Difference between revisions of "ANLY482 AY2017-18T2 Group27 : Project Findings"
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| + | ==<div style="background: #c9c9c9; padding: 15px; font-weight: bold; line-height: 0.3em; text-indent: 0px; font-size: 14px"><font color=#292929 >8.0 Project Findings</font></div>== | ||
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| + | Rate Per Kg (RpK) | ||
| + | DHL has different rates for different customers and different routes. These rates are based on air freight services provided by external airlines, which are also dependent on the routes, weight and volume. To retain customers, DHL offer contractual rates. These rates are based on loyalty of customers, their shipping volume, weight and their frequency. Also, any ad-hoc delivery requested by DHL’s customers will be charged at a higher rate. | ||
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| + | Density | ||
| + | One issue faced by DHL is the optimisation of the cargo mix for the client. Currently, DHL relies solely on the transactional data provided by its clients to buy up cargo capacity. This is based on the forecasted weight and volume of goods. However, when there is an over or under shipment of cargo, DHL would have to bear the additional cost of the unused capacity. Since DHL engages external airlines, these costs are chargeable; an extra charge for dense shipments and volumetric shipments that have an unused capacity is a sunk cost. Without an efficient tracking system on the density of its cargo shipped, DHL is unable to determine how much additional costs it is incurring and hence, it faces difficulty in reducing these costs. | ||
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| + | Ship To Profile (STP) | ||
| + | For every account, there is a stipulated projected shipment volume in the contract for each country lane. Despite the stipulated contractual amount, there are always discrepancies in the projected shipment volume and the actual shipment volume. In some country lanes, the account ships drastically more or less than the projected amount. The GAMs inability to spot volume trends and monitor actual shipping amount will result in additional costs for DHL. | ||
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| + | ==== 8.1 RPK ==== | ||
Revision as of 13:18, 2 March 2018
8.0 Project Findings
Rate Per Kg (RpK) DHL has different rates for different customers and different routes. These rates are based on air freight services provided by external airlines, which are also dependent on the routes, weight and volume. To retain customers, DHL offer contractual rates. These rates are based on loyalty of customers, their shipping volume, weight and their frequency. Also, any ad-hoc delivery requested by DHL’s customers will be charged at a higher rate.
Density One issue faced by DHL is the optimisation of the cargo mix for the client. Currently, DHL relies solely on the transactional data provided by its clients to buy up cargo capacity. This is based on the forecasted weight and volume of goods. However, when there is an over or under shipment of cargo, DHL would have to bear the additional cost of the unused capacity. Since DHL engages external airlines, these costs are chargeable; an extra charge for dense shipments and volumetric shipments that have an unused capacity is a sunk cost. Without an efficient tracking system on the density of its cargo shipped, DHL is unable to determine how much additional costs it is incurring and hence, it faces difficulty in reducing these costs.
Ship To Profile (STP) For every account, there is a stipulated projected shipment volume in the contract for each country lane. Despite the stipulated contractual amount, there are always discrepancies in the projected shipment volume and the actual shipment volume. In some country lanes, the account ships drastically more or less than the projected amount. The GAMs inability to spot volume trends and monitor actual shipping amount will result in additional costs for DHL.
