and some require extended period contracts. Contracts
are mainly the requirement of multinationals that are service conscious and
not rate conscious. Contracts can be on monthly, quarterly or yearly basis.
Booking Handling: Once the business deal has been finalized, there is a
consensus on the rates and services level. Customer places booking to oursales and support team, which is communicated to the operations to book the
cargo with the carrier (it can be an airline or a shipping line as per the
requirement). Once the operation gives us the feedback and the booking is
finalized, the confirmation is sent to the customer from the sales support
people. And the customer is also timely updated if any variation in the
schedule takes place.
Customer Services: This function again holds immense importance and is
also regarded as sales support. It ensures that all the customer requirementsshould be met with precision and to make sure that IOP (Internal operating
Procedures) and SOP (Standard operating procedures) are both religiously
followed. IOP is within the organization so is between the sales support team
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and the operations department in DHL. Whereas SOP is between
departments sales support team and the Customer. These operating
procedures are followed in order to provide their customers with the best, as
customers are considered as one of the biggest assets holding the pillars ofDHL.
Accounts Receivables: In this function sales department needs to make
sure that all the payments received from the customers are received within
agreed credit days allowed to the customer. This is all done to have a closely
monitored Accounts receivable management. For this purpose a weekly
meeting is held between finance and sales department to update the
outstanding invoices status to the finance department.
Business relationship management: Sales and marketing teams ultimate
goal is to retain the customer that is already on board. But they always try to
explore more and more opportunities. They can explore it horizontally or
vertically with the existing customers.
Horizontal: If existing customer is dealing in ocean freight from china
to Karachi, so horizontal expansion would be that they do more ocean
freight deals from other countries to Karachi as well.
Vertical: Here if customer is doing ocean freight dealing so afterexpansion they deal in air freight business as well.
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Corporate Goals of DHLThe success story of DHL organization can easily be portrayed from their goal
of making their customers, employees and investors more successful. DHL
ultimately aims at becoming the first choice for its customers, employees,
and investors. That means, whenever a customer thinks of getting services
of a forwarding company , or an employee thinks of getting into a successful
organization or an investor thinks of a profitable organization to invest in DHL
should be the first thing in their mind.
The focus of First Choice is putting customers first. DHL has developed
processes to help them better understand the needs of their customers and
they have implemented measures to increase and improve the level of
customer focus within the company. Here are some of the most significantbenefits for the companys customers:
High-quality processes and services geared toward customers' real
needs
Simplified and streamlined services and improved customer
interfacing, making communication and cooperation with the customer
easier
A holistic and systematic approach to solving and rectifying service-
related problems/shortcomings
Tangible and quantifiable service improvements with added value for
the customer and the customer's business
An enhanced customer experience that builds trust and strengthens
customer loyalty
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The goal of First Choice is to become the "first choice" for the companys
customers worldwide. DHL wants to make its customers' lives easier, and in
order to do this, Deutsche Post DHL must provide top-notch service in all
segments of its business.
Linking Functions With The
Corporate Goals.
All the major functions discussed above from customer touch i.e. the starting
point of reaching a customer, till the function of business relationship
management where sales team explores new opportunities with thecustomer on board. All of these work in becoming the provider of choice that
is when a customer thinks of a forwarding company, DHL should be the name
in their mind. This is made possible due to the sales departments continuous
efforts of customizing innovative solutions that meet their customers needs
and move their business. Marketing and sales department believes in seeing
through the eyes of their customers and look for ways to simplify their lives.
Therefore, all these efforts pave the way for a major objective of provider of
choice to be achieved.
Then for the employer of choice, DHL believe employees are the internal
customers and they should be well motivated to perform at their maximum
potential when dealing with the external customers (which is the main job of
marketing and sales team.)
To adopt this in practice DHL origin office sends a DENSALEZ report weekly to
all the regional offices. It summarizes the performance of all sales persons,
telling if theyve reached the target given to them according to the KPI (key
performance indicators) and then are given incentives accordingly. All these
practices make potential employees keen to work in DHLs professional
environment and thus making it the employer of choice.
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For the objective of being an investment of choice, they build in trust in the
investors about DHL capabilities of managing investors money most
efficiently. In sales department, the function of efficient Account receivables
management and extensive negotiating skills of their sales team makes thecorporate objective of being investment of choice achievable.
The Work I Did In The
Department.
Rotation in three major other departments
/products of DHL global forwarding.
These departments represent the products of DHL that it offers to its
customers. I had to spend 2 days each department in order to get an insight
of the products and services it offers. This was due to the fact that being part
of marketing and sales department, I couldnt market or sale the products
unless I knew them. My department provided me with the questions I had to
inquire from each department I was rotated to.
The departments I was rotated to were:
1. Air freight (Exports and Imports) headed by Mr. Wahid Khan.
The concepts I cleared in the air freight department were:
-Complete process flow of air freight operations
-Documentation required at every stage of the operations
-Difference between gross weight and chargeable weight
-Types of aircrafts
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-Airlines in Pakistan
-Consolidation / deconsolidation (bulking / break bulking)
2. Ocean freight (Exports / Imports) headed by Mr. Zain Abbas
-The concepts I cleared in the ocean freight department were:
-Complete process of sea freight export/import shipments
-LCL/FCL shipments
-Calculating volume of shipments
-Types of containers
3. Customs and Duties Zone (Exports/ Imports) headed by Mr. Ovais Amir
-The concepts I cleared in the ocean freight department were:
-Complete custom clearance process for imports/exports.
-GD (goods declaration) filing
-Invoicing
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Worked on Sales departments Metaship
software.
This is a contract management network for sea freight rates. Here all the
countries regional offices do contracts (submit their rates) to the DHL origin
office, Singapore. Then offices in all countries refer to these metaship rates
to give selling rates to their customers.
I got a chance to work on this Metaship, taking out rates for the customer
queries assigned to me. Customer asks for rates for all the desired ports
available, for e.g. a customer in UAE asks rates for UAE to Karachi port, UAE
to port Qasim. And then the customer chooses the best rates and the
destination they require.
Handled Customer Query.
After studying the tree major products (departments) of DHL global
forwarding, I was assigned a task to entertain customer queries that came
online in our marketing and sales department. The queries came in from our
origin office or directly received by our sales representatives. I was suppose
to go through the queries, look for the all the details/requirements of the
customer for their particular shipment. And to make sure that the mandatory
details arent missing or we are not able to work on an incomplete query.
Then using the details we confirm the rates to be given to the customer from
the origin office, where they see if terms and conditions are appropriate and
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the profit margin is adequate to. After this we finally quote the rates to the
customer.
Visited DHL warehouses.
Apart from freight forwarding services DHL even provides very professional
warehousing services to some of the major companies in Pakistan.
Following are the brief details of warehouse experience:
- Ericson warehouse Mr Wali Uddin (warehouse manager)
Here two main projects are handled C.M Pak Zong and Warid telecom.
Ericson is DHLs customer and these two are Ericsons customers so theirmaterials are kept as well.
Here efficient inventory system, customized services and 100% accuracy
are the requirements of the customer.
- Unilever Warehouse Mr. Sikandar Ali (Warehouse Management)
There is proper WMS i.e. warehouse management system wherewhatever coming in from all the factories of Unilever is very
systematically assembled in the warehouse.
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There is transport department where arranging transport to all the
distributors on daily basis is handled.
There is a WM300 system used for locating where goods are kept.
Preparing consolidated outstanding invoices
report.
Its the accumulation of whole months invoices of a particular customer.
This is done to make sure that no invoices are missed and due payments are
received on time. This is done for the ease of the customer aswell.
Handling a LCL shipment project.
DHL planned to launch a LCL (less than container load) box services to
Germany. Here they planned to target all those customers who dint have full
container load shipment but required less than container load i.e. box
services.
Here the initial task was to do the product design and determine the target
market. For product design it was required to come up with rates that are to
be offered to the customers, and then the cargo consolidation details were
to be finalized. Cargo Consolidation refers to different shippers bringing in
their goods; after goods being checked and measured all are packed in
separate boxes but stored within a single container. Now the main challenge
was to determine the target market. I was provided with some raw database
containing list of potential customers who engaged in LCL shipments on
regular basis. I firstly had to identify the potential customers according to
their locations i.e. Karachi, Sialkot, Lahore, Islamabad and so on. This was a
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tedious task, where customers were identified using Google website and a
special directory software containing details of major exporters/importers in
Pakistan. Major constraint was faced for a newly formed company which
wasnt available in the directory because of it being a bit obsolete. Now thenext step was to contact the customers, where I was suppose to give some
general details of the LCL shipment for e.g. date the shipment will be
released and what minimum weight a shipper must have. Then after I
sensed that the customer is interested in the shipment, I handed over the
customer to any sales person available in the office. Then that sales person
had the task to give the further information to the customer and try and
end up with a deal using their negotiation skills.
CASE HISTORY
A.Stating the issue:
DHL global forwarding company Pakistan had no proper marketing
department till MAY 2010. Being a multinational this issue of having no
proper marketing operations might sound weird but its a fact. Thedepartment as its name suggests is divided in two major fields Marketing
and sales. Now DHL dealing in logistics industry is considered to be a B2B
i.e. business to business company and not a B2C i.e. business to Consumer
Company.
Because of this fact following is the division of the operations level of both
the fields in the department:
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MARKETING AND SALESDEPARTMENT
MARKETING(20%)
SALES
(80%)
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The above division shows the low level of marketing operations that must
have been taking place in the company. And this was no doubt due to lack of
need otherwise DHL compromises over nothing as it aims to be the first
choice of it customers at the end of the day. Being a B2B company and
moreover a market leader in the logistics industry, there was hardly any need
to reach out other businesses that are actually DHLs customers.
But there came about circumstances where a proper marketing department
became inevitable. Currently DHL Company is in its growth stage, where its
products are growing, its market share is growing and also its customers are
growing on day to day basis. At such a critical stage it becomes the need of
the hour to have proper marketing department to do proper branding, PR
(public relations) and advertising.
B.Scope of the inquiry:
1. Head of Marketing and Sales department: Mr. Wamiq Nazar
Being the head of department and serving in the Marketing & Sales
department of DHL for years he was the right person to start with. He
gave me the whole insight that how marketing was just a negligible
part in the department where as they mainly concentrated to excel in
the sales are. The whole process of assessing the need for a proper
department and then what steps were taken to come up with one were
discussed.
2. Assistant Manager Marketing communications: Mr. TalhaJamal
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He is a MBA (marketing) from our institute of Business Management.
He joined DHL as a management trainee and served in several
different departments to know about the detailed operations of the
company. He was appointed as the Assistant Manager MarketingCommunications to look after the operations of the newly formed
marketing department. He was a major source of information for how
the DHL organization was growing with the help of the marketing
department.
3. Published Materials: DHL monthly newsletter
This was a major source of detailed information about the activities
marketing department was going through. Most of the data in the data
analysis part is from this source. It provided with exact quotes that
were relevant for this case discussion.
C.Data Presentation / Analysis:
In this part of case discussion Ill be talking about the steps that were made
to overcome the prevailing problem of no proper marketing department in
the organization.
First of all after the need for a proper marketing department was assessed,
some professionals were required to run a department. Now for this purpose
internal hiring was a better choice, as an internal employee would have
known more about the operations of the company than a new comer. Only a
single person but a very capable was internally hired to manage the
operations of the newly formed department in May 2010. It has been few
months only and the marketing department is working way efficiently and
taking DHL global forwarding closer to even greater heights of success. Up till
now the department has been involved in areas like CSR activities, PR, and
advertising DHL global forwarding on large scale. Efforts made in all of these
areas are briefly discussed below.
CSR (Corporate social responsibility) Activity
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This was the first major attempt that the marketing department made to
make DHL global forwarding more visible in the market. DHL worlds leading
logistics company celebrated Worlds Environment Day on June 27th 2010,
with employees of DHL global forwarding Pakistan Ltd. engaging in anextensive clean-up of sea view beach early this morning (at 10:00 am).
Imran Shaikh, Managing Director of DHL Global Forwarding Pakistan Ltd. said,
Corporate responsibility is a core element of DHLs corporate strategy,
implemented through the program GoGreen (which focuses on environment
protection), This means as a company we act responsibly in the way we treat
our environment we work with while striving for business success at the same
time.
Aligned with the commitment to GoGreen, the employees of DHL Global
Forwarding Pakistan helped to clean up the beach of Karachi, even the public
came forward asking if they could lend a hand. This is how DHL decided to
hold a beach clean up to commemorate World Environment Day this year. It
also gave karachites who were keen to contribute a chance to undertake
beach cleaning with DHL employees in an organized and fruitful manner. This
way DHL was seen as a very environment friendly organization by the people
around and helped DHL receive a lot of positive exposure in public.
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PR (Public Relations) Activity
Public Relation is a field concerned with maintaining public image for high
profile people, commercial business and organization, non-profit associations
and programs. DHL Global Forwarding Pakistan recently made such effort of
PR activities, where they used the method of associating itself with highprofile personality. For this DHL invited Naseem Hameed, the fastest woman
of Asia to a special event which was specially arranged in her honor held on
August 6th 2010.
DHL the worlds leading Logistics Company invited Pakistans overwhelmed
athlete Naseem Hameed the fastest Woman of Asia to a special event
which was specially arranged in her honor August 6th, 2010 at 4:00 pm. at
Head Office, Karachi.
The managing Director, Imran sheikh praised the athlete and said that, Ms.
Naseem Hameed symbolizes a great motivational force who has overcome all
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possible hurdles to first become the flag bearer for Pakistan at an
international level and then achieve her goal of being the best in her field.
After which Ms. Naseem addressed the attendees and and shared her
journey, of struggle and persistent hardwork, till the time of her achievement,with the management and employees of the company to further boost their
morale and efficiency. Mr. Imran sheikh, MD, then presented her the Best
Athlete of 2010 award.
This special event constituted a part of the companys ongoing endeavors to
further improve its performance by motivating its employees. The company
was proud to hold a track record of being a role model in the industry. This
strategy was premised on the belief that employees play a crucial role in the
efforts to transform the business, setting the standards of excellence for anyindustry and this event by DHL commemorated them all for their efforts and
hard work for the same.
At the event DHL even made an association with the fast speed of the
athlete, Naseem Hameed and that of DHL Global Freight Forwarding services.
It was no doubt a remarkable portrayal of the professional services that DHL
provide, giving its customers the picture that their freight gets handled in themost efficient way by DHL. It even gave a boost to the motivation of the
employees, giving them sense of achievement for being associated with such
an organization. Conclusively this PR activity helped in building rapport with
the employees, customers, investors and even the general public.
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Advertising DHL Global Forwarding
One of the other major efforts recently made in the marketing department
includes the decision to advertise DHL Global Forwarding in the DAWN
newspaper, one of the leading newspapers in Pakistan. This was finalized in
June and came into effect from last month July 2010. The idea was to put to
put up latest offers that DHL Global Forwarding Pakistan has at its end. And
the first press marketing was done for the launch of new direct LCL (Less
than Container Load) service from Karachi to Hamburg, Germany. Operated
by Danmar Lines, DHLs in-house carrier, the new service was to facilitate
trade between Pakistan and the Germany and intend to offer customers
reliable and cost-effective services with transit time of 21 days from Pakistan.
Together with the LCL program details, views of some of the organizations
heads about the new service were there in the press, in order to attract
customers and giving them more confidence about the newly launched
program. An Extract from the Dawn paper was as follows:
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The launch of this new service will not only further strengthen supply chain
of Pakistan-Germany trade lane but it will also augment strong worldwideconnectivity offered by DHLs extensive LCL network and also help our
customers to reach new markets worldwide, said by Imran Shaikh, Managing
Director, DHL Global Forwarding, Pakistan.
As one of the largest Ocean Freight service providers for Full Container Load
(FCL) and Less-than-Container Load (LCL) shipments, it is continuously
growing by capturing more and more markets for both kinds of shipments it
offers. The press release was a success, reaching the target market became
easier. This is because Dawn newspaper is a very effective medium forbusinesses to reach out in market on large scale.
Internal Branding:
This is a very major step taken by marketing department of DHL Global
Forwarding Pakistan. Here all the upcountry offices (Lahore, Sialkot, and
Islamabad) were visited by the senior executive marketing communications
Mr. Talha Jamal for the internal branding.
Internal branding actually refers to linking your corporate brand to your
culture and values- thereby creating an internal brand an organization
creates a platform from which to communicate to your employees the vision,
mission and urgency. Internal branding helps improve credibility andstrengths the bond of trust between leader and employees. When people are
united in purpose and know where they are headed, positive results occur.
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With the same aim in mind DHL believes that this initiative will guide
employees company-wide in managing their personal impact on customer
experience. Internal branding will engage all executives and employees
effectively in outside-in thinking and behaviors.
D.Conclusion:
DHL Global Forwarding Pakistan, one of the leading freight forwarding
company in the world initially didnt face any problems for not having proper
marketing operations. This was due to the fact of being B2B in nature i.e.
Business to Business. But now when its going through its growth stage,
where its customers, products, market share everythings increasing so it
needed some real attention towards the planning for its marketing operations
as well. Moreover the fact of getting and maintain a competitive edge over its
competitors also led the starting of some efficient marketing operations.
In the analysis part of the report all the major efforts made by DHL within 2-3
months short span of time are commendable. This gives a clear picture that
DHL used a proper strategy to implement a new department on full
operational scale. From the identification of the need of a marketing
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department, to the right time to starting the department, to the appointing of
an appropriate executive to run its operations, all were very well planned and
put into action.
The activities that it undertook to promote DHL at different levels played an
important role in building DHLs brand awareness and at the same time
building its brand equity.
The CSR (Corporate Social Responsibility), PR (Public relations), Press
marketing, Internal branding all shows the efficient working of the newly
formed marketing department in a very short span of time. And the
difference of DHL Global Forwarding Pakistans performance prior and after
the formation of the marketing department is already evident.
Recommendations:
Hiring of more personnel in the marketing department as currently just
one manager is handling all the operations of the marketing
department.
Take customer feedback as they are the best people who can help DHL
in making it even better. A survey can be taken to know what people
think of DHL and what should be done to improve it.
Hire some experts who have sound knowledge and expertise in the
field of advertising so that they can guide how and where the company
should be advertised.
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Suggestions from the existing employees can be taken as to how the
company should move on its advertising campaign. They can be of
great help as know better how the company should be marketed.
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