Service design is a complex task that can benefit from a more flow charting known as service blueprinting. Jane Kingman - Brundage (1989) developed an effective approach for blueprinting

1. DES’S
INSTITUTE OF MANAGEMENT DEVELOPMENT AND
REASERCH
PGDM-II (2014-2016)
Service Marketing & Management
Assignment
Logistics Organization Blueprint
Submitted To: Submitted By:
Prof. Giribala Dewasthale Tushar Bhadalkar - 106

2. Introduction –
 Service design is a complex task that can benefit from a more flowcharting known as
service blueprinting.
 This technique allows you to clearly visualize your service processes and delivery
from the customers' point of view. The uniqueness of Service Blueprinting is the
unrelenting focus on the customer as the center and foundation of your business.
Why company uses Blueprint?
 Identify and capture productivity and customer experience improvements?
 Design and launch new services and processes in a streamlined and customer-focused
manner?
 Build and embed a customer focus into the fabric of your organization?
 Finding areas for service improvement and innovation?
Jane Kingman Brundage Model -
Jane Kingman - Brundage (1989) developed an effective approach for blueprinting that can
be applied to library services. The key components of the blueprint including:
 Definition of standards for each front stage activity
 Physical evidence for front stage activities
 Principal patron actions
 Line of interaction - The line between the
customer and the staff member.
 Front stage actions by customer-contact
personnel
 Line of visibility - Separating what the customer
can see (onstage) from what the customer can't
see (backstage)
 Backstage actions by patron-contact personnel.
 Line of Internal Interaction - Separating the staff
member from other services and people.
 Support processes involving other service personnel & information technology.

3. PACKAGING - Major Challenge Faced by Micro, Small & Medium
Enterprises
According to a report conducted by the New Delhi based Centre for Market Research &
Social Development, the main problems faced by MSMEs are: lack of available sources of
credit, high cost of packaging materials, lack of skilled labour, irregular power supply, and an
underdeveloped sense of how to market, brand, and distribute. Only MNC’s are able to afford
Packaging Specialist & Equipment’s to make proper packaging.
Indian Logistics Market Size and Segmentation –
The Indian logistics market recorded revenues of about US $104.10 billion in 2014,
witnessing a growth of about 4.9 percent over the previous year. Transportation accounts for
about 60 percent of the market revenues.
Exhibit 1: Segmentation of Indian Logistics Market, 2014 –
In above analysis there does not exist any service which represents Packaging offered by the
3PL - Logistics Service Providers. The 3PL use contracted vendors for packaging only in
case there is damage of packaging or packaging improper for containerization.

4. DHL are the first letters of the last names of the three company founders, Adrian Dalsey,
Larry Hillblom and Robert Lynn. DHL has the world’s largest express and logistics network.
DHL has developed a reputation for consistently developing innovative solutions that
streamline operations and improve control. DHL is service based company and services are
critical for competitive advantage in companies from all sectors. Superior customer service is
one of the key drivers of competitive advantage.
Service Offerings by DHL –
DHL is the leader in courier, express and parcel delivery services – both local and global.
Whether it's documents or parcels, DHL has the service you are looking for.
1 - DHL Express Internationally -
DHL makes international shipping convenient with a variety of services and options to suit
your needs.
2 - DHL Same Day Service -
When you're racing against time, choose DHL Same Day, the fastest delivery service
available in today's air express industry
3 - Logistics Services -
We offer a complete range of logistics and outsourcing solutions to meet your warehousing
and distribution challenges.
4 - Optional Services -
DHL Express products are complemented by a range of payable Optional Services that
provide flexibility to address specific customer needs.
5 - Dangerous Goods -
Let DHL assist your business when your shipment contains hazardous materials that require
special handling. To find out more, call the DHL Dangerous Goods Hotline at 1-866-817-
3794
6 - Shipment Value Protection -
When your shipment needs extra coverage, DHL can help. Shipment Value Protection covers
the actual cash value of the shipment or repair costs, whichever is less, in the event of
physical loss or damage
7- Packaging – (NEW SERVICE ADDITION)
DHL India can focus on Micro, Small & Medium Enterprise’s (MSME) for offering
specialized packaging service. This will save cost for manufacturers (manpower &
equipment) and gives opportunity for DHL to get more business as well as increase
profits on basis of bulk packaging. (Target Customers – MSME’s).

5. Exhibit 2: New Process Inclusive of Packaging Service –
As you can clearly see the above process is what is proposed by me to be added by DHL
India in order to gain Unique Selling Proposition among its other competitors like FEDEX,
UPS, etc.
Original Blueprint of DHL –
Line of Interaction
Line of Visibility
Line of Internal Interaction
The above blue print is currently followed by DHL without the packaging service offerings.
Onstage
Contact
DHL Pickup Man
Collects Cargo
Gives Way-Bill
(Receipt)
Agent - Estimate
Cost of Delivery
Support
Services
Barcode
Machine
Database
Physical
Evidence
DHL Branch,
Headoffice
DHL Website, DHL
Ad Banners
DHL Cargo Planes,
DHL Trucks
DHL Uniforms,
DHL Forms
Customer
Action
Call For Pickup
1800-111-345
Handover Export
Docs & Cargo
Receives Way-Bill
For Tracking
Makes Payment
To DHL Agent
Backstage
Contact
DHL Sorting
Center
Information In
DHL System
DHL Contracted
Rates DHL System

6. New Blueprint with Packaging Service –
Introduction of New Service will bring new elements in the service
Line of Interaction
Line of Visibility
Line of Internal Interaction
LINE OF INTERACTION (CUSTOMER POINT OF VIEW)
Physical Evidence:
DHL basically cargo & courier service which has now additional Packaging Material &
Equipment’s apart from DHL Branch Office, Head Office, Vehicles, Planes, Website.
Customer Action:
Along with the Regular Call for booking customer has to Request for Packaging if he
requires the service. He also has to give the dimensions and gross weight of the cargo and
other details while booking. Once the DHL truck arrives the customer has to handover the
export documents and cargo and fill few forms of handover. Receipt of Waybill and Payment
to DHL.
Physical
Evidence
DHL Branch,
Headoffice
Packaging
Material
DHL Cargo
Planes, DHL
Trucks
DHL Uniforms,
DHL Forms
DHL Website,
DHL Ad Banners
Customer
Action
Call For Pickup
1800-111-345
Request for
Packaging
Handover Export
Docs & Cargo
Receives Way-Bill
For Tracking
Makes Payment
To DHL Agent
Onstage
Contact
DHL Pickup Man
Collects Cargo
Gives Way-Bill
(Receipt)
Agent - Estimate
Cost of Delivery
Backstage
Contact
DHL Sorting Center
DHL Packaging
Center
Information In DHL
System
DHL Contracted
Rates DHL System
Support
Services
Barcode Machine
Fumigation/ Anti
Corragation
Database

7. Onstage Contact:
DHL person picks up cargo and loads it into Truck. He examines the documents and
handover the Waybill to the customer. The customer on basis of waybill asks for the total
costs of the shipment.
Backstage Contact:
After the sorting of cargo is done, the cargo is taken into Packaging Department – in this
area the goods that are requested for special packaging is done. The packaging specialist will
properly use right material and size so that the cargo is safe and secure. New labels are pasted
which has original airway bill number. All this information is entered in DHL systems along
with Scan copies of Documents & Rates are applied (Loading, Packaging, Freight, etc).
Support Services:
Barcode Technology is used for easy operational management in sorting and packaging
facility. The Database (servers) store all the data that the DHL employees give from time of
booking till the delivery. Fumigation/ Anti Corrosion is done for keeping the cargo safe
from water rusting and insects that may harm due to closed containerization.
Service Failure:
Service failure is inevitable and occurs in both the process and the outcome of service
delivery. They include situations when the service fails to live up to the customer’s
expectations. At the end of the day a customer's final decision after a service failure is to
reside or leave. Exit is “the voluntary termination of an exchange relationship''.
To counterfeit Service Failure either DHL can use Poka Yoke or Service Recovery Strategy.
1. Service Recovery Strategy – Its a reactive method. Actions that service providers take, in
response to defects or failures to alter negative attitudes of dissatisfied customers and to
ultimately retain these customers. It is done by Apology; Correction; Empathy;
Compensation; Follow-up; Acknowledgement; Explanation; Exceptional treatment;
and Managerial intervention.
2. Poka Yoke – Also known as fail-safing, in its simplest form, is about designing a
production process so that as specific error cannot occur. It involves a three steps process of
initially identifying an error, tracing the error to its source, then developing and implementing
the related fail safe. There are 2 types of service Poka Yoke:
• Service Provider (SP) – Task, Treatment, Tangible
• Customer – Preparation, Encounter, Resolution.

8. Table 1 -
Packaging Service Failures Poka-Yoke
1. The customer Forgets to Request for
Packaging at the time of booking.
Customer (Encounter) – Customer should be
asked by DHL customer service agent if there
is requirement of Packaging Service.
2. The customer fails to keep the cargo
ready at specific date of pickup.
Customer (Preparation) – Customer should be
called to get confirmation before arranging
for pickup. (Saves time & fuel)
3. The customer Dimensions, Weight given
are incorrect causing incorrect ordering of
packaging box sizes by DHL from its
vendors.
Customer (Preparation) – DHL pickup person
should be trained for inspection of cargo for
dimensions and get it signed by customer in
real time.
4. DHL misses out packaging request given
by customer.
SP (Treatment) – DHL should have unique
number generated for Packaging Request.
5. DHL does packaging for non-requested
cargo.
SP (Task) – DHL should have unique number
generated for Packaging Request.
6. DHL vendors are out of stock for
packaging material.
SP (Tangible) – Minimum Stocks should be
maintained & Duration for completion of
Packaging should be conveyed to customer.
7. DHL packaging department has unskilled
labors and insufficient equipment’s to
handle special packaging requests (Like
Dangerous Flammable Goods).
SP (Tangible) – Labors should be given
training for Packaging of General &
Dangerous Cargo. DHL should specifically
ask if the cargo requires special packaging.
8. DHL uses wrong packaging material for
cargo (causing damage).
SP (Tangible) – DHL should specifically ask
if the cargo requires general / special
packaging material.
9. DHL does the packaging but puts
incorrect labels than originally made.
SP (Task) – The cargo should be numbered
before packaging which is linked with
original airway bill no. After packaging the
airway bill no is labeled again with same.
10. DHL packaging gets damaged in transit
due to quality issues.
SP (Treatment) – DHL should setup random
inspection team for quality checks & DHL
should send complete investigated report of
the damage cargo with apology letter.

9. DHL Servicescape –
1. The customers use the experience of website as well as customer service interaction
for evaluation of intangibility of DHL services.
2. The Yellow DHL Trucks/ DHL Cargo Planes/Containers are addition to Servicescape.
3. The Yellow uniform employees grabs attention of people.
4. The DHL.com website which is designed for great User Experience.

10. Quality Parameters & Evaluation of DHL’s Packaging Service –
Recent developments have enhanced the role of packaging. Packaging no more fulfills its
basic functions of containment, protection, convenience and marketing alone.
1. Protection – Its basic quality parameter. Shock/Drop, Heat, Water, Moisture,
Pressure, etc.
2. Convenient Function - The easy of Transportation, Stocking (User-end, Warehouse)
After Re-use Productivity. The goal is to ship maximum boxes in per vehicle.
Vehicle - Length & Breadth No of Boxes Dimensions of Boxes
3. Environmental Friendly Packaging - More and more people are making a purchase
decision based on the green packaging material as a matter of course. It needs to be
recyclable to allow reuse and bio-degradable and less polluting, apart from being safe.
(a) (b)
Total Packaging/Month Environmental Friendly Pack. Other Packaging
Cost benefit of using Environmental Packaging.
4. Anti-counterfeiting Packaging - Packaging is being designed to include
authentication seals, material substitution and tamper proof seals to indicate any
attempts to remould the product. Anti-theft devices, electronic article surveillance tags
are also being built into the packaging to prevent losses and minimize pilferage.
5. Regulatory Environment - The Packaging and Labeling Regulations Act of India
governs the information to be displayed on the packaging of the product. The
Government of India has tried to consolidate and lay down certain laws and standards,
especially in the food and drug segment for Export.
Total No of Shipments Shipments Damaged
Total Anti-Count. Packaging/Month No of Damage Cases

11. The Value of New Packaging Service for DHL –
1. Diversification in Service – To tap the MSME’s market that already exists; which
demands better service as they are unable to afford expertise in packaging.
2. Unique Selling Proposition – No forwarder is investing in this area, they either have
vendors who are doing this. Packaging Domain Experts will be added advantage in
DHL.
3. Maximization of Profits – Value Added Service will also give considerable amount
of profits to DHL.
4. Economies of Scale - As DHL will increase their packaging service they will be able
to get maximum price discounts from packaging material vendors, optimum
utilization of packaging equipment’s and labor.
DHL Packaging Service Pricing –
Packaging has various methods and depending on the requirement of customer & material
used & dimensions of the package the pricing is decided –
1. The common type of material used in industrial packaging is Wooden Pallets, Metal
Can & Pallets, Cartons, Films & Foils.
2. Type of Packaging – Vaccum, Blister, Tamper Evidence, Aseptic, Shrink, Strip, Gas
Flush, Moisture Proofing, etc
DHL Packaging Service Promotion –
1. DHL Cargo is B2B sales which is based on Personalized Selling.
2. DHL can influence sales by cost and benefit analysis for packaging service.
3. DHL spends on TV, Banner & Print media advertising.
4. DHL can Sponsor Events & Trade Shows.