Deutsche Post DHL Group, Germany, presented its new group strategy.
With “Strategy 2025 – Delivering excellence in a digital world,” the group will be stepping up the digital transformation, spending around EUR 2 billion on digitalization by 2025.
“Deutsche Post DHL Group has never been in better shape. We are convinced that future growth will come from a consistent focus on our profitable core logistics businesses, and digitalization will become the greatest lever,” says Frank Appel, chief executive officer. “We need not reinvent ourselves. We will digitalize ourselves. Experience shows that we are particularly successful whenever we use our resources and innovative capabilities to drive forward our profitable core logistics business. For this reason, we have gradually disengaged non-core activities over the last few years, and have targeted investment into boosting the profitable long-term growth of our core businesses, such as the quality of our networks and the modernization of our intercontinental fleet for Express.
DHL confirmed four trends impacting logistics—globalization, e-commerce, digitalization and sustainability. And, each of the company’s five divisions—Post & Parcel Germany (P&P), Express, Global Forwarding, Freight (DGFF), Supply Chain and eCommerce Solutions—set its own path based on the individual profitable core.
For example, P&P transports, sorts and delivers documents and goods in Germany plus the export business from Germany.
DHL Express is the Time Definite International (TDI) service for premium, cross-border delivery of time-critical parcels and documents.
DGFF is international transportation via air freight, ocean freight and road freight, including customs clearance and related value-added services such as warehousing and cargo insurance.
DHL Supply Chain focuses on warehousing and transportation, bundled with products around service logistics and packaging.
eCommerce Solutions is centered around domestic last-mile parcel delivery in selected countries outside of Germany (Europe, United States and selected Asian emerging markets) and non-TDI cross-border services primarily to, from and within Europe.
“We are the only company that is able to offer single elements as well as the entire e-commerce supply chain on a global scale. This is our key differentiator,” says Appel.
Furthermore, Deutsche Post DHL Group will be comprehensively modernizing its IT systems, integrating new technologies, offering employees targeted advanced training and steadily improving its services, processes and standards between now and 2025. DHL is implementing greater automation and improved transaction processes, such as warehouse automation and robotics programs to improve efficiency.
DHL will implement data analytics to foster routing optimization through advanced algorithms, operational volume prediction and optimized resource planning.
“Moving forward, we will bundle our technological capabilities as a group in global Centers of Excellence. Here, we will centrally develop key technologies like Internet of Things (IoT) and then provide them to our divisions. This way we can leverage the strength of our Group to push forward our digitalization,” says Appel.
