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Realigning Service Operations Strategy at DHL Express

Author

Listed:
  • Tim Coltman

    (Centre for Business Service Science, University of Wollongong, Wollongong, New South Wales 2522, Australia)

  • John Gattorna

    (Macquarie Graduate School of Management, Macquarie University, Sydney, New South Wales 2000, Australia)

  • Stuart Whiting

    (DHL Express Global Head Office, D-53113 Bonn, Germany)

Abstract

This paper describes the approach that DHL used to respond to aggressive revenue and profit targets set by its Asia-Pacific regional management board. DHL's reaction to these targets was to redefine its strategic service vision by systematically aligning its internal support functions with distinct buyer behavior structures. Specifically, we developed a model based on the tangible and intangible factors that directly influence a customer's choice of a third-party logistics provider. Next, we reverse engineered the service provider's delivery system to align with each customer's preferred buying behavior. DHL's share of wallet and profitability immediately improved, enabling the company to maintain its leading position in the market. Quantitative and qualitative results show an improvement in DHL's market share, customer satisfaction scores, and employee opinion survey results.

Suggested Citation

  • Tim Coltman & John Gattorna & Stuart Whiting, 2010. "Realigning Service Operations Strategy at DHL Express," Interfaces, INFORMS, vol. 40(3), pages 175-183, June.
    • Handle: RePEc:inm:orinte:v:40:y:2010:i:3:p:175-183
    DOI: 10.1287/inte.1100.0491
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    References listed on IDEAS

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    1. Wiktor Adamowicz & David Bunch & Trudy Cameron & Benedict Dellaert & Michael Hanneman & Michael Keane & Jordan Louviere & Robert Meyer & Thomas Steenburgh & Joffre Swait, 2008. "Behavioral frontiers in choice modeling," Marketing Letters, Springer, vol. 19(3), pages 215-228, December.
    2. Jerry Wind & Paul E. Green & Douglas Shifflet & Marsha Scarbrough, 1989. "Courtyard by Marriott : Designing a Hotel Facility with Consumer-Based Marketing Models," Interfaces, INFORMS, vol. 19(1), pages 25-47, February.
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    Cited by:

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    2. Huo, Baofeng & Ye, Yuxiao & Zhao, Xiande & Wei, Jiang & Hua, Zhongsheng, 2018. "Environmental uncertainty, specific assets, and opportunism in 3PL relationships: A transaction cost economics perspective," International Journal of Production Economics, Elsevier, vol. 203(C), pages 154-163.

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