Land & Sea Transport Aviation Management E-Book

• Herausgeber: Books on Demand
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 292

Veröffentlichungsjahr: 2021

Beschreibung

Business concepts in the Transportation Management

Leseprobe

Table of Contents

Land & Sea Transport

1 Logistics concept of Daimler trucks Hohlbein, L.

2 DHL Yuquan, L.

3 JD Retail Company in China Zhou, X.

4 Amazon Patience, A.

5 DB Schenker “Self-driving Vehicles” Schumacher, K.S.

6 COSCO SHIPPING Kong, X.

7 UPS Jiang, M.

8 DSV Kolbe, S.

9 Anji Logistics Hou, J.

10 DHL Abdolmaleki, F.

11 FedEx Siegfried, P.

Aviation Management

12 Qatar Airways Hohlbein, L.

13 Lufthansa Yuquan, L.

14 China Eastern Airlines Zhou, X

15 Emirates airlines Ameh, P.

16 easyJet Schumacher, K.S.

17 Air China Kong, X.

18 Austrian Airlines Jiang, M.

19 Quatar Airways Kolbe, S.

20 China Eastern Airlines Hou, J.

21 Qatar Airways Abdolmaleki, F..

22 Iran Air Siegfried, P.

1 Logistics concept of Daimler trucks

Hohlbein, L.

Introduction of the company

Daimler’s focus on logistics megatrends

Autonomous trucks

Daimler’s strategy

Best practice concept from a competitor

Conclusion

References

1 Introduction of the company

The Daimler group is one of the world’s biggest manufacturers of commercial vehicles and premium cars with a global reach. Their services include financing, leasing, fleet management, insurance and innovative mobility services.1 The Daimler Truck AG is specialized for trucks and buses and was founded more than 120 years ago. It consists of seven brands being produced in more than 35 primary facilities and employing around 100,000 employees. In 2018, more than 1.5 million trucks and buses were delivered to customers. Since the customers are the central focus of this company, they are seeking for continuous improvements and innovations.2

2 Daimler’s focus on logistics megatrends

Daimler enhances their focus on future trends by mentioning especially the key words mobility and internet. Regarding the point of Internet, the company states that completely new types of logistics systems will be needed in the future. They believe, that goods might be able to be transported autonomously in the future through data packets that use network nodes.3

In this context, one focus of Daimler trucks is a technological trend with automated trucks (ATs). In 2014, they presented the Mercedes-Benz Future Truck 2025, the world’s first AT. Daimler trucks is also the first manufacturer to put partially autonomous driving (AD) features into series production. In 2019, the company established the Autonomous Technology Group with an investment of more than 500 million euros to go one step further to full automation. The main tasks of this organization include the overall strategy and implementation of the AD roadmap, also consisting of research and development, and setting up the required operations infrastructure and network. The main goal is a series production of highly ATs.4 With this AD approach, there come other trends along to enable this technology. This includes among others artificial intelligence and deep learning which makes it possible for the autonomous technology to constantly learn from the surrounding and improve itself.5

Another focus of the company belonging to social & business trends is a CO2-neutral transport. This includes building CO2-neutral trucks by focusing battery-electric vehicles and hydrogen-based fuel cells instead of diesel and ensuring that customers can work with them economically without any disadvantages.6 Daimler’s subsidiary company ACCUMOTIVE is responsible for the development and production of lithium-ion batteries. Daimler is setting one focus on plug-in hybrids for passenger cars as these types of cars reduce the overall consumption but still give flexibility in terms of distances. This is also the reason why Daimler is focusing on fuel-cell drive because it has a greater range and faster refueling than complete electric vehicles. Therefore, the company also founded a joint venture called H2 MOBILITY Deutschland to gradually expand a nationwide network for refueling fuel cell power. Here, investments of around 400 million euros are planned.7

There are various fields in which Daimler is contributing to including green logistics, self-driving vehicles, artificial intelligence and internet of things. However, this paper will focus on the megatrend of self-driving vehicles, also called AD.

3 Autonomous trucks

AD became more present and evolved in the past years.8 The technology involves special hardware and software systems that can assist or assume full responsibility for the driving.9

Figure 1: Automated driving levels; Source: SAE International 2019.

The society of automotive engineers published in 2014 the six levels of driving automation which are valid for all motor vehicles. Level zero to level two consist of driver support features and start with small features like automatic emergency breaking up to lane centering and adaptive cruise control at the same time. To be more specific, Level zero is described as manual driving, level one as assisted driving and level two as partially automated driving where the driver still continuously monitors the system. Trucks from Daimler with level two are already brought into series production. Level three to five consists auf automated driving features and starts with features like a traffic jam chauffeur and goes up to a full self-driving vehicle under all conditions in level five. To be more precise, Level three is described as conditionally automated driving, level four as highly automated driving and level five as fully automated driving where only in the last level there is no driver needed to be present anymore.10 The detailed features of the individual levels are shown in the figure below.

It is expected that the truck segment will become driverless before cars, because the focus is on a more practical level and the industry has a high need for adaption.11 One reason for that necessity are the increasing truck driver shortages. In the US, this shortage is predicted to be 175,000 people by 2024. Therefore, a fully AT is a chance to handle these shortages in the future. Moreover, ATs can increase traffic safety, improve transport efficiency and reduce pollution.12 To be more precise, the effects of fully ATs are expected to decrease total cost of ownership up to 28 %, savings of 5 % of the driving time through route optimizations, 76 % fewer crashes, up to 60 % CO2 savings and a reduction of labor costs up to 90%.13 Due to this high need for adaption, it is expected that from 2020 to 2025 the market for semi-autonomous Trucks will grow by 28 % and for the fully ATs by 22.4 % in 2030.14

Since the technology behind ATs is associated with high costs, it is expected that there is no immediate cost benefit of the applications from level one to three. However, there will be a significant improvement of total cost of ownership at level four and five due to the significant or full amount of autonomy. Therefore, it is necessary that governments push this industry towards automation in order to reach the high levels of autonomy. This also means, that legal frameworks need to be established already starting at the testing phase.15 Thus, the biggest challenges are currently seen between the step from level two to level three technologies.16 In order to educate the public, politician and regulators on autonomous vehicles, several companies in the passenger car and truck industry formed the self-driving coalition in the US. The participating companies are among others Ford, Motional, Uber, Volvo Cars, Waymo, Embark and TuSimple.17

Another challenge will be the implementation of ATs. There are several strategies existing, including lane reservation and exclusive assignment of an existing infrastructure. A more feasible strategy is to share the infrastructure of ATs and conventional vehicles.18 However, this coexistence between conventional vehicles and automated vehicles may lead in the introduction phase to disruptions like congestions and delays.19

4 Daimler’s strategy

In order to reach full autonomy, Daimler is developing software systems that are already in use today. One system is the highway pilot which is a highly intelligent network consisting of assistance and connectivity systems. It is already used with the Freightliner Inspiration Truck and the Mercedes-Benz Actros. The highway pilot can be compared with an autopilot of an airplane. Once the truck is on the highway, the system adapts the speed to the traffic flow, takes the speed limit into consideration and maintains the required distance from the vehicle ahead. Therefore, a three-dimensional map detects the traffic environment through various cameras. Moreover, it is possible that ATs could communicate with each other in the future through this system. However, the system does not initiate autonomous maneuvers, is able to leave the highway or change lanes.20

In this context, Daimler is also working on a platooning technology which enables trucks to be electronically linked to form platoons. In the platoon, trucks can shrink their distance to 15 meters instead of the normally required 50 meters. Hence, this system reduces air resistance which leads to a reduction of fuel consumption and CO2 emissions. Moreover, this system enables a more efficient use of road space and increases the safety of the road traffic.21

Furthermore, in 2020 Daimler Trucks has signed a partnership with the company Waymo, which is an AD technology company in order to deploy the level four technology. Therefore, they are equipping the Freightliner Cascadia Truck from Daimler with the technology from Waymo which will be available in the US in the near future. Both companies are also aiming for the expansion to other markets.22 The partnerships enable Daimler to make use of economies of scale. However, Daimler has no access to the data generation of Waymo. Despite being major competitors, both companies see a huge potential in their partnership because they believe that it enables a faster development of highly ATs than for the rest of the market. However, there is also a partnership between the competitors Traton and TuSimple which will test their trucks in Sweden and Germany.23

Regarding the legal requirements for AD, Daimler is advocating an internationally harmonized legislative framework. As an example, Germany is the first country which regulated AD within its legal framework. However, these laws do not allow AD with merely passengers. Thus, action is required from the governments to enable this technology. Moreover, liability in an event of an accident as well as society’s acceptance are obstacles for the breakthrough of this technology. Therefore, Daimler established a multidisciplinary steering committee consisting of developers, engineers and legal experts to deal with issues relating law, ethics and data protection.24

Regarding existing products Daimler has already several truck models on the market with autonomous features as mentioned before. One of them is the Freightliner Inspiration Model, which is the first road-approved truck for autonomous operation on public highways in Nevada. It is equipped with Daimler’s Highway Pilot and a radiator grille that can change its color to create transparency for other road users whether the autonomous mode has been activated or not.25

5 Best practice concept from a competitor

The market for ATs is very competitive including other companies like Embark Trucks, TuSimple, Volvo, Starsky and Tesla.26

The startup TuSimple which is based in San Diego is one of the companies with the furthest development of highly ATs through combining their unique technology with strategic partnerships. Currently, they are conducting test operations including depot-to-depot autonomous runs and working together with the truck manufacturer Navistar and the shipping company UPS. The company claims that their approach is a best practice example because their technology is directly focused on the truck segment, while most companies built up their ideas for autonomous vehicles. TuSimple explains that the truck industry needs to react further in advance because of their longer stopping distance. It is already proven that the technology from TuSimple leads to higher safety and more efficiency.27 The company works on four projects: ATs, digital maps, strategic terminals and the system TuSimple Connect. Currently, they are working on the utilization of level four ATs which will be able to transport freight autonomously on highways and surface streets. These trucks will utilize their digital maps which are continuously monitored and updated. Moreover, they are building up a strategic network of terminals for a smooth freight transportation. Their self-developed monitoring system TuSimple Connect will help to ensure the utilization management of the trucks.28 By 2024, the company plans to achieve level four autonomy. At this time, the company also plans to sell their trucks to fleet operators. The first step towards this autonomy level comes with their first test without driver in 2021.29 To sum it up, TuSimple is building up a vertical industry for ATs to increase efficiency and reliability of their system. Since their technology is well tailored for the truck industry, the company is able to reach faster improvements and innovations in comparison to their competitors. However, it is important to mention that their current technology is also focused on the US market. Since other regions like the European Union have stricter regulations it could be possible that this company would need to make further adaptions to be able to enter these markets.

6 Conclusion

To sum it up, Daimler is taking a strong initiative in the technology of AD through establishing the Autonomous Technology Group and the partnership with Waymo. However, there is also strong competition in this field with companies like the startup TuSimple. Therefore, Daimler needs to take care to reach level four and five as fast and as cost efficient as possible in order to seek first mover advantages. Moreover, TuSimple built up its system specifically designed for the truck industry. When it comes to the higher levels of autonomy, it is possible that their focus will lead to a faster development.

But there are not only challenges for Daimler regarding their speed of research and development, there is also the problem of legal requirements and public acceptance which is an issue for the whole industry. As long as there is no framework that allows the operation of fully ATs, no company is able to make sales in this field.

However, Daimler is building up a strategic strength that addresses these issues:

First of all, they are introducing their semi-autonomous trucks already in the US, because of the legislative situation. Therefore, they can make sure, that their technology is already tested and operated like it is also practice for their competitor TuSimple. Also, Daimler is profiting from Waymo’s membership in the self-driving coalition in the US, which enables the company to react fast in this country as well.

Moreover, since Daimler is situated in Germany, they also have the possibility to influence the political framework there. The company is able to address this issue to politicians and is also more likely to be one the first to introduce their products to the German market, when the legal framework is adapted.

Furthermore, the company established a steering committee that is specialized for these legal and ethical issues which will give Daimler the opportunity to identify trends, influence the surrounding and react fast to changes.

All in all, Daimler belongs to the leaders in the truck industry regarding AD and has the potential for first mover advantages in Germany. However, their speed of development and the competitive situation will decide who will be the market leader of level four and five ATs.

References

Ackerman, E. (2021): This Year, Autonomous Trucks Will Take to the Road With No One on Board (https://spectrum.ieee.org/transportation/self-driving/this-year-autonomoustrucks-will-take-to-the-road-with-no-one-on-board) Accessed on 16.02.2021.

Aulbur, W. (2018): Hurdles loom on road to autonomous trucks (https://www.rolandberger.com/it/Insights/Publications/Hurdlesloom-on-road-to-autonomous-trucks.html) Accessed on 16.02.2021.

Collingwood, L. (2018): Autonomous trucks: an affront to masculinity? In: Information & Communications Technology Law, 27 (2018), No. 2, pp. 251-265.

https://doi.org/10.1080/13600834.2018.1458456

Daimler (2021a): The Daimler Group (https://www.daimler.com/company/) Accessed on 15.02.2021.

Daimler (2021b): Welcome to Daimler Truck AG (https://www.daimler-truck.com/company/) Accessed on 15.02.2021.

Daimler (2021c): Trend Intelligence: Knowing the future before it happens (https://www.daimler.com/innovation/pioneering/trendintelligence-2.html) Accessed on 18.02.2021.

Daimler (2021d): Daimler Trucks establishes Autonomous Technology Group (https://www.daimler.com/innovation/case/autonomous/autonomous-technology-group-2.html) Accessed on 15.02.2021.

Daimler (2021e): Computer brains and autonomous driving. How artificial intelligence makes cars fit for the future (https://www.daimler.com/innovation/case/autonomous/artificial-intelligence.html).

Daimler (2021f): The road to CO2-neutral transport (https://www.daimler-truck.com/innovation-sustainability/efficient-emission-free/co2-neutral-transport.html) Accessed on 15.02.2021.

Daimler (2021g): Our drive. The technology of the vehicles (https://www.daimler.com/innovation/case/electric/eq-technology.html) Accessed on 18.02.2021.

Daimler (2021h): Automated Driving at Daimler Trucks. (https://www.daimler.com/innovation/case/autonomous/automated-driving-daimler-trucks.html) Accessed on 16.02.2021.

Daimler (2021i): Highway Pilot. The Autopilot for Trucks. (https://www.daimler.com/innovation/case/autonomous/highwaypilot-2.html) Accessed on 16.02.2021.

Daimler (2021j): Connected trucks: Towards future transport. (https://www.daimler.com/innovation/case/connectivity/connected-trucks.html) Accessed on 16.02.2021.

Daimler (2021k): Strategic partnership. Daimler Trucks and Waymo (https://www.daimler.com/investors/reports-news/financial-news/20201027-dt-and-waymo.html) Accessed on 16.02.2021.

Daimler (2021l): Automated and Autonomous Driving. Legal Framework (https://www.daimler.com/innovation/case/autonomous/legal-framework.html) Accessed on 16.02.2021.

Daimler (2021m): Driving autonomously through Nevada. Freightliner Inspiration Truck (https://www.daimler-truck.com/innovation-sustainability/safe-automated/freightliner-inspirationtruck.html) Accessed on 17.02.2021.

Doll, G.; Ebel, E.; Heineke, K.; Kellner, M.; Wiemuth, C. (2020): Private autonomous vehicles: The other side of the robo-taxi story (https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/private-autonomous-vehicles-the-other-side-of-the-robo-taxi-story) Accessed on 16.02.2021.

FleetOwner (2021): TuSimple among autonomous truck companies to join Self-Driving Coalition (https://www.fleetowner.com/technology/autonomous-vehicles/article/21152006/tusimple-among-autonomous-truck-companies-to-join-selfdriving-coalition) Accessed on 18.02.2021.

Hubik, F.; Demling, A. (2020): Daimler und die Google-Schwester Waymo kooperieren bei Roboter-Trucks (https://www.handelsblatt.com/unternehmen/industrie/autonomes-fahren-daimler-und-die-google-schwester-waymo-kooperieren-bei-roboter-trucks/26312372.html?ticket=ST-7754163-gjENhsthcKfj5xmkHkL7-ap6) Accessed on 16.02.2021.

Kaplan, S.; Gordon, B.; Zarwi, F. E.; Walker, J. L.; Zilberman, D. (2019): The Future of Autonomous Vehicles: Lessons from the Literature on Technology Adoption. In: Applied Economic Perspectives and Policy, 41 (2019), No. 4, pp. 583-597. https://doi.org/10.1093/aepp/ppz005

MarketsandMarkets (2020): Semi-Autonomous & Autonomous Truck Market By Level of Automation (Level 1, Level 2&3, Level 4 and Level 5), Propilsion (Diesel, Electric, and Hybrid), Application, Truck Class, ADAS Features, Sensor, and Region – Global Forecast to 2030 (https://www.marketsandmarkets.com/Market-Reports/semi-autonomous-truck-market-224614273.html) Accessed on 17.02.2021.

McKinsey (2016): Gearing up for growth – Future perspectives on the global truck market (2016) pp. 1-69. (https://www.mckinsey.com/~/media/McKinsey/Industries/Automotive%20and%20Assembly/Our%20Insights/Gearing%20up%20for%20growth/Gearing%20up%20for%20growth%20Future%20perspectives%20on%20the%20global%20truck%20market%20Aug%202016.ashx) Accessed on 17.02.2021.

Milakis, D. (2018): Long-term implications of automated vehicles: an introduction. In: Transport Reviews, 39 (2019), No. 1, pp. 1-8. https://doi.org/10.1080/01441647.2019.1545286

Myers, K. (2020): Self-Driving Semi-Trucks: Who, What, When, and Why – Part 2 (https://www.flockfreight.com/2020/03/11/self-driving-semi-trucks-who-what-when-and-why-part-2/) Accessed on 19.02.2021.

Nasri, M. I.; Bektaş, T.; Laporte, G. (2018): Route and speed optimization for autonomous trucks. In: Computers and Operations Research (2018), No. 100, pp. 89-101. https://doi.org/10.1016/j.cor.2018.07.015

SAE International (2019): SAE Standards News: J3016 automated-driving graphic update (https://www.sae.org/news/2019/01/sae-updates-j3016-automated-driving-graphic) Accessed on 15.02.2021.

TuSimple (2021): Ecosystem Approach (https://www.tusimple.com) Accessed on 16.02.2021.

Wetzel, B. (2020): Understanding The 5 Levels of Autonomous Trucking (https://www.breakthroughfuel.com/blog/levels-of-autonomous-trucking/) Accessed on 16.02.2021.

1 cf. Daimler (2021a).

2 cf. Daimler (2021b).

3 cf. Daimler (2021c).

4 cf. Daimler (2021d).

5 cf. Daimler (2021e).

6 cf. Daimler (2021f).

7 cf. Daimler (2021g).

8 cf. Doll et al. (2020).

9 cf. Milakis (2018) p. 1.

10 cf. Daimler (2021h).

11 cf. Collingwood (2018) p. 3.

12 cf. Nasri et al. (2018) p. 89.

13 cf. McKinsey (2016) p. 56.

14 cf. MarketsandMarkets (2020).

15 cf. Aulbur (2018).

16 cf. Wetzel (2020).

17 cf. FleetOwner (2021).

18 cf. Nasri et al. (2018) p. 89.

19 cf. Kaplan et al. (2019) p. 593.

20 cf. Daimler (2021i).

21 cf. Daimler (2021j).

22 cf. Daimler (2021k).

23 cf. Hubik & Demling (2020).

24 cf. Daimler (2021l).

25 cf. Daimler (2021m).

26 cf. Myers (2020).

27 cf. Ackerman (2021).

28 cf. TuSimple (2021).

29 cf. Ackerman (2021).

2 DHL

Yuquan, L.

1 Introduction

2 Analysis of Logistics Trend

2.1 Social & Business Trends

2.2 Technology Trends

3 Competitor

3.1 UPS Strengths

3.2 Comparison between DHL and UPS

4 Conclusion

References

1 Introduction

Background

DHL is a transnational network in more than 220 countries and territories. It has 310,000 employees worldwide, providing customers with exceptional service quality and local experience such as air, sea, domestic transportation, cargo management, and customs clearance services to meet their supply chain requirements.30

Current situation

DHL is committed to the safety of employees and customers. DHL Group has set up a Covid-19 Task Force to monitor and manage the outbreak of Covid-19 carefully, which led by the CEO. The Task Force also coordinates with international organizations such as WHO, CDC, ECDC, and the Robert Koch Institute and provides the necessary information to all employees and relevant departments.31 For areas and locations of operations were cases of Covid-19 are confirmed or suspected, DHL coordinates procedures with the relevant health authorities and follows the recommendations of official health advice to maximize the safety of employees and customers.32

Logistics 4.0

Nowadays, businesses are faced with new customer needs and are challenged by global competition, leading to fundamental changes in today's industry.

With today's products developing, new production methods and logistics systems will avoid increasing costs and competitive disadvantages in the global market.33 Winkelhaus & Grosse described that Logistics 4.0 is a logistics system that continuously meets personalized customer needs at no additional cost and uses digital technology to support this development in industry and trade.34

2 Analysis of Logistics Trend

In recent years, four major trends affecting logistics will also affect the whole industry's development: globalization, digitalization, e-commerce, and sustainability.35

Figure 1: Logistics Trend Radar 5th Edition; Source: DHL 2020b.

According to the logistics trend radar (cf. Figure 1), it is clear that the development trend of logistics can be divided into two kinds, namely, Social & Business Trends and Technology Trends. Among them, supergrid logistics, sustainable logistics, and logistics marketplaces significantly impact Social & Business Trends. However, self-driving vehicles, artificial intelligence, Internet of things, and big data analysis significantly impact Technology Trends.36

2.1 Social & Business Trends

Supergrid logistics

Supergrid logistics refers to integrating, coordinating, and optimizing the next dimension of the global supply chain network, integrating different companies and logistics providers.37 The logistics supergrid logistics' idea is to make a solitary worldwide stage that can efficiently integrate various parties in multiple supply chains, thus providing modular services for all kinds of customers, reducing costs and maximizing efficiency.38 The global supergrid logistics focus on cross-border integration and market segmentation, including users, service specialists, logistics solution coordinators, and providers of logistics platforms.39 Therefore, considering the need for a modular, configurable portfolio of logistics solutions, a critical factor in developing supergrid logistics is interoperability.40

Supergrid logistics has excellent development potential and opportunities in the future because the convenience of products in digitally integrated B2C and B2B e-commerce markets increases, and worldwide suppliers can develop their networks and enter new marketplaces with better service quality.41 Thus, it makes product delivery efficient quickly from anywhere possible.

For example, Alibaba's Cainiao Intelligent Logistics Network is working hard to build supergrid logistics, aiming to grow into the world's most efficient logistics network, which aims to distribute goods anywhere in China within 24 and anywhere worldwide within 72 hours.42 The core of Cainiao is the intelligent data platform, which can connect e-commerce companies seamlessly with participants in the supply chain to achieve end-to-end solutions. To date, the enterprise offers services in more than 220 countries and regions and can integrate logistics services from more than 200 partners. 43 Therefore, Cainiao Network has increased delivery times around the world by 20%, reduced the packages' cost implemented by B2C by 9%, and better sorting and delivery efficiency within China by 24-27%.44

Sustainable logistics

With the strengthening of globalization and the requirements of emerging markets, logistics services' role has changed. Organizations need to face competitors offering advanced services in an increasingly complex logistics environment.45

According to World Economic Forum's report in 2020, it predicts that the growth of e-commerce will lead to a 36% increase in vehicle growth, resulting in an additional 32% in carbon emissions by 2030.46 Therefore, governments, enterprises, and customers are taking steps to reduce environmental damage from production activities based on these predictions. Energy efficiency, improved material alternatives, and effective environmental policies are all undergoing a new evolution.47 People believed that emerging technology is an important connection in the supply chain as it is helpful for organizations to accomplish sustainability and competitiveness.48 These skills can also lead to specific logistics innovations to respond to increasingly fierce competition and remain competitive advantage worldwide.49 In general, the demand of customers for the green logistics industry drives investment in the supply chain technology, creating an upward cycle, so green and pollution-free alternatives become a way to compete.50

DHL uses a "Supplier Code of Conduct" to manage its relationship with its suppliers, which sets standards for suppliers' activities about environmental projects.51 DHL also encourages suppliers to comply with its ethical, health, and environmental standards to make these standards as consistent as possible with its principles and activities.52 Besides, DHL's green procurement policy includes the following sectors: Packaging (especially pallet packaging), paper and printed matter, and Field consumables (various products).53

Logistics marketplaces

DHL Freight offers delivery occasions in more than 150 countries and region around the world. The company's Freight Division offers service options in more than 50 countries and more than 180 terminals. Besides, the supply chain division offers service in about 60 countries and regions, with 2,590 warehouses, terminals, and offices worldwide.54 Furthermore, DHL Global Mail has 32 sales offices and 26 processing centers across five continents, with direct links in more than 200 countries and territories.55 Therefore, it can be seen that DHL has a vast logistics market in the world.

The freight forwarding market provides a platform for companies that use one or more transportation modes to ship goods to logistics providers. The platform can provide customers with quick switching between different modes of transport according to dynamic changes in the situation, which will be more effective in managing unstable supply chains and short-term cargo constraints.56 For example, DHL's digital freight platform-Saloodo, which provides shippers and transportation providers with a transparent medium to optimize cost and time, has recently expanded from Europe to Sub-Saharan Africa and the Middle East.57

2.2 Technology Trends

Artificial intelligence

With the rapid development of computer technology, machine learning, and big data analytics, artificial intelligence (A.I) has been widely applied in the logistics field.58 Artificial intelligence will improve supply chain efficiency through its predictive and visual recognition capabilities, increase the degree of workflow intelligence and automation, and provide innovative customer experiences.59

DHL Supply Chain has designed and developed the IDEA software solution specifically for use in electronic logistics warehouses.60 According to Markus Voss, chief information officer and chief operating officer of DHL Supply Chain, the Covid-19 crisis showed that the unpredictable fluctuations in individual products' quantity could put a huge strain on the supply chain.61 Unclear inventory levels and inaccuracies in available data may cause individual products' bottlenecks, leading to delays in delivery to the end customer. This "artificial intelligence" solution helps optimize the picking route within the warehouse through the IDEA analytics tool, and orders are logically sorted, which helps colleagues in the warehouse optimize the picking process.62

Internet of Things

The term "Internet of Things" (IoT) originated at MIT's Auto-ID Center and began in the late 1990s to describe RFID infrastructure work.63 It is now defined as a global infrastructure network in which things, computing functions, and wireless transmission combine to form an information network, enabling new communication channels between people and things and between things and everything else.64

With the development of transportation systems and vehicles equipped with higher levels of sensing, networking, and communication capabilities, the Internet of Things is expected to significantly impact logistics, allowing vehicles to interact with each other and their surroundings.65 Also, as sensing technology becomes more advanced than before, they will use various sensors, radar equipment, and cameras to perform specific tasks, including driving themselves, avoiding collisions, finding parking spaces, and detecting pedestrians and animals. 66 As a result, IoT can improve visibility, traceability, and reliability, optimize asset utilization, and shorten response times for the support of operational.67

Big data analysis

In 2013, DHL predicted that big data analytics would improve logistics operations efficiency and customer satisfaction and build new business models.68 Owing to advanced data analytics that be able to integrate traditionally fragmented fields, these characteristics help providers be advanced search engines in the real world.69

An exciting example of using big data technology in logistics is DHL's "Resience360", a tool designed to manage supply chain risk, and there are elements for monitoring the supply chain in near real-time and for risk assessment analysis.70 Therefore, DHL could offer customers information about potential disruptions in supply chains. Through the data collection and evaluation, it is possible to protect and improve the supply chain's efficiency.71 As a result, operations will not be disrupted, and it is possible to keep customers satisfied.

DHL has demonstrated that big data analytics improves operational efficiency as DHL is in the pilot phase of its "Parcel Predicted Quantity DHL" model, which has also been integrated with big data analytics. 72 This model simplifies the planned number of packages to be shipped by "considering relevant data factors." Thus, Big data analytics enable logistics companies to optimize logistics processes, better customer service, and contribute to developing new business models."73

3 Competitor

This section mainly analyzes the competitors of DHL. According to Website Datanyze, the most significant competitor of DHL is United Parcel Service (UPS).74 UPS is a leading global brand of delivery, provide delivery Service to 220 countries and regions; its headquarters is located in the United States. Through UPS' air and ground network, the company has a significant influence on the world, e.g., during 2019, the company in the global scope delivered a total of about 5.5 billion packages.75

3.1 UPS Strengths

Efficient multi-modal transport network: UPS is equipped with the most widespread integrated global air and ground network in the industry. It provides almost all types of services by a single pickup and delivery network, including domestic, international, commercial, and residential services.76 UPS optimizes network efficiency and asset utilization through its advanced engineering systems. In addition, UPS has enhanced its competitiveness in the worldwide transportation market through its extensive air, sea, land, and logistics networks.

Fast delivery: One of UPS's significant competitive advantages is consistently just-in-time delivery. UPS simplifies its operations by using simple handheld devices to communicate, scan packages, sign customers and automate technologies such as GPS navigation and rerouting.77 All of these strategies guarantee that UPS delivers faster than its competitors. Furthermore, seamless integration of collection and distribution mechanisms ensures efficient delivery operations, and UPS has invested $20 billion in Atlanta to build its Southeast Metro Automated Routing Terminal (SMART) logistics network facility, which connects all systems and equipment across the network.78 All these measures have improved the efficiency of delivery.

Customer Relationships: An essential competitive advantage for global companies is managing stronger customer relationships. UPS focused on building and keeping up long-term client connections, which helps them hold numerous clients; for instance, UPS offers support for about 1.6 million transportation clients and delivers packages to more than 9.9 million clients every day.79 UPS's essential development technique to expand deals and income is to pitch its current client base strategically. Moreover, they carry out the methodology in small packaging and solutions of the supply chain across its whole client base to accomplish better development and higher benefits.80

3.2 Comparison between DHL and UPS

In Table 1 compares the differences between DHL and UPS in different aspects. Although UPS has more employees than DHL in terms of size and staff, its service area is almost the same, with both companies serving around 220 countries. According to the UPS website, the risk management department is responsible for providing auto liability insurance for its customers and others, but there is no information online on whether DHL has a similar service.81 The services that the two companies provided for customers are similar. For example, their principal job is to deliver merchandise and mail to their destinations by air, sea, or land, as requested by the customers.82 UPS uses advanced tracking via the internet, professional equipment, and value-added services to transport cargo.

As a comparison, DHL applies multiple technologies to track goods and mail.

Defer to environment protection, DHL implements the GOGREEN program to reduce the environmental damage impact, while UPS applies package design and carbon impact analysis to solve environmental problems.83 However, the service quality of DHL in Asia and Western Europe is excellent, and the customer feedback on the service attitude of the staff is also good, while in South America and the U.S, DHL has underperformed UPS.84

Table 1: Comparison between DHL and UPS; Source: Liu & Wen 2012: 18-19.

4 Conclusion

In conclusion, firstly, under the current global Covid-19 pandemic background, DHL took timely measures to ensure the employees' and customers' health and the standard transportation. Therefore, DHL has adapted to the challenges brought by Covid-19 quickly.

Secondly, according to the trend radar, the logistics industry's future development trend is divided into social & business trends and technology trends. The most representative of the social & business trend is supergrid logistics, sustainable logistics, and logistics marketplace. In contrast, the most representative of the technological trend is artificial intelligence, Internet of things, and big data analysis. At the same time, Industry 4.0 and Logistics 4.0 also bring new opportunities for the logistics industry's development. To meet the requirements of different customer groups and further consolidate its position in the logistics industry, the DHL innovation community should give full play to its innovative advantages and provide more convenient and personalized solutions for global customers.

Thirdly, the biggest competitor of DHL in the future is UPS. Similarly, UPS's competitive advantages are reflected in an efficient multi-modal transportation network, fast delivery, customer relationships, and other aspects as a global logistics enterprise. Compare the differences between DHL and UPS, and it can be found that DHL lacks complete liability insurance, which may lead to customers' loss. Therefore, DHL should create a complete liability insurance system as soon as possible.

Also, to stimulate sustainable business development, DHL could offer customers discount service because customers will prefer affordable and cheap services in such a fast-changing market. If DHL can control costs at acceptable prices, then it will gain more. Furthermore, to retain excellent employees, DHL could provide more rewards or honors for outstanding employees to motivate them to work hard.

Finally, DHL's challenge is to stay ahead of the curve and attract more potential customers. In the context of dynamic global competition, DHL should continue to surprise customers and invest more in improving its services to maintain its leading position.

References

Atzori, L.; Iera, A.; Morabito, G. (2010): The internet of things: A survey. In: Computer networks, 54(15), pp. 2787-2805.

Business Strategy Hub. (2020): Business Strategy Hub - UPS SWOT Analysis (2020): (https://bstrategyhub.com/ups-swot-analysis/). Access on: 26.02.2021

Cosimato, S.; Troisi, O. (2014): The influence of green innovation in logistics competitiveness and sustainability. The DHL case study. In Toulon-Verona Conference" Excellence in Services". (https://sites.les.univr.it/eisic/wp-content/uploads/2018/07/Cosimato-Troisi.pdf). Access on: 24.02.2021

Cosimato, S.; Troisi, O. (2015): Green supply chain management. In: The TQM Journal 27(2), pp. 256-276.

Da Xu, L.; He, W.; Li, S. (2014): Internet of things in industries: A survey. In: IEEE Transactions on industrial informatics, 10(4), pp. 2233-2243.

Datanyze (2021): Datanyze - Top competitors of DHL. (https://www.datanyze.com/market-share/logistics--129/dhl-market-share