Logistics company DHL has predicted that delivery volumes in Australia over the 2017 Christmas season will be up 20 per cent from the 2016 season, with peak volumes of overseas parcels expected on 18 December, as a final wave of last minute international orders are placed over the preceding weekend.
“Consumers are gradually turning to overseas online retailers for their Christmas purchases,” said Gary Edstein, CEO and Senior Vice President, DHL Express Oceania. “Online shopping enables them to buy products from around the world that may not be available in domestic brick and mortar stores. And with online retailers now offering a wide range of convenient delivery options to consumers, it’s now easier than ever to fill the Christmas stocking.
“At DHL Express, we are experiencing the direct effect of the move to online shopping, and in response to this, we have put in place a peak Christmas season strategy to cater to this tremendous volume growth.”
DHL’s couriers will be working extended delivery hours six days a week on the run-up to Christmas, adding additional weekend and evening delivery routes and more than 300 additional drivers working in the lead-up to Christmas Eve.
“The teams are the very heart of our delivery operations; our courier drivers, our warehouse staff and the pilots flying our planes all work tirelessly to ensure every parcel is delivered within our transit time targets,” said Edstein. “It is incredibly positive to witness such strong industry growth year-on-year.”
eBay and DHL eCommerce have partnered with parcel delivery network Hubbed, which provides parcel delivery to its network of petrol stations, convenience stores and newsagents for parcel drop offs and pick ups.
Through the eBay partnership, eBay sellers are now able to print shipping labels and drop off their customers’ goods at any of Hubbed’s 1,000 stores, the majority of which are open 24/7.
The new partnership with DHL eCommerce enables eBay sellers and other Australian online sellers with a Hubbed account to send their parcels to shoppers across 220 countries and territories by dropping off their parcels at a Hubbed store.
“The Hubbed model has put the customer at the heart of the delivery cycle,” said David McLean, Founder and CEO of Hubbed. “The seamless integration of our extensive parcel drop off network with our delivery carriers, and our low flat rates, is an attractive alternative to eBay sellers.
“Our major advantage is our network of stores that operates late – and over 60 per cent operate 24/7. Until now, online sellers were required to drop off their parcels during business hours at the post office or waited around for a pick up. Now, sellers can drop off at a location close by at a time that suits them including weekends. Hubbed completes the full delivery cycle, from domestic and international shipment, to click and collect, returns, and a pick-up point for failed deliveries.”
Charles Brewer, CEO of DHL eCommerce, added: “With online shopping sales by Australians reaching around $20 billion a year, and the number of parcels expected to rise in tandem, both sellers and shoppers need greater convenience and choice in the way they deliver and collect parcels. We are pleased to provide a boost to e-commerce in Australia through convenient drop-off and pick-up points now available extensively across the country to enable delivery to over 220 countries and territories worldwide.”
DHL Global Forwarding (Australia) has been granted full accreditation by the Department of Immigration and Border Protection (DIBP) under the Australian Trusted Trader Program, with the signing of a formal agreement on 5 September, 2017.
DHL has been involved with the government program since the initial pilot commenced in 2015 and is the largest service provider to be granted entry into the scheme.
Australian Trusted Trader is a voluntary trade facilitation initiative recognising businesses with a secure supply chain and compliant trade practices that rewards accredited businesses with a range of trade facilitation benefits. Australian Trusted Trader further supports and facilitates the handling of clients’ international supply chains by service providers.
Within Australia’s Authorised Economic Operator (AEO) programme, Trusted Traders work to secure the international supply chain, while facilitating the movement of legitimate trade. Australia is the only AEO programme to grant accreditation to service providers.
“The Australian Border Force is pleased to welcome globally recognised service providers like DHL Global Forwarding to the Australian Trusted Trader program,” said Sneha Chatterjee, Chief Superintendent, Australian Border Force.
“Trusted Traders receive a range of benefits, one of which is a seat at the table with the Department of Immigration and Border Protection. This is a forum to discuss issues and initiatives that directly affect trade communities, and provides an opportunity to shape the future direction of policy and programmes.”
Tony Boll, CEO, DHL Global Forwarding South Pacific, added: “This accreditation is recognition of the commitment DHL has made to supply chain security, high compliance standards and display of best industry practices as set by the DIBP.
“Government-led programs such as this are incredibly important for our industry and we are proud to be awarded Trusted Trader status.”
Through a new partnership with DHL eCommerce, a division of the international logistics company Deutsche Post DHL Group, courier service Sendle plans to offer international parcel delivery services for small businesses in Australia.
The move will mean small businesses will be able to offer door-to-door delivery, with Sendle managing domestic pickups in Australia and DHL eCommerce providing access to over 220 countries and territories in its global network.
“Delivery performance is a critical success factor for any e-commerce business and an extremely crucial part of the consumer’s shopping experience,” said Charles Brewer, CEO, DHL eCommerce. “Australian SMEs are winners in this partnership as we combine DHL’s global expertise and reach with Sendle’s deep knowledge of small businesses to create simple and affordable solutions for international parcel delivery.”
James Chin Moody, CEO and Co-ounder, Sendle added, “From day one, our mission has been to unlock the power of big business delivery infrastructure for millions of small businesses. Our agreement with DHL eCommerce, a true world leader in logistics, is a major step forward in levelling the playing field in Australia. By doing so, we aim to help more small businesses expand globally and thrive in the Amazon age.”
The partnership with DHL eCommerce comes as Sendle announces it has just passed one billion kilometres of carbon-neutral parcel delivery on behalf of tens of thousands of small businesses.
Deutsche Post DHL Group recently announced its goal to reduce all logistics-related emissions to net zero by the year 2050.
“With the partnership now signed, we expect Sendle’s international shipping service to be available to selected Sydney customers in time for Christmas deliveries and to rollout nationwide in 2018,” Chin Moody added. “Watch this space.”
Sendle is inviting small businesses to register to be part of a pilot program.
Logistics company, DHL, will consider an ‘Uber-style’ model for its ‘final mile’ parcel delivery offering in Australia, according to The Australian.
DHL eCommerce Global Head, Charles Brewer, told The Australian that DHL was considering a ‘capital light’ model due to the company’s double-digit growth in Australia.
“Do we want to play in this space in Australia?” Brewer said. “That is the question we need to answer over the next few weeks and months. Last mile is the one that excites most people we talk to.
“The volume is there. The market exists. The question is, can you create a sustainable proposition in the space? Australia is a great market, a big market, I like the look of it, but we need to do our maths,.”
DHL Parcel and Volkswagen are launching a joint pilot project in Berlin in which Volkswagen will deploy 50 VW Polos to be used as mobile addresses for the delivery of their DHL parcels.
The project partners have worked in recent months to develop and test a solution for in-car delivery. The vehicles are fitted with the required equipment for in-car delivery, called ‘We Deliver’ by Volkswagen. To use the new service, customers need to register with DHL Parcel and enter their trunk as the delivery location in their customer profile.
“Since we’ve already tested car drop delivery successfully in other projects in Germany and continue to offer it for Smart drivers, we’re pleased to win Volkswagen as another partner – our partnership allows us to offer this attractive service to an even broader target group,” says Achim Dünnwald, CEO, DHL Parcel. “As an innovation leader in the parcel sector, our objective at DHL Parcel is to be able to offer in-car delivery as an option to as many recipients as possible in Germany, offering personalised processes to make the sending and receiving parcels even easier for our customers.”
The VW Polo driver will be notified via email about the delivery process and receive a delivery notice when a parcel has been delivered to the vehicle’s trunk. During the ordering process in an online shop, the driver can specify a two-hour time slot between 10am and 9pm during which DHL will deliver the parcel. For delivery, the vehicle will need to be parked in a place accessible to the parcel courier. Possible delivery sites include the office parking lot, a park-and-ride facility, or any other address at which the vehicle is located during the time slot specified during the order.
The DHL parcel courier receives the delivery location information from the DHL Delivery app, which provides vehicle’s exact position via GPS. The app also issues a single-use, time-limited code to access the vehicle. In combination with the customer-specific car ID, which the recipient receives from Volkswagen and provides as part of the delivery address, the courier can open the vehicle’s trunk. Once the courier closes the trunk, the access code is cancelled. Not only can the VW Polo drivers receive parcels, they can also leave returns in the trunk to be picked up.
Australian exporters are taking the world in their stride, thanks to e-commerce and innovation. Research from the DHL Export Barometer 2017 shows export confidence is at its highest level since 2011, with overall positivity in international trade evident.
The 14th annual research study into Australian exporter confidence found that two-thirds (67%) of exporters surveyed expect sales to increase over the next 12 months – just 2% below the peaks of positivity seen in 2007 and 2010.
Furthermore, exporters have reported a growth in actual orders, with 56% of exporters recording an increase in orders over the past 12 months, which is the highest percentage in over six years.
Being active online appears to pay off, with 83% of exporters who generate all their orders from online channels expecting an increase in revenue.
CEO for DHL Express Oceania Gary Edstein said: “Optimism among the majority of exporters is a great indication that the Australian e-commerce market is in a good shape. We are seeing innovative businesses gain significant traction on the global scale, encouraged by the ease of access to larger international markets via e-commerce and online channels.
“In particular, we’ve seen a rise in the number of newer exporters who have been exporting for less than five years. They now make up around one-third of Australian exporter landscape.”
As an indication of the overall optimism, employment growth is expected to increase with about 51% of exporters indicating they will employ more staff next year. 63% of exporters also expect to increase their workers’ wages. E-commerce becomes the norm and online marketing increases
The DHL Export Barometer 2017 shows online commerce now permeates the export sector.
A whopping 78% of Australian exporters generate orders from online channels – and nine in ten (89%) of those who export consumer goods source orders online. Furthermore, 85% of small businesses (those with up to four employees) generate business online.
Mr Edstein said: “The profile of businesses involved in exporting has changed massively in the past five years due to e-commerce. We have seen significant growth in SME customers and businesses that send goods directly to consumers – as compared to via a retail presence or an international partnership previously.”
Proving the popularity of online marketing to bring in these sales, a quarter of exporters say they spend 60% or more of their marketing budget on these online platforms. For instance, exporters have also been investing on enhancing their websites (visualisation and usability), improving fulfillment and customer service. New Zealand is top export market as Australian businesses consolidate target markets
In an uncertain economic environment, Australian exporters are focusing their efforts on a handful of markets, with traditional English-speaking destinations emerging as top priorities.
New Zealand remains the top export market for Australian exporters, with 61% sending goods across the Tasman, and one in four naming it their largest export market. North America comes second (among 48%), with Europe (38%) and the UK (36%) following closely behind. In North East Asia, China (35%) and Hong Kong (27%) takes the lead, ahead of the Japan and South Korea who have Free Trade Agreement (FTA) with Australia. Exporters look to new markets to continue growth in the long term
Results from this study showed that the proportion of exporters selling to multiple regions has reduced sharply from 76% in 2015 to 68% in 2017. Similarly, the average number of countries that businesses export to is now 4.4, falling from 5.2 in 2016.
However, over the next 12 months, 54% of exporters claim they plan to target new territories, particularly in New Zealand and South East Asia. This includes 66% of those who have been exporting for less than five years.
Exporters appear to understand that to continue to grow, they need to diversify trading efforts, offsetting any potential negative impact from disruptive trade policies in an international location. It is also a positive sign that one in four exporters thought there were no challenges to exporting, suggesting that traditional concerns such as regulatory and legal barriers are subsiding.
Following augmented reality pilots in several regions, DHL Supply Chain, a subsidiary of Deutsche Post DHL Group, has expanded use of its ‘vision picking’ technology in warehouses around the world.
The smart glasses provide visual displays of order-picking instructions along with information on where items are located and where they need to be placed on a cart, freeing pickers from paper instructions, increasing efficiency and comfort.
In the international trials, DHL Supply Chain saw an average increase in productivity of 15 per cent, and higher accuracy rates, and the solution reportedly halved onboarding and training times.
“Digitalisation is not just a vision or program for us at DHL Supply Chain, it’s a reality for us and our customers, and is adding value to our operations on the ground,” said Markus Voss, Chief Information Officer and Chief Operating Officer, DHL Supply Chain.
“Customers have been very happy about the productivity gains and are equally excited about using innovative technology at their warehouses.”
Pilot programs took place across the US, mainland Europe and the UK over different industries including technology, retail and consumer.
DHL Supply Chain has reported that employees were found to be enthusiastic about using state-of-the-art technology and were pleased with how lightweight the smart glasses were, and how much more comfortable the process became with hands-free picking.
“We are very satisfied and happy that the pilot phase went so well and that we can now say augmented reality technology is one of our standard offerings at
DHL Supply Chain,” added Voss. “As one of the first logistics companies using the technology, we have truly established a new way of order picking in the industry.”
Following the success of its vision-picking program, DHL is looking into additional applications for augmented and virtual reality such as training and maintenance.
DHL Express has signed an extended service partnership with pick-up and delivery agent, Road Runners, in Tasmania.
The new partnership will bolster DHL’s coverage in the major metropolitan areas of Hobart, Launceston and Davenport, extending it across regional areas in Tasmania, including Flinders Island and King Island.
Road Runners is a wholly Tasmanian-owned company with more than 25 years of experience in delivering to Tasmanian addresses.
“Road Runners has been our trusted partner in Tasmania for the past decade,” said Gary Edstein, CEO and Senior Vice President, DHL Express Oceania. “This new agreement with Road Runners further solidifies DHL’s commitment in delivering to Tasmanian customers, and reflects our ongoing growth in volumes in the country’s southernmost state.”
DHL Express Australia has experienced a significant increase in the number of shipments addressed to Tasmanian recipients since deliveries began close to 10 years ago, the company reported and in the last five years, DHL shipments to Tasmania have increased by 20 per cent.
“In recent years, DHL Express has witnessed a marked increase in deliveries as a result of the e-commerce boom,” said Edstein. “Consumers are growing increasingly confident when it comes to making purchases online and Tasmanian consumers are no exception to this trend, with the vast majority of Tasmania-bound shipments delivered to a residential address.”
As part of the agreement, Road Runners will operate four DHL-branded vehicles on behalf of the company to help cater for the rapidly growing number of shipments destined for Tasmania’s major cities. In Hobart, two dedicated vehicles have been deployed to cover the city’s routes, alongside one in Launceston and another in Davenport.
Family supplies brand Clorox has chosen to outsource distribution of its products around Australia to DHL Supply Chain.
According to a statement, the partnership reflects Clorox’s focus on customer service, innovation and consistency.
Clorox’s decided to outsource its warehousing operation to achieve a more standardised and customer-centric approach, allowing the company to meet customer demands while removing the stress of distribution.
“We were looking for a partner who understands its customers’ business and responds quickly,” said Mike Fraser, Regional Logistics Manager, Clorox. “DHL Supply Chain has enabled us to maintain high levels of speed, reliability and quality control in our logistics processes, allowing us to stay competitive in the industry and help transform our end-to-end logistics operations.
“Our goal is that when a customer reaches for a product at the supermarket, it’s there. With DHL Supply Chain, we are confident that all of our products will be delivered on time and in full. We continue to look to them as a logistics partner of choice for future growth.”
DHL Supply Chain implemented a range of warehouse and supply chain improvements to Clorox’s operations across Australia, including warehousing, value-added services and inventory reduction, helping Clorox improve productivity by developing a more flexible operating model.
“The implementation of the 3PL (third-party logistics) service provided to Clorox has been achieved in just over three months, a process that would traditionally take six,” said Saul Resnick, CEO, DHL Supply Chain Australia and New Zealand.
“For fast moving consumer goods (FMCG) businesses, the logistics process is critical as consumer purchasing decisions are largely based on availability. We ensure all stock is delivered to stores when promised and with as little manual intervention as possible,” he concluded.