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

Abstract:

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.

Issues:

» 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

Contents:

Keywords:

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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