HO CHI MINH CITY UNIVERSITY OF

ECONOMICS AND FINANCE

DIGITAL TWINS
E - SUPPLY CHAIN

Lecturer: MBA. Nguyen Hong Phuoc

Year: 2023 - 2024 (2B)
Course Class: EBU1135E
Group: B03E

Ho Chi Minh City, January 2024

 GROUP MEMBER
Course Class: EBU1135E
Group: 5
Complete Time: 2023 - 2024 (1B)

Contribution
No
Full Name Student ID to
.
the task

1 Trần Bảo Trân 215120615 100%

2 Nguyễn Thị Minh Tuyết 215120969 100%

Quách Hoàng Khánh

3 215122117 95%
Châu

4 Lê Trần Quỳnh Chi 215120357 80%

5 Nguyễn Thị Thanh Thủy 215121828 85%

The year 2023 – 2024

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I. Introduction ............................................................................................ 5
1. Importance of this topic related to eSupply chain. The benefits that
eSupply chain brings to consumers............................................................. 5
2. Objectives of the research report. .......................................................... 6
3. Justification of the chosen company. .................................................... 6
4. Description of the chosen company (basic information, history
development, products/services. ................................................................. 8
4.1. Basic information: ............................................................................ 8
5. History ................................................................................................... 9
6. Products & Services............................................................................. 10
6.1. Express: .......................................................................................... 10
6.2. Mail: ............................................................................................... 11
6.3. Logistics: ........................................................................................ 11
II. Content .................................................................................................. 11
1. Analysis of the SWOT, rivals, and markets. ....................................... 11
1.1. SWOT Analysis ............................................................................. 11
1.2. Rivals .............................................................................................. 17
1.3. Markets ........................................................................................... 18
2. Identification and evaluation of competitive advantages of the
chosen company. ....................................................................................... 23
3. Identification and evaluation of Supply chain in general. .................. 25
4. ... Identification and evaluation of the strong point in the E-Supply chain
of the chosen company................................................................................. 27
...................................................................................................................... 27
- Advanced Simulation Capabilities: .................................................. 30
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 - Collaborative Platform:..................................................................... 31
- Integration with other Technologies: ................................................ 31
- Competitive Advantage: ................................................................... 32
5. Other technology in the E-Supply chain. ............................................ 32
5.1. Maersk uses blockchain to connect supply chain partners. ........... 32
5.2. Walmart’s multi-cloud. .................................................................. 33
5.3. Distributed Order Management (DOM) ........................................ 34
5.4. Warehouse management system (WMS) combined with
warehouse operations system (WES) ..................................................... 35
III. Conclusion .......................................................................................... 36
1. Summary of the evaluation .................................................................. 36
1.1. DHL’s competitive advantages ...................................................... 36
1.2. Supply chain capabilities in general .............................................. 37
1.3. Strong point in the E-Supply chain of the DHL ............................ 37
2. Additional information or insights. ..................................................... 37
2.1. DHL Express Vietnam inaugurated a new border gate operation
center, capital of 11.7 million EUR. ...................................................... 37
2.2. Thousands of workers at the DHL Express company went on
strike. ...................................................................................................... 38
2.3. DHL Express increases shipping rates........................................... 39
3. Suggest some recommendations to improve the current situation...... 39
3.1. Address Labor Dispute: ................................................................. 39
3.2. Strengthen Supply Chain Resilience: ............................................ 40
3.3. Enhance Sustainability Practices: .................................................. 40
3.4. Address Price Increases Concerns: ................................................ 40
3.5. Leverage Vietnam's Growth Potential: .......................................... 41
IV. References ........................................................................................... 41

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I. Introduction
1. Importance of this topic related to eSupply chain. The
benefits that eSupply chain brings to consumers.
Digital Twins in the context of the supply chain refer to virtual replicas of physical
products, processes, or systems. These virtual models are created by collecting and
analyzing real-time data from various sources such as sensors, IoT devices, and
production systems. Digital Twins enable companies to gain deep insights into their
supply chain operations, monitor performance, and make data-driven decisions.

Image 1: The benefits that eSupply chain brings to consumers

Supply Chain Digital Twin technology will transform the planning landscape, with
real-time supply chain operations and data, communicated globally and instantaneously
for planning analysis and decision support. Combined with machine learning and
workflow automation, the supply chain digital twin has the potential to revolutionize the
role planning plays across the enterprise. With this type of advanced technology,
companies will have a new direction that is safe, flexible, faster and less risky in global
distribution activities, especially in the field of e-supply chain. It can be said that Digital
Twin can be a technology that helps reshape the current distribution industry.

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 Image 2: Types of Supply Chain Digital Twin technology
Digital Twins in eSupply chain management are crucial for gaining a competitive
advantage, improving operational efficiency, mitigating risks, enhancing customer
satisfaction, promoting sustainability, and fostering innovation. By leveraging Digital
Twins, companies can differentiate themselves, optimize their operations, minimize
disruptions, provide better customer experiences, reduce environmental impact, and
adapt to changing market dynamics. Embracing Digital Twins in the eSupply chain is
key to staying ahead in the modern supply chain landscape.
2. Objectives of the research report.
The research topic we have chosen to delve into this time is Digital Twin, a
technology considered to be an IoT trend for eSupply chain. This research will help us
gain a deeper understanding of the advanced technologies being used in the e-Supply
chain. Additionally, conducting an in-depth study on Digital Twin will enable us to
comprehend the positive aspects and limitations of this technology for various types of
businesses, specifically within the scope of our research, DHL. From there, we will
develop an optimized process and plan for utilizing this technology and propose ideas
for improving the technology or the processes associated with its usage.
3. Justification of the chosen company.
The choice to research Digital Twin technology within the context of DHL is justified
for several reasons:

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Image 3: Top 10 reputable companies in the logistics industry in 2023
• DHL is a prominent global logistics company known for its expertise in
supply chain [Link] a leader in the industry, DHL's operations
encompass various aspects of e-commerce and eSupply chain. Therefore,
studying Digital Twins in the context of DHL allows for a comprehensive
understanding of how this technology can be applied in a real-world, large-
scale logistics setting.
• DHL is researching, improving and using this technology.
DHL, as one of the leading global logistics companies, is actively
researching and implementing this technology in its daily operations.
Furthermore, the company consistently shares insights, conducts research,
and introduces this type of technology. As a result, our team can readily
access detailed and accurate data for subsequent research endeavors.
• DHL's expansive network and global presence make it an ideal subject for
studying the potential impact of Digital Twins on international supply chains.

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 Image 4: DHL express 750 million investment in APAC
The complexity of managing cross-border logistics, diverse transportation modes,
and varying regulatory requirements presents unique challenges that can be addressed
through the application of Digital Twin technology.
• DHL has a large customer base and many global affiliated companies. From
there, the team will more easily access, research and measure factors related
to and affecting the customer group.
DHL operates in a highly competitive market where
efficiency, visibility, and customer satisfaction are
paramount. By exploring the implementation of
Digital Twins within DHL's operations, we can gain
insights into the specific challenges and opportunities
that arise in the logistics sector. This research can
provide valuable recommendations and strategies for
optimizing supply chain processes and enhancing
customer experiences.
Image 5: DHL service point
4. Description of the chosen company (basic information,
history development, products/services.
4.1. Basic information:

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 DHL is an international express delivery and logistics company specializing in the
transportation of goods, with its headquarters in Bonn, Germany. DHL is a division of
the world's leading logistics and postal company, Deutsche Post DHL Group, providing
logistics services with numerous branches across the globe. Since 1988, DHL has
officially been present in Vietnam and has become a leading company in express
delivery and providing freight solutions.
• Company Name: DHL-VNPT Express Company Limited
• Alternative Name: DHL Express
• Address: DHL-VNPT Express Ltd, 06 Thang Long, Ward 4, Tan Binh
District, Ho Chi Minh City, Vietnam
• Phone: +84.8.3844 6203
• Hotline: 1800 1580
• Website: [Link]
• Vision: To become a reliable logistics partner that delivers outstanding
support wherever you need it, whether locally or anywhere in the world.
• Mission: Our mission is to simplify life to the maximum for our customers
and bring greater success in expanding international markets for many
investors and small businesses.
Currently, DHL is a leading global logistics company. DHL employs a workforce of
380,000 personnel in over 220 countries and territories, handling over 1.6 trillion
shipments annually. DHL holds a market share of 40% in Europe and the Asia-Pacific
region.
5. History
DHL is a global logistics conglomerate with many years of experience in the market.
The name DHL is an acronym derived from the surnames of its founders: Adrian Dalsey,
Larry Hillblom, and Robert Lynn. When they established DHL in 1969, they had no idea
that they would create a revolution in the world of logistics services.
The establishment process in Vietnam:

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 • In 1988, DHL operated on the basis of an agency contract with the Vietnam
Posts and Telecommunications Group (VNPT), which is now the Vietnam
Posts and Telecommunications Corporation.
• In 2007, VNPT and DHL established a joint venture called DHL - VNPT
Express.
• In 2010, DHL Vietnam inaugurated an operations center at Tan Son Nhat
International Airport in Ho Chi Minh City with a total investment of over 10
million USD.
• In 2011, DHL Vietnam continued to open a new operations center at Noi Bai
International Airport in Hanoi to expand its business activities in the northern
region.
• In 2017, DHL officially launched its B2B transportation services for the e-
commerce sector in Vietnam.
• In 2020, DHL Express introduced four new service points in Ho Chi Minh
City and Hanoi.
• In 2022, DHL Express inaugurated a new operations center of nearly 2,600
square meters in Bac Tu Liem, Hanoi.
In Vietnam, DHL currently operates two operations centers in Ho Chi Minh City and
Hanoi, three service points, four transfer stations, and over 10 service points, employing
over 1,000 staff. With a warehouse space of 56,400 square meters and 37 infrastructure
facilities, DHL serves over 7,000 customers, handling more than 1.5 billion shipments
per year.
6. Products & Services
DHL's main area of operation is to provide fast, accurate, convenient, and cost-
effective parcel and freight delivery services, along with other activities in the e-
commerce industry and intelligent logistics solutions
6.1. Express:
• Transportation
• Tracking
• Domestic services

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 • Export services
• Import services
• Optional services
6.2. Mail:
• GM MAIL: Comprehensive module for all types of direct mail,
business press shipments, and letters.
• GM PARCEL: International parcel solution.
• GMPLUS: Value-added service for international mail and parcel
delivery.
6.3. Logistics:
• Cargo transportation: Air, sea, road, and rail.
• Warehousing and distribution.
• Supply chain solutions.
• Customs, security, and insurance.

II. Content
1. Analysis of the SWOT, rivals, and markets.
1.1. SWOT Analysis

Image 7: Swot analysis of DHL

a. Strengths
• DHL possesses a vast global infrastructure and workforce.
According to statistics, DHL currently has:
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 o Over 500,000 employees.
o More than 6,500 offices.
o Over 450 centers, warehouses, and terminals.
o 240 gateways.
o 420 aircraft.
o 76,200 transportation vehicles.
o Operations in more than 222 countries and mọi
territories.
o Handles 1.5 billion shipments per year.
o Serves 120,000 destinations.
o Global coverage exceeds 99%.
o Information systems: TMS-LOGILS (proprietary),
WMS-ELIS, TMS-i2, etc.
• Leading technological advancements.
DHL heavily invests in research and development (R&D). According to DHL's
report, the company spent over 1.5 billion USD on R&D in 2022. This funding is
utilized to develop new technologies in areas such as automation, artificial intelligence
(AI), big data, and sustainability.
DHL has been recognized as a leading logistics company for technology innovation
in Gartner's 2023 report.

Image 8: Trends shaping next - generation wireless strategies in logistics

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 • Strong global brand
Interbrand ranked DHL 82nd in its list of the best global brands in 2022, with a
brand value of 7,518 million USD, representing an 11% growth.
b. Weaknesses
• Poor marketing: When compared to FedEx or UPS, DHL does not
have an equivalent level of marketing expenditure and does not
invest heavily in advertising and brand building activities. This
affects the popularity and acceptance of the brand.
• High prices: DHL's prices are relatively high compared to their
competitive counterparts. This can be a weakness if their customers
do not perceive the differentiation between DHL's services and
those of their competing rivals.

Image 9: DHL shipping prices increased

• Dependency on Fuel Prices: DHL heavily depends on fuel prices
like any logistics and transportation company. These prices’
volatility can significantly impact operational osts and,
consequently, profitability.

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 Image 10: ICE Brent Crude
c. Opportunities
• E-commerce Boom: The rise of e-commerce has led to a
significant increase in demand for reliable and efficient logistics
and delivery services. DHL is well-positioned to capitalize on this
trend as an established player in this space.

Image 11: Booming E-commerce

• Technological Innovation: There are significant opportunities in
exploring and implementing new technologies such as
automation, AI, blockchain, IoT, and robotics. These technologies

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 can improve operational efficiency, reduce costs, and enhance
customer service.

Image 12: Asia Pacific Innovation Award Showcase

• Last-Mile Delivery Innovations: Innovating in last-mile delivery
services, such as drones, electric vehicles, or localized delivery
hubs, could increase efficiency and customer satisfaction.

Image 13: New innovations in the last-mile delivery for E-commerce

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 d. Threats
• The world and domestic economic fluctuations have posed certain
challenges to DHL's logistics operations.

Image 14: The world and domestic economic fluctuations

• Negative exchange rate fluctuations: Unfavorable exchange rate
movements can impact DHL's logistics activities. If the USD
continues to strengthen against the VND, the costs of outsourcing
logistics services, including maritime and air transportation, are
forecasted to increase.

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Image 15: Exchange rate for 5 years from 2020 – 2024
• Competitive rivals with significant investments: To compete with
DHL, FedEx and UPS have made substantial investments recently.
They are racing to upgrade service quality and adjusting pricing
strategies to gain a significant market share in Vietnam.

Image 16: Competitive rivals with significant investments

1.2. Rivals

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 According to Sara Arrhenius, the main competitors are UPS and FedEx. Dirk Klasen
considers TNT as another significant competitor. Thus, the comparison among these
four companies is made (see Table 2). By considering the features of the logistics
industry, several significant issues are picked up to make a comparison, such as: safety
& insurance, service of company, environmental policy and company structure.

Image 17: Compare DHL's competitors

According to DHL official website and Sara, DHL was founded in 1969, DHL has
gained No.1 in the industry. UPS was founded in 1907, nowadays UPS has been a
leading global freight provider with access to almost any kind of aircraft or vehicle
around the world. FedEx was founded in 1971. Regarding the size and employee, UPS
has more employees than DHL and FedEx, but the service region is almost the same,
which means around 220 countries. TNT Express employs over 75,000 people, TNT
operates 26,000 road vehicles and 47 jet freighter aircraft. Its worldwide network has
over 2,300 company owned depots in 200 countries. According to UPS official website
and FedEx official website, both companies provide different kinds of verification of
insurance policy. The risk management department of UPS can provide auto liability
insurance for its customers and others. FedEx can also offer similar service.
1.3. Markets

Image 18: Best 3PL Companies for Handling eCommerce Logistics

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 Leading and successful companies worldwide are now leveraging logistics as their
primary competitive weapon, which has contributed to the growth and strength of
logistics companies. Additionally, the internal dynamics of the industry are complex and
diverse, with numerous mergers and acquisitions accelerating the expansion of major
global 3PL (third-party logistics) companies. Examples include Schenker's acquisition
of BAX for 1.2 billion USD and Maersk's parent company's acquisition of P&O
Nedlloyd. However, the most notable acquisition remains DHL's purchase of Exel for
6.6 billion USD, solidifying the dominance of the Deutsche Post Group in the logistics
industry.
a. Political & Legal
Political and legal factors have a significant impact on all business sectors within a
territory. Institutional and legal factors can potentially threaten the existence and
development of any industry. Compared to other countries in the region and around the
world, Vietnam is a country with a stable legal and political environment. Vietnam has
implemented various policies to encourage economic growth, particularly in the service
sector, which is experiencing strong development and requires favorable conditions
from the government.
b. Economics
In October 2022, the total import-export turnover of goods was estimated at $58.27
billion, a slight increase of 0.1% compared to the previous month ($58.21 billion), and
a 5.7% increase compared to the same period last year. In the first 10 months of 2022,
the total import-export turnover of goods reached an estimated $616.24 billion, a 14.1%
increase compared to the same period last year. Specifically, exports increased by 15.9%
and imports increased by 12.2%. The trade balance of goods for the first 10 months of
2022 is estimated to have a surplus of $9.4 billion.

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 Image 19: Import and export of goods October 2022
c. Social
The majority of Vietnamese people tend to have a mindset of choosing fast and cost-
effective delivery services, particularly ones that offer high-quality service. In terms of
quality, DHL provides customers with fast and high-quality transportation services.
However, quality often comes with a higher price, and the cost of DHL's services is not
cheap. This can pose challenges for DHL and influence customers' decisions regarding
the use of their services.

Image 20: Vietnam E-commerce Market Profile

d. Technology
Technology is having a profound impact on supply chain and logistics companies in
2024. Here are some key trends:

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 • Automation: Automation is being widely applied in logistics
operations, from transportation to warehouse management.
Automation technologies such as robots, scanners, and
automated control systems help increase productivity, reduce
costs, and improve safety.
• Artificial Intelligence (AI): AI is being used to enhance the
efficiency of supply chain operations. AI applications can be
used to optimize transportation routes, forecast demand, and
manage warehouses.
• Data and analytics: Data is becoming a valuable asset for
logistics companies. Companies are using data to improve their
understanding of the supply chain, make better decisions, and
provide better customer experiences.
• Connectivity: Connectivity is essential for effective logistics
operations. Companies are using technologies such as the
Internet of Things (IoT) and blockchain to connect their
systems and partners.

Image 21: Top 10 Logistics Industry Trends & Innovations in 2024

e. Environmental

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Image 22: ManpowerGroup highlights top industries attracting employers in Vietnam
The General Statistics Office of Vietnam reports that there are currently over 4,000
professional logistics companies providing international logistics services in the
country. The quality of services provided by these companies has been improving due
to the increased adoption of advanced technology, process improvement, and
particularly for logistics companies serving the European, American, and Chinese
markets.

Image 23: Calculated from enterprise survey data of the General Statistics Office

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 The logistics service in Vietnam currently has a scale of approximately 20-22 billion
USD per year, accounting for 20.9% of the country's GDP (according to some statistics
from 2017). The average annual growth rate of the logistics service sector in recent years
has been between 16- 20%.
According to the World Bank's rankings, Vietnam is currently ranked 64th out of 160
countries in terms of logistics development and is the fourth-ranked country in ASEAN
after Singapore, Malaysia, and Thailand.
With an annual growth rate ranging from 16-20%, the logistics service sector has
been one of the fastest-growing and most stable service sectors in Vietnam in recent
years.
Vietnam is a country with favorable natural conditions and geographical location,
located in the center of the Asia-Pacific region, along international shipping routes. With
a coastline of approximately 3,260 km stretching from north to south, Vietnam has
favorable conditions for facilitating import and export activities by developing logistics
infrastructure such as deep-sea ports, international airports, trans-Asia railway systems,
and logistics centers.
The process of industrialization and modernization is being promoted, accompanied
by ongoing administrative reforms and integration, which serve as a premise for the
development of the logistics industry.
Vietnam has a young and abundant labor force, as well as a golden population
structure.
Businesses have a good understanding of the domestic market and possess strong
trade management capabilities.
2. Identification and evaluation of competitive advantages of
the chosen company.
DHL possesses several competitive advantages that contribute to its success
in the logistics industry. Here are some key factors that set DHL apart from
its competitors:

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Image 24: Key factor that sets DHL apart from its competitors
• Global Network: DHL has a vast global network with operations in
over 220 countries and territories. This extensive reach enables DHL
to provide comprehensive logistics services on a global scale,
allowing seamless movement of goods across borders.
• Infrastructure and Resources: DHL has invested heavily in its
infrastructure and resources, including a large fleet of aircraft,
vehicles, warehouses, and distribution centers. This robust physical
infrastructure enables efficient and timely delivery of shipments.
• Technological Innovation: DHL prioritizes technological
advancements and invests significantly in research and development.
This emphasis on innovation allows DHL to leverage cutting-edge
technologies, such as automation, artificial intelligence, and big data
analytics, to optimize its logistics processes and improve customer
experience.
• Service Portfolio: DHL offers a wide range of services, including
express delivery, freight transportation, e-commerce solutions, and
supply chain management. This diverse service portfolio caters to

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 various customer needs and enables DHL to provide end-to-end
logistics solutions.
• Industry Expertise: With decades of experience in the logistics
industry, DHL has developed deep industry knowledge and expertise.
This enables DHL to understand the unique requirements and
challenges of different sectors and offer tailored logistics solutions to
meet specific industry needs.
• Strong Brand Reputation: DHL has established a strong brand
reputation globally. It is recognized for its reliability, speed, and
quality of service. The trust and credibility associated with the DHL
brand give it a competitive edge in the market.
• Customer Focus: DHL places a strong emphasis on customer
satisfaction and strives to provide excellent customer service. This
customer-centric approach, along with personalized solutions and
responsive communication, helps DHL build long-term relationships
with its clients.
Overall, DHL's competitive advantages lie in its extensive global network, robust
infrastructure, technological innovation, diverse service portfolio, industry expertise,
strong brand reputation, and customer-centric approach, enabling it to stay ahead in the
highly competitive logistics industry.
3. Identification and evaluation of Supply chain in general.
DHL eCommerce Solutions is an expert in e-commerce logistics, connecting sellers
with buyers globally by providing standard domestic and international parcel delivery,
pick-up, and return solutions for business customers. DHL eCommerce Solutions offers
choice, convenience, control, and quality for both sellers and consumers. DHL is
implementing the "Big Data in Logistics" campaign and utilizing data analytics to
proactively identify hidden risks in the supply chain. With the introduction of
"Resilience360," a supply chain risk management tool analyzed by Big Data, DHL can
provide customers with an overview of potential disruptions in their individual supply
chains. DHL is making efforts to optimize its delivery process, aiming to provide
shipments at the most opportune times for each recipient. DHL is actively embracing
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innovations and trends and has great expectations for various technologies that they
believe will transform the logistics industry by 2030.
• Robotics: Approximately 80% of warehouses worldwide are currently
managed manually. DHL is currently experimenting with integrating
robots into warehouse operations. An example of this is the
autonomous trolley that can follow an operator and, when full, return
to the packing station to send another empty trolley, allowing for
continuous picking.
• Unmanned Aerial Vehicles (UAVs) or Drones: DHL has high hopes
for the future application of unmanned aerial vehicles, despite the
existing challenges. This is expected to be a major focus for DHL in
the future.
• Sensor Technology: DHL aims to enhance the use of sensors in
logistics and recognizes the potential of utilizing various sensors, such
as motion and depth sensors, to track remaining quantities on pallets,
trucks, or within a warehouse.
• Augmented Reality: DHL has successfully conducted tests with
augmented reality glasses for warehouse personnel during the picking
process. These glasses can scan barcodes, display pick lists, and show
the precise location where items should be placed.
• 3D Printing: DHL is conducting experiments with 3D printing on the
types of goods available in their warehouses. However, there are still
challenges regarding quality, cost, and product liability. Nevertheless,
DHL recognizes the significant potential of 3D printing.
• Digital Twins: The concept of digital twins involves creating virtual
models that accurately replicate real-world objects or processes in
real-time. Digital twins provide value through visualization, diagnosis,
analysis, prediction, simulation, and optimization without the need for
physical interaction. DHL aims to implement all-in-one solutions for
their business and logistics operations.

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 By incorporating these advanced technologies, DHL aims to enhance efficiency,
accuracy, and overall performance in e-commerce logistics. These innovations have
the potential to revolutionize the industry and improve the customer experience by
enabling faster, more reliable, and cost-effective delivery solutions.
4. Identification and evaluation of the strong point in the E-
Supply chain of the chosen company.
The application of shipping robot technology helps DHL improve shipping efficiency
and optimize labor costs on the last mile:
• A typical example is the application of PostBOT, a robot that supports
the transportation of larger and heavier packages 150 cm high, has 4
wheels and is equipped with an electric motor that allows it to operate
at a speed of 6 km/h and can Carry 150 kg of goods including letters
and parcels of all kinds. Thanks to this application, DHL can reduce
the cost of shipping bulky goods by 20-30%.

Image 25: PostBOT application in practice

• To be able to diversify last-mile delivery methods, specifically to
increase access to difficult-to-reach geographical areas or in cases of
emergency where possible. DHL is testing delivery using a drone
called Parcelcopter. It is estimated that drones will help reduce costs
in emergencies by up to 48.75% (according to Fortune Business

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 Insights). Drone delivery applications may be the leading advantage
in the postal industry in the future.

Image 26: Deutsche drone model

• DHL's 3D printing technology has the potential to change the
landscape of conventional delivery methods and could impact the
cost of ordering parcels, especially for companies that tend to order
large sizes. At the same time, 3D printing technology also offers the
ability to produce complex parcels and components directly at a
location near the customer.
• Applying 3D printing in DHL's delivery, instead of having to transport
goods from distant manufacturing plants, DHL can use 3D printers
to create components and parcels at distribution centers or stores.
Store close to customers and test 3D printed parts based on real-
time data for faster repairs.

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 Image 27: Image: Direct production model at the warehouse.
Digital Twin is a leading technology of DHL and is expected to be one of the key
technology components in their E-Supply Chain development. The initial success of this
technology is demonstrated by DHL being awarded the "2023 Digital Twin Innovation
Award" for their Electronic Supply Chain platform, and it is projected to save costs of
over 1 billion euros by 2025. Specifically, the strengths and advantages of Digital Twin
in their e-Supply chain system are as follows:
Comprehensive Scope:

• Beyond Traditional Assets: DHL expands digital twins

beyond just tracking physical assets like vehicles and
warehouses. They integrate it with processes, data flows, and
even entire networks, creating a holistic view of the E-
Supply Chain. DHL partnered with Accenture to create a
digital twin of their entire Asia Pacific network, including all
warehouses, transportation routes, and even individual
packages. This holistic approach allowed them to optimize
resource allocation and predict disruptions across the entire
region. DHL collects data on worker movements, equipment
utilization, and inventory levels within their warehouses and
integrates them with digital twin technology. This
operational data is used to create digital twins of their
warehouses, simulating different layout configurations and
workflow strategies. Thus, DHL designed a new layout for a
major warehouse in Germany, resulting in a 25% increase in
picking efficiency and a 10% reduction in worker fatigue.
• Multi-layered Data Integration: They combine sensor data
from physical assets with operational data, historical records,
and external factors like weather and traffic. This rich data
pool fuels powerful simulations and insights. They integrated
weather data from over 500 weather stations into their digital

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 twins, leading to a 15% improvement in on-time delivery
rates for air shipments during high-wind seasons.
Advanced Simulation Capabilities:

• Scenario Planning and Optimization: DHL utilizes their

digital twins to run simulations of various scenarios,
allowing them to test different strategies, optimize routes,
and predict potential disruptions before they occur. utilizing
their digital twins, DHL optimized their trucking routes
across Europe, reducing overall driving distance by 5% and
fuel consumption by 3%.
• Real-time Decision Support: Their digital twins provide
real-time data and insights, enabling proactive decision-
making and adjustments to optimize logistics operations
continuously. Their digital twins helped predict a potential
engine failure in a cargo ship mid-voyage. Proactive
maintenance prevented a costly breakdown and shipment
delay.
• Predicting Package Delays based on Social Media
Sentiment: DHL analyzes real-time social media data
around major events such as festivals or protests in key
locations and integrates its Digital Twin system. This
sentiment data is then fed into their digital twins, predicting
potential disruptions on shipping routes and allowing them
to proactively reroute packages to avoid delays. Thus, during
a recent political protest last August in South Korea, DHL's
digital twins predicted the possibility of traffic congestion
based on social media rumors. By rerouting 15% of
shipments, they avoided widespread delays and maintained
on-time delivery rates.

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Collaborative Platform:

• Shared Visibility and Transparency: DHL's digital twins

act as a shared platform for all stakeholders in the E-Supply
Chain, fostering collaboration and improved communication
throughout the [Link]'s digital twin platform,
"MySupplyChain," enables all stakeholders to track
shipments in real-time, leading to a 20% increase in
customer satisfaction with supply chain visibility.
• Enhanced Customer Experience: Customers can track
shipments in real-time and receive estimated delivery times
based on real-time data from the digital twins, leading to
increased transparency and trust. Customers using
"MySupplyChain" can schedule deliveries and receive
proactive notifications about potential delays, improving
communication and trust.
Integration with other Technologies:

• Synergy with Robotics, UAVs, and Sensors: DHL

seamlessly integrates their digital twins with other leading-
edge technologies like robotics, UAVs, and sensor technology.
This creates a connected ecosystem that further enhances data
collection and operational efficiency. Their digital twins work
in conjunction with autonomous robots in their warehouses,
reducing manual labor and increasing picking accuracy by
12%.
• Augmented Reality and 3D Printing Integration: Exploring
the potential of integrating AR and 3D printing with digital
twins opens up new opportunities for remote maintenance,
visualization, and on-demand spare parts production. DHL is
exploring the use of AR for remote maintenance and
visualization of their digital twins, and experimenting with 3D
printing spare parts based on real-time data for faster repairs.
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 Competitive Advantage:

• DHL's comprehensive and integrated approach to digital

twins gives them a significant competitive advantage in the E-
Supply Chain market.
• Innovation Leadership: Their commitment to exploring
synergies with other emerging technologies positions them as
a leader in E-Supply Chain innovation.
• Potential for Scalability and Expansion: The flexible and
data-driven nature of their digital twins allows for easy scaling
and expansion to cater to larger and more complex logistics
networks.
However, Digital Twin has some challenges remain:
• Data Security and Privacy: Ensuring data security and
privacy within the digital twin remains a crucial challenge.
• Talent Acquisition and Training: Implementing and
maintaining digital twins requires specialized skills and
expertise. Attracting and retaining talent will be vital.
• Cost and Infrastructure Management: Building and
maintaining a robust digital twin infrastructure can be costly.
Balancing costs with benefits will be key.
Despite these challenges, DHL's strong foundation in digital twin technology
positions them well to revolutionize the E-Supply Chain landscape and remain a leader
in the logistics industry. Moreover, they are actively collaborating with universities and
research institutions to further develop and refine their digital twin technology.
5. Other technology in the E-Supply chain.
5.1. Maersk uses blockchain to connect supply chain
partners.
Blockchain technology is expanding and interacting with other technologies, such
as artificial intelligence (AI), Internet of Things (IoT), and big data. This will enable
businesses and organizations to use blockchain to create new and more innovative

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solutions. Accordingly, the blockchain platform helps connect partners in the supply
chain.

Image 28: Maersk and IBM blockchain solution for digitizing global trade
Case study, Highland Foods faced challenges in their supply chain, specifically
related to the lack of visibility of their goods and the need to immediately transport
perishable goods upon arrival. These challenges make it difficult to manage supply
chains effectively, leading to delays and disruptions in their operations. To solve these
problems, Highland Foods used TradeLens, a blockchain-based platform that provides
real-time visibility and facilitates communication between supply chain participants.
With TradeLens, Highland Foods has access to real-time data about their shipments,
allowing them to streamline their shipping process and improve overall supply chain
management.
5.2. Walmart’s multi-cloud.
Walmart's scale requires a complex cloud architecture, but the principles and
benefits of building a cross-platform cloud system are applicable to other companies.
Walmart may have to pay millions more USD for public cloud services.
Therefore, Walmart has built a multi-platform cloud system including Azure,
Google Cloud and Walmart Cloud Native Platform (WCNP). This WCNP system helps
Walmart manage large workloads and reduce costs. Walmart also built an OpenStack-
based server network across their distribution facilities and stores. Integrating these

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clouds helps Walmart solve the complexity of data migration and provide flexibility to
developers.
WCNP's main goal is to improve developer productivity by
eliminating inefficient work and minimizing human error.

Image 29: Walmart’s multi-cloud triplet deployment architecture

[Link] Order Management (DOM)
Distributed order management (DOM) systems use order fulfillment logic
(OFL) or logic-based rules to coordinate and optimize the order fulfillment
process. OFL and logic-based rules enable DOM to make intelligent decisions
about source selection, order fulfillment locations, and delivery routes.

Image 30: Modern OMS models have DOM capabilities

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 A Distributed Order Management (DOM) system supports retailers with larger
fulfillment networks and multiple sales channels. It enables them to handle complex
fulfillment operations, including various multi-channel customer journeys such as buy-
online-pickup-in-store (BOPIS), ship-from-store, ship-to-store, return-to-store, and
more. DOM can also provide robust contact center support to efficiently manage
customer inquiries and offer preorder/backorder capabilities, allowing customers to
reserve or order products in advance.

Image 31: Comparison of traditional OMS and DOM

[Link] management system (WMS) combined with warehouse
operations system (WES)
Warehouse Management System (WMS) controls the movement and storage of goods
within distribution centers (DCs). Meanwhile, Warehouse Execution System (WES)
manages inventory records and material handling equipment. When combined, these
two software platforms play a crucial role in typical retail supply chains.
"WMS is essential in the retail industry. This tool can integrate with various methods
such as e-fulfillment, omni-channel, and multi-channel," according to Dongre. While
traditional WMS systems couldn't manage mixed and unlabeled inventory, Dongre
believes that new-generation solutions can perform functions like dynamic inventory
positioning.
Luke Nuber, a technology expert at Fortna, points out that WES is a supportive
system that links distribution technology. This expert recognizes the importance of this
solution for retail supply chains in the future. Nuber believes that there can be significant
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efficiencies and productivity gains when fully synchronizing the entire infrastructure.
"WES truly accomplishes this by bringing people, processes, technology, and assets into
one single control system capable of providing end-to-end visibility throughout the
entire system. It allows retailers to prioritize tasks and optimize them quickly."
A good WES system provides flexibility in replacing different systems or components
if they become non-operational. This is an impressive advantage for retailers seeking
long-term solutions to cope with distribution challenges. It can be seen that technology
that combines WES and WMS simultaneously is extremely important and results in
optimal efficiency for logistics businesses. This combination can bring tremendous
progress to businesses pursuing optimal growth and minimizing excess budget in the
industry. It can be seen that technology that combines WES and WMS simultaneously
is extremely important and results in optimal efficiency for logistics businesses. This
combination can bring tremendous progress to businesses pursuing optimal growth and
minimizing excess budget in the industry.

III. Conclusion
1. Summary of the evaluation
1.1. DHL’s competitive advantages
DHL possesses a strong set of competitive advantages that contribute to its leadership
in the logistics industry. Its extensive global network spanning over 220 countries and
territories enables the company to provide comprehensive logistics services on a global
scale. DHL's investments in robust infrastructure, including a diverse fleet, warehouses,
and distribution centers, ensure efficient and timely delivery of shipments. The
company's focus on technological innovation, leveraging automation, AI, big data
analytics, and digital twins, enhances logistics processes and improves the overall
customer experience. DHL's wide-ranging service portfolio, covering express delivery,
freight transportation, e-commerce solutions, and supply chain management, caters to
various customer needs, offering end-to-end logistics solutions. Lastly, DHL's deep
industry expertise, gained through decades of experience, enables the company to
understand and address the unique requirements and challenges of different sectors.

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Together, these competitive advantages position DHL as a leader in the logistics
industry, capable of providing tailored and reliable logistics solutions.
1.2. Supply chain capabilities in general
DHL's supply chain capabilities contribute to its competitive edge in the logistics
industry. The use of digital twin technology allows DHL to create virtual models that
replicate real-world objects and processes, enabling visualization, analysis, prediction,
simulation, and optimization without physical interaction. This enhances operational
efficiency and decision-making. DHL also experiments with advanced technologies
such as 3D printing, shipping robots, drones, sensor technology, and augmented reality
to improve efficiency, accuracy, and overall performance in e-commerce logistics. These
technologies enable faster and more precise order fulfillment and delivery processes.
Moreover, DHL's strong customer focus is evident in its emphasis on customer
satisfaction, providing personalized solutions, responsive communication, and building
long-term relationships with clients. This customer-centric approach enhances trust,
loyalty, and overall service quality. With these supply chain capabilities, DHL continues
to innovate and deliver efficient, customer-oriented logistics solutions.
1.3. Strong point in the E-Supply chain of the DHL
This evaluation provides valuable insights into the innovative technologies and
strategies employed by a chosen company to enhance its E-Supply chain. From the
application of shipping robot technology, including PostBOT and Parcelcopter, to the
potential integration of 3D printing, the company is at the forefront of revolutionizing
the logistics and postal industry. These advancements not only improve efficiency and
reduce costs but also demonstrate the company's commitment to embracing cutting-edge
solutions for its supply chain operations. As the company continues to invest in
technological innovation and infrastructure, it is poised to maintain its leadership
position in the logistics industry and provide tailored and reliable logistics solutions to
its customers .
2. Additional information or insights.
2.1. DHL Express Vietnam inaugurated a new border gate
operation center, capital of 11.7 million EUR.

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 DHL Express has recently inaugurated a new customs clearance facility near Noi Bai
International Airport in Hanoi. This center is an integral part of DHL Express' extensive
service network in Vietnam, which includes another customs clearance center in Ho Chi
Minh City, 10 operational centers, 17 service points, and 25 weekly flights. This
expansion caters to the increasing demand for international express delivery services in
Vietnam, particularly in the northern region.
The total investment in this facility amounts to 11.7 million euros, with a usable area
of 4,500 square meters, double the size, and four times the maximum operational
capacity of the previous facility. The new center is equipped with modern and highly
automated technology to reduce cargo processing time, enhance operational efficiency,
and improve service quality.
Experts believe that the new facility will enhance DHL Express' competitive
capabilities and strengthen the company's leading position in the logistics industry in
Vietnam. It also demonstrates DHL Express' commitment to facilitating international
trade for Vietnam while promoting environmentally friendly business operations.
2.2. Thousands of workers at the DHL Express company
went on strike.
Over 1,100 unionized DHL Express workers at the Cincinnati/Northern Kentucky
International Airport (CVG) went on strike on December 8, 2023. The strike highlights
the growing tensions between labor and management in the logistics industry. It also
raises concerns about the treatment of workers during busy periods like the holiday
season.
The main drivers of the strike are wages, benefits, and working conditions. Workers
are demanding better pay, increased healthcare contributions, and improved job security.
The union accuses DHL of prioritizing profits over its employees, particularly during
the busy holiday season. DHL claims it offered a fair contract proposal and blames the
union for the work stoppage.
CVG is a critical air cargo hub for DHL, handling around 360,000 pounds of cargo
daily. The strike could disrupt DHL's operations at CVG, leading to delays in package
deliveries and potentially higher shipping costs. The strike comes during the peak
holiday season, potentially impacting shipping times and costs. The strike could also
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have a wider impact on the logistics industry, potentially affecting other air cargo hubs
and carriers. Besides, The outcome of the strike could set a precedent for future labor
negotiations in the industry.
2.3. DHL Express increases shipping rates.
DHL Express, a logistics company, has announced an increase in average parcel
delivery prices as part of its annual price adjustment. The average price increase varies
by country, with countries like India experiencing a 6.9% increase, the United States at
5.9%, and Vietnam and Malaysia at 4.9%. Price adjustments will differ based on local
conditions in each country. Additionally, certain services and fees will also be adjusted.
RS Subramanian, Senior Vice President for South Asia at DHL Express, stated,
"Overall, the global macroeconomic situation has started to stabilize, albeit with some
uncertainties. We aim to provide stable and reliable services to all customers worldwide.
With the annual price adjustment, DHL Express will continue to invest in innovative
solutions, enhance network flexibility, and focus on environmental responsibility to
deliver flexible and sustainable logistics solutions."
3. Suggest some recommendations to improve the current
situation.
Despite significant technological investments and certain achievements, DHL has
also faced various crises that have affected its supply chain horizontally. This has had a
noticeable impact on DHL, as the company's ranking in the logistics industry has
consistently declined over the past three years. To overcome these challenges and
expand market share in the logistics sector, especially in countries with unique
characteristics like Vietnam, DHL needs to take appropriate measures.
3.1. Address Labor Dispute:
Open Communication and Negotiation: Engage in fair and transparent dialogue with
striking workers, addressing their concerns about wages, benefits, and working
conditions. Offer competitive compensation packages and consider profit-sharing
schemes.

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 Improve Work Environment: Enhance workplace safety and implement measures to
reduce workload and stress during peak seasons. Foster a culture of respect and
employee well-being.
Alternative Dispute Resolution: Utilize mediation or arbitration services to find a
middle ground without prolonged strikes disrupting crucial holiday season operations.
Set OKRs instead of KPIs to increase work motivation and increase efficiency.
3.2. Strengthen Supply Chain Resilience:
Diversify Transportation Options: Reduce dependence on airfreight hubs like CVG
by exploring alternative routes and modes of transportation (rail, sea) for specific
regions. Develop contingency plans for future disruptions.
Invest in Automation and Technology: Implement automated cargo handling systems
at key nodes to improve efficiency and reduce reliance on manual labor. Leverage data
analytics to optimize routing, inventory management, and forecasting.
Promote Collaboration and Visibility: Encourage stronger partnerships with other
logistics providers and government agencies to build a more transparent and
collaborative supply chain network in Vietnam.
3.3. Enhance Sustainability Practices:
Offset Carbon Emissions: Invest in renewable energy sources and carbon offset
programs to minimize the environmental impact of increased logistics activity. Explore
alternative fuels and electric vehicles for last-mile deliveries.
Optimize Packaging and Waste Reduction: Implement eco-friendly packaging
solutions and waste management practices throughout the supply chain. Partner with
manufacturers and customers to promote sustainable product design and reduce
unnecessary packaging.
Transparency and Reporting: Clearly communicate and report on DHL's
sustainability efforts and environmental impact reduction strategies to build trust with
stakeholders and customers.
3.4. Address Price Increases Concerns:

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 Targeted Price Adjustments: Implement differentiated price increases based on
service tiers, customer profiles, and shipment volumes. Offer loyalty programs and
discounts to mitigate customer concerns about rising costs.
Transparent Cost Breakdown: Provide customers with clear explanations of cost
drivers behind the price adjustments, demonstrating the value proposition of DHL's
services and investments in network improvement.
Focus on Service Value: Emphasize the reliability, speed, and convenience of DHL's
services, particularly during peak seasons, to justify the price adjustments and maintain
customer loyalty.
3.5. Leverage Vietnam's Growth Potential:
Support Local Talent and Skill Development: Invest in training and education
programs to develop a skilled workforce for the logistics industry in Vietnam. Partner
with local universities and vocational institutions to create talent pipelines.
Tap into Domestic E-commerce Boom: Develop customized logistics solutions
catering to the burgeoning e-commerce market in Vietnam. Offer flexible delivery
options and last-mile solutions to connect domestic businesses with global markets.
Advocate for Infrastructure Development: Collaborate with the Vietnamese
government and other stakeholders to improve transportation infrastructure, including
roads, ports, and airports, to facilitate more efficient and cost-effective international
trade.
By implementing these solutions, DHL can address the current challenges, improve
labor relations, build a more resilient and sustainable supply chain in Vietnam, and
capitalize on the country's economic growth potential.

IV. References
1. Butcher, L. (2020, June 9). DHL identifies potential for digital
twinning in supply chains. Parcel and Postal Technology International.
2. DHL Case Study | PPT. (2021, January 13). SlideShare. Retrieved
January 10, 2024.
3. How Digital Twin Technology is revolutionizing the logistics industry.
(2020, February 4). LinkedIn.

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4. Schreiber, R. (2022, February 27). Which is better, DHL or FedEx for
international shipping? What is the fastest international shipping
option? Quora.
5. Top 10 Best 3PL (Third-Party Logistics) Companies [2023]. (2023,
September 19). ClickPost.

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