Question 1 (20 marks) Tao Bao (CN) is considering a new supply chain and logistic quality reengineering program to minim

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Question 1 (20 marks)
Tao Bao (CN) is considering a new supply chain and logistic
quality reengineering program to minimize its transportation
damages & costs of its world-wide customers’ purchases delivery
from China. Contracting with a smaller number of certified couriers
allows Tao Bao to secure a competitive offer.
DHL
DHL is the world’s largest logistics company. It delivers over
1.3 billion parcels per year. The carrier employs 550,000
employees. DHL operates a gamut of services. DHL is recognized with
its commitment to reducing emissions. Since DHL is a non-American
company, it is not permitted to make domestic flights between U.S.
airports.
FedEx
FedEx holds the most planes on its fleet: 670. FedEx was the
pioneer that introduced an overnight shipping service as well as
providing real-time location updates. It has over 425,000 staffs
worldwide and operates 5,000 hubs and facilities. It has 180,000
motorized FedEx vehicles pick up and deliver more than 14 million
shipments per day.
UPS
UPS, founded in 1907 was the largest among the three couriers.
Today, UPS has a presence in 220 countries and territories. It
delivered over 5.2 billion parcels in 2018, an average of 21
million per day. 481,000 UPS employees work at UPS locations
worldwide. Like DHL and FedEx, UPS has a claims process to apply
for refunds.
DHL, FedEx, and UPS have their own unique pros and cons,
with:
 FedEx being strong with overnight shipping and expedited
2- and 3-day deliveries
 UPS having a strong ground shipment game, and
 DHL having the broadest global presence among the three
and being the most vocal about its
environmental commitments.
DHL GROUP
UPS GROUP
FedEx GROUP
Eco-Friendly operation
Excellent
Good
Average
International courier
Highly Experienced
Experienced
Experienced
Full range of service
P-U/D Time
Above Avg.
Average
Average
No. of employee
Domestic flight in US.
Not Available
Available
Available
Number of planes (2021)
500
684
Corporate Strength
Global Presence
Ground shipping
Overnight shipping
Price
Lower
A factor being overlooked while choosing a carrier is their
delivery performance. Especially during times of high volume such
as the holiday season or the pandemic period, shipping carriers
have been known to have struggled to deliver on time amidst supply
chain limitations.
(a) Identify six main and other related factors that the
Tao Bao logistic Director should consider in courier selection. (9
marks)
(b) What are the supporting grounds for hiring a reliable
courier? (4 marks)
(c) In the above scenario, what is the most important
factor in the courier evaluation process? Explain. (3 marks)
(d) If you were selecting the courier, what other
alternatives would you considered? Which shipper would you
consider? Why? (4 marks)