DHL Group has increased both revenue and operating profit in the first quarter of 2019 compared with the prior-year period.
The company generated revenue of EUR 15.4 billion between January and March, an increase of 4.1 per cent on the previous year.
Operating profit (EBIT) was up 28.1 per cent to EUR 1.2 billion. In particular, the earnings contributions from the DHL divisions were again encouraging – while the surge in earnings was driven by non-recurring income from completing the Supply Chain partnership with S.F. Holding in China initiated at the end of 2018. Previously announced restructuring costs at Supply Chain and in the new eCommerce Solutions division slowed EBIT growth.
“The first quarter played out as we expected. We achieved growth in all five divisions. This shows that we are very well positioned in attractive markets and that our fundamental growth drivers are intact. E-commerce continues to boom all over the world and although some momentum has been lost, global trade is still on the rise, just as we expected for 2019. We are therefore on track towards our target of generating more than EUR 5 billion in EBIT in the coming year,” Frank Appel, CEO of Deutsche Post DHL Group said.
DHL Express has appointed Alberto Nobis as its new CEO for Europe, paving the way for his return to the Global Management Board of DHL Express.
ALberto was the Global CFO for DHL Express from 2009 to 2012 before relocating to his home country of Italy in 2013. As CEO DHL Express Italy, Alberto Nobis helped to drive the division’s growth in the Italian market. Effective January 1, 2019, he has taken over responsibility for Express Europe from John Pearson, who became the Global CEO of DHL Express.
“For DHL Express, quality and growth are the pillars of our past and future success. Since his move to Italy as Managing Director, Alberto has proven that he is capable focusing on both. His efforts to push the Express Italy business on all fronts have contributed to Italy becoming one of our largest market and one in which we expect continuing high performance. We are looking forward to seeing Alberto use his in-depth expertise to take DHL Express to the next level of its growth Europe-wide in 2019 and beyond,” John Pearson, Global CEO DHL Express said.
Alberto has over 10 years of experience at DHL Express, including several management positions as CFO and CEO for the time-definite shipping provider of the Deutsche Post DHL Group. In his new role, he is responsible for almost 50 countries in Europe with focus on the Region’s performance across the four dimensions that define the strategy: people at the core are motivated to provide great service quality, with a direct positive impact on customers’ loyalty and, finally, on DHL’s network profitability.
“It is both a great honor and an exciting challenge to be appointed CEO for DHLExpress Europe. In this position, I can count on the decade of experience I’ve gained at DHL Express and on the support of our people and network to increase our performance for customers throughout Europe. I am greatly looking forward to working with John to achieve the next level of growth for DHL Express,” Alberto Nobis, CEO Europe at DHL Express said.
DHL Supply Chain has announced a partnership with Chemist Warehouse, which will see the company manage the supply chain for fast-moving consumer goods (FMCG) products and for front-of-store products going into their over 400 pharmacies nationally.
“There are some immediate synergies that enable this to be a beneficial partnership from day one. Many of the FMCG and pharmaceutical manufacturers already store their products in our warehouses. This means we can go from a pre-wholesale environment direct to the Chemist Warehouse pharmacies, and ultimately take a movement out of the supply chain,” Saul Resnick, CEO, DHL Supply Chain Australia & New Zealand, said.
“We are excited about our new partnership with DHL, an expert in the field of global logistics, and we look forward to working with DHL on further improvements to our supply chain to support the rapid and dynamic growth of the Chemist Warehouse business,” Damien Gance, Director and Co-founder of Chemist Warehouse said.
The partnership will immediately streamline the supply chain into Chemist Warehouse and MyChemist pharmacies, by reducing the reliance on wholesalers, Saul said.
DHL Supply Chain has announced plans to deploy emerging technologies in 350 of its 430 facilities in North American facilities and transportation control towers as part of a $300 million investment.
Selected technologies will vary by customer needs, based on the outcomes of research and pilot programs completed by DHL’s internal innovation teams and collaboration with dozens of external innovators.
The availability – and practical utilisation – of these technologies is expected to help the diverse customer base including those addressing e-commerce and omnichannel challenges to minimise complexity, remove capacity constraints, and maximise service to their customers.
According to DHL, accelerating the implementation of selected technologies such as robotics, augmented reality, robotics process automation, IoT and DHL’s proprietary end-to-end visibility solution – MySupplyChain – is the objective of DHL Supply Chain’s global digitalisation strategy.
“This investment is about a holistic view of emerging technologies that enables our customers to achieve their growth and profitability goals. Our customers’ needs are not homogenous as each business and segment has unique challenges and levels of maturity. Therefore, it is important that our customers can benefit from our experiences and expertise with a variety of emerging technologies,” Scott Sureddin, CEO, DHL Supply Chain North America said.
Joshua Zhou, Managing Director, AuMake International Limited with Denise McGrouther, Managing Director, DHL eCommerce Australia.
DHL eCommerce, a division of logistics company Deustche Post DHL Group, has partnered with AuMake, an ASX listed retailer connecting Australian suppliers directly with Chinese consumers, to enable deliveries direct from Australia to China. AuMake’s growing database of over 80,000 members will now be able to ship direct to China with DHL eCommerce Parcel International Direct, a tracked service with transit times of 5-7 days to 90% of China.
“We’re proud to partner with AuMake to offer Parcel International Direct China to their customers and provide reliable and high quality direct shipping. We understand that trust is highly important for Chinese shoppers, particularly in the delivery process. Our shipping service offers great transit times, high quality handling and tracking visibility to connect Australian brands to Chinese consumers,” said managing director of DHL eCommerce Australia Denise McGrouther.
Australian products are highly sought after by Chinese online shoppers, contributing to 20% of cross-border purchases into China in 2017, up 9% from 2016. In addition, there are an estimated 400,000 ‘daigous’ operating in Australia who act as an overseas personal shopper to buy and ship products from Australia to China.
Through its growing footprint of showroom-style stores, AuMake and Kiwi Buy across Sydney, customers can make purchases and arrange a pick up by DHL eCommerce for international deliveries from AuMake’s retail stores with the launch of the new service.
“The demand for Australian products from China is insatiable and through AuMake’s retail stores and the collaboration with DHL eCommerce, we are making it easier to ship from Australia to China. AuMake’s customers can shop and ship with the additional choice of using a well known and trusted logistics provide like DHL eCommerce, providing peace of mind that their purchases will be safely and quickly delivered,” said managing director of AuMake International Limited Joshua Zhou.
DHL Express has introduced a Boeing 767-300F freighter aircraft that has 50% more cargo capacity for its Trans-Tasman lane. The Boeing 767, which replaces the Boeing 757, will offer express, overnight delivery between Sydney and Auckland five times a week as the Trans-Tasman remains one of the key trade lanes for DHL Express Australia.
Based on the latest figures from the DHL Export Barometer 2017, New Zealand remains the top export market for Australian businesses, with 61% of exporters sending goods across the Trans-Tasman trade lane and one in four of them naming New Zealand as their largest export market.
CEO and senior vice president of DHL Express Oceania Gary Edstein said: “As an international air express carrier, aviation is at the core of our business. The Boeing 767 aircraft will enhance the efficiency and speed of delivery, with the latest technology for communications, navigation, enhanced safety systems, and automated roller systems to assist with loading and unloading.
“We are incredibly proud to be the only logistics company with a dedicated aircraft across the Trans-Tasman lane. Over the last decade, trade between Australia and New Zealand has steadily increased, making New Zealand one of our largest services trade partner. And with this purpose built freighter aircraft, we will ensure that we remain competitive for many years to come.”
DHL says the Boeing 767 offers operational flexibility, and an all-digital flight deck allows it to support time-critical deliveries. It also boosts high fuel efficiency with a proven combination of light, durable aluminium alloy and composite structure, making it lighter than comparable freighters.
The aircraft is equipped with powered cargo-handling equipment, both on the main deck and in lower holds, making cargo handling easier and more seamless. The cargo-handling system and operator interface provide complete automation of the cargo-loading process. The freighter’s main deck has both interior and exterior master control panels along with local control panels to provide maximum flexibility.
To demonstrate the strength of electric vehicles, Qantas and Tesla conducted a world first, where the all-electric car successfully towed the Dreamliner as part of a Guinness World Record attempt, as the heaviest tow by an electric production passenger vehicle.
DHL Supply Chain has joined in a partnership with Qantas through its Future Planet program to make its supply chain carbon neutral, for and together with its customers and business partners.
DHL invited its Australian customers to contribute to the cause based on their emissions, on World Environment Day last week, ensuring all warehousing and DHL road transport operations are carbon neutral well into 2019.
CEO of DHL Supply Chain Australia & New Zealand Saul Resnick said: “We are dedicated to our environment conservation responsibilities and take them very seriously. We intend to reduce all logistics-related emissions to zero by 2050. This is a step to help offset for the short term; our long-term goals will continue to focus on reducing the emissions altogether. We are very proud to share the same principles with our customers and appreciate their dedicated support towards the cause and the program.”
Qantas’ Future Planet program has already offset over three million tonnes of carbon emissions over the past ten years, with the help of participating organisations that contribute towards verified carbon offset projects that collectively help nourish communities while mitigating environmental impact. DHL’s warehousing and road transport will, along with its customers, join the initiative and continue to contribute to the Australia-wide cause.
Goodman Group is a partner of DHL, sharing the common goal and sentiment of offsetting its carbon footprint and giving back to the community and is excited to support this initiative. General manager of the Goodman Group Australia Jason Little said: “We feel great about being able to do our part in cleaning the climate and creating a sustainable future for Australia. Qantas’ Future Planet program aligns very closely with our organisational values and we are very excited to be a part of this cause.”
DHL’s continued efforts towards cutting its carbon footprint has achieved significant carbon efficiency goals in the recent years. These efforts include solar panel installations, use of natural light, solar reflective paint, and heating and energy-saving lighting amongst other initiatives, to reduce CO2 emissions in warehousing.
“Through our GoGreen initiatives, DHL is working towards reducing all logistics-related emissions to zero by the year 2050. To support this mission, we have set an interim goal to increase our carbon efficiency by 50 per cent compared to 2007 levels by 2025,” Saul added.
International express provider DHL Express will open a new purpose-built service centre on the Gold Coast, within the key industrial area of Molendinar. Expected to be fully operational in the second half of 2018, DHL says the service centre will have a particular focus on small and medium-sized enterprises between the Gold Coast and the mid-north coast of New South Wales.
Upon completion, the 3,000 square metre state-of-the-art centre will feature nine on-grade roller doors to the warehouse area and two crossovers that allow separate areas for customer access and truck deliveries. The new centre will also be fitted with parcel lockers accessible 24/7 for customers to pick up their shipments any time.
CEO and senior vice president of DHL Express Oceania Gary Edstein said: “Our Gold Coast Service Centre’s prime location in the industrial zone will allow us to continue providing the best service for our customers, who can then further grow their businesses.”
Construction has already commenced on the service centre, with the new freestanding building located on Anisar Court, between Jade Drive and Harper Street, just off Ashmore Road.
E-commerce company Amazon is reportedly trialling its own delivery service, news site TechRadar reports.
According to news company the Wall Street Journal, Amazon’s new service encompasses pick-up of packages from businesses sell on its site through its Fulfilment by Amazon (FBA) service, and delivery to customers, taking over the task usually performed by dedicated delivery companies such as United Parcel Service (UPS) and FedEx.
Although there have been no official reports from the company itself, the Wall Street Journal reports that the pilot scheme has already been launched in London, and soon will head to Los Angeles and other US cities.
Global logistics company DHL has launched a new tool to indicate current and future development of global trade, the Global Trade Barometer.
The Barometer, developed in partnership with professional services company Accenture, uses artificial intelligence (AI) to analyse logistics data to provide a forecast of future trade.
“DHL has both a deep understanding of the driving forces behind global data volumes and the industry expertise to analyse and interpret market data,” said Tim Scharwath, CEO, DHL Global Forwarding – Freight. “The DHL Global Trade Barometer shows impressively how digitalisation – with the use of Big Data and predictive analytics – opens up entirely new opportunities.”
The Barometer examines containerised ocean freight data for import and export of commodities that serve as the basis for further industrial production, for example brand labels for clothing, bumpers for cars and touchscreens for mobile phones. Through AI and other statistical analysis processes, the data is compressed to a single value for global trade, and one each for the seven countries examined, who make up more than 75 per cent of world trade.
Results for January 2018 suggest continued growth in global trade over the next three months.
“The insights from the DHL Global Trade Barometer will help DHL customers to optimise their business processes, for example providing guidance for investment and supply-chain decisions,” the company said in a statement. “DHL itself will leverage the indicator to fine-tune is own resource planning for its international logistics operations.”
The company added that it anticipates the tool will have high significance beyond logistics, due to its suitability for use by banks, associations and economic research institutes.
“In a world characterised by volatility and uncertainty, we are contributing to greater transparency and predictability – for the benefit of our customers, our business and society,” said Scharwath.