Solution
Paragraphs highlighted in green indicate diagrams or tables that can be shared in the “Case exhibits” section.
Paragraphs highlighted in blue can be verbally communicated to the interviewee.
Paragraphs highlighted in orange indicate hints for you on how to guide the interviewee through the case.
I. Structuring
Which elements should a mitigation strategy encompass? What would you analyze?
1. Review strategic fit
- Benefit of Wonderworld engagement?
- Benefit of GoGreen program?
- Development of alternative solutions (e.g. offsetting)
2. Create transparency on effect of Wonderworld
- Network mapping and “center of gravity” analysis
- Mode overview
- Footprint assessment
- Benchmarking to similar events
- Setting it into context to DPDHL’s overall footprint
3. Impose customer requirements and satisfaction
- Operations requirements of involved parties (bands, suppliers, festivals...)
- Strategic direction of organizer (e.g. more or less festivals? focus regions?), i.e., will the overall model change?
4. Define optimization potential
- Levers within DHL’s realm
- Levers within DHL’s realm, requiring alignment with customers (bands, Wonderworld organization)
- Levers outside of DHL‘s realm
5. Come up with a communication plan
- To the public
- To employees
- To customers
II. Quantitative Analysis (Transparency)
Share Exhibit 1, 2 & 3 with the interviewee.
Exhibit 1: Wonderworld Schedule 2020
Exhibit 2: Carbon Emission Factors per Transport Mode
Exhibit 3: DPDHL Carbon Footprint 2017
Here’s some basic information on average CO₂ emissions per mode (Exhibit 2). Please assess the overall footprint of our logistics activities for Wonderworld.
- Candidate has to differentiate into 10 Overseas festivals (road+air) and 9 European festivals (only road) using Exhibit 1, 2 and 3
- Assumptions to be made (marked in yellow below)
- Transported weight per band and festival: 20 t
- Travelled distances per festival per band
- Overseas: 2x 200 km road + 2x 8,000 km air
- European: 2x 1,000 km road
- Total emissions = ∑ distances * weight * emission factor per mode
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Once the interviewee has defined a solution, Exhibit 4 can be shared.
- Total emission for Wonderworld: 31,248 t CO₂
- Total footprint of Wonderworld amounts only for 0.2 % of DPDHL‘s total footprint
III. Strategic Position and Options for the way forward
For what reasons might DHL have chosen to sponsor Wonderworld?
- High value logistics revenue
- Demanding logistics needs of festivals
- Core competency of DHL (fast and reliable delivery incl. customs clearance worldwide)
- Fit to brand values
- Good fit to overall brand promise “Excellence. Simply Delivered.”
- High international coverage, specifically in emerging markets (India, Brazil, Turkey, Abu Dhabi etc.), similar to DHL
- Customer orientation, teamwork, seamless operations, delivery of a high quality service
Given the result of the footprint analysis, what strategy should DPDHL pursue?
The primary goal of this question is to understand the candidate‘s ability to grasp the overall context. He/she might be for/against Wonderworld Logistics activities. However, a stable line or argumentation has to be shown.
Possible argumentation:
- The total footprint of Wonderworld amounts only for 0.2% of DPDHL’s total footprint
- Efficiency objective of GoGreen program can be applied to all sorts of transportation services, i.e. also those for Wonderworld events
What could DHL do to optimize its carbon footprint in the Wonderworld Music Festival?
- More efficient fleet
- Smarter network design
- Higher utilization of assets/stronger bundling of volumes
- Higher awareness (e.g. driver training)
- Less pollutive type of energy (e.g. bio fuels)
What could Wonderworld do to optimize its carbon footprint?
- Regarding logistics
- Shift some Air Freight volumes to Ocean Freight
- Source and dispose locally (e.g. stop shipping drinking water, stop shipping back damaged equipment)
- Reduce the number of festivals
- Shift focus of events closer to homes of bands (“nearshoring“)
- Optimize schedule
- Encourage shared use of instruments by bands
- Reduce shipping of additional backup audiovisual and sound system equipment and event decorations
- Regarding overall footprint
- Turn it into a virtual event, i.e., no spectators on-site
- Limit max. amount of energy to be used per festival to induce an “event/music for efficiency“
- Reward efficiency in general
