Facility Location of DHL: Selecting the Leipzig/Halle Site and Building Operations Facilities

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:


Case Code : OPER099 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 +Shipping & Handling Charges extra


Logistics/Location/Layout/Supply Chain

Case Length : 19 Pages
Period : 2004-2011
Organization : Deutsche Post DHL (DHL)
Pub Date : 2011
Teaching Note : Not Available
Countries : Europe
Industry : Logistics


This case study is about DHL’s decision to relocate its European hub from Brussels in Belgium to Leipzig/Halle in Germany. This decision was triggered by the fact that DHL planned to spread its operations worldwide and Leipzig was located in the center of Europe, which would help DHL in achieving its objective. Also other advantages regarding facility location tilted the decision toward Leipzig/Halle. However, relocating the entire facility to a completely new place was a difficult and arduous task. This also involved the facility layout decisions in Leipzig/Halle. Finally, DHL had to look at the long-term perspective in terms of building the supply chain network. This case describes how a facility is relocated to a new location.

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies


Identify the key factors to be considered when designing a distribution network.
Understand the role of network design in a supply chain.
Identify factors influencing supply chain network design decisions.
Develop a framework for making network design decisions.
Use optimization for facility location and capacity allocation decisions.
Understand how DHL has identified its optimum location of its facility.
Understand the role of facility layout in the performance of a company.
Understand how sustainability of the supply chain is related to the eco-friendliness of the companies


  Page No.
Introduction 1
Company Background 2
Establishing the hub at Leipzig 3
Locational Advantages 5
Other Advantages 5
Emphasis on Technology 6
Transport Facilities 9
Initial Hitches? 10
Future Expectations 10
Exhibits 11


Operations Management, Facility Location, Selection of Site, Operational Strategies, Operational Facilities, Logistics, Facility Layout, Inventory Management, Project Management, Supply Chain, Location Advantages, Sorting Facility, Hub and Spoke, Leipzig/Halle Hub, DHL

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