DHL strengthens its position in automotive logistics [Integrator]
DHL Freight has been awarded an extension of its contract with the BMW Group and will continue to manage the vehicle manufacturer's overland transport in 17 countries covered by the companies' previous contract.
DHL Freight wins contract with the BMW Group
Successful renewal of existing business and expansion of collaboration
Custom-tailored Connected Supply Chain solution to monitor and optimize flow of goods
Bonn - DHL Freight has been awarded an extension of its contract with the BMW Group and will continue to manage the vehicle manufacturer's overland transport in 17 countries covered by the companies' previous contract. As a result of the tender, DHL Freight also won an expansion of the collaboration, taking on supply chain management of the BMW Group in seven additional areas. A new DHL Freight custom-made logistics solution was successfully implemented as part of the contract conclusion.
"This achievement represents another step towards Freight 2020, our strategy to become the provider of choice in overland transport by offering the best quality and reliability for the customers who depend on us," declares Uwe Brinks, DHL Freight. "With BMW, we set out to create a solution specifically designed for their needs, one that would provide complete transparency throughout the supply chain, allowing the customer a consolidated overview of extremely complex processes. We have achieved this with Connected Supply Chain, a solution that gives BMW and their partners at DHL Freight the ability to manage potential issues and identify opportunities for further optimization."
Connected Supply Chain (CSC) depicts the entire supply chain digitally, delivering real-time, end-to-end visibility and management control to all relevant stakeholders. Aspects such as order and status data are visible via a central portal, and orders receive a single reference number from beginning to end. Drivers can access the system via a mobile application designed specifically for them. DHL Freight's solution was developed together with AXIT, a specialist for in cloud-based IT solutions for managing cross-enterprise logistics processes, in order to feed CSC with the relevant information.
The transparency and control afforded by CSC give BMW a real-time overview of developments. They can identify potential risks or emergency situations immediately and rapidly counteract them with the support of DHL Freight. As part of the solution, DHL Freight has established a Control Tower, where all streams of goods in Europe are monitored, providing a unique opportunity to consolidate complex data and identify areas where operations may be optimized. BMW can thereby identify potential for savings and monitor the performance of suppliers and carriers in real-time.
DHL Freight's new contract with the BMW Group covers the management of about 90,000 shipments per month within a simultaneously dependable and highly flexible network. Temperature-controlled shipping and dedicated transports are available in all areas covered by the contract.
Posted at 21:32 パーマリンク
DHL CARE Awards: three major air carriers distinguished at the Life Science and Healthcare Conference [Integrator]
Lufthansa Cargo & Swiss WorldCargo, Emirates SkyCargo and Cathay Pacific Cargo recognized as industry leaders in transport of temperature-sensitive life sciences products by DHL
DHL's own Thermonet air freight service now includes more than 30 IATA CEIV certified network stations for vital medical products
Bonn - DHL Global Forwarding, the air and ocean freight specialist of Deutsche Post DHL Group, has awarded the 2018 Carrier Award for Reliability and Excellence (CARE) to Lufthansa Cargo & Swiss WorldCargo, Emirates SkyCargo, and Cathay Pacific Cargo. The CARE Awards recognize the industry's top transporters of temperature-sensitive life sciences products. The winners were distinguished at the 18th Life Science and Healthcare Conference held at Lake Maggiore, Italy on June 28, 2018.
"The transport of medical products and medications is an especially demanding undertaking - at DHL, we care about making sure these sensitive products avoid temperature excursions, remain in the right conditions and arrive safely and timely to their patient's hands," said Scott Allison, President, Life Sciences & Healthcare, at DHL. "These are life-saving products, and customers are increasingly demanding faster delivery with a higher level of transparency at the same time. The volume of products is also on the rise, thanks to the growing online pharmaceutical business. Air freight carriers see these challenges as opportunities, responding with increased investments to improve both the quality and visibility of transport."
Recipients of the DHL CARE Award, which was first instituted in 2016, offer exceptional service, quality, ground handling and innovative technologies and processes for their shipments. In the end, the differences in top scores were extremely close, underlining the high level of expertise and service quality provided by the laureates. This year's award was presented by Thomas George, CEO DHL Global Forwarding Europe, at a festive ceremony in the course of the 18th Life Science and Healthcare Conference.
As carriers strive to provide best-in-class services in the life sciences and healthcare sector, they increasingly invest in improvements. Good Distribution Practices (GDP) certifications based on the European Union guidelines on how to best handle medicinal products, as well as the Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma) of the International Air Transport Association (IATA) have increased in the last year.
"What stands out even more this year is the fact that the fundamental service levels of our preferred carrier partners have increased universally while the DHL CARE Award winners managed to score higher on data transparency, extreme ambient temperature avoidance and investment in innovation such as real-time shipment monitoring," said David Bang, CEO LifeConEx/Global Head of DHL Temperature Management Solutions.
With Thermonet, DHL's own temperature controlled air freight service for the Life Sciences and Healthcare sector, the Group delivers regulatory compliance and higher visibility throughout its own international network of GDP-certified life sciences stations for air and ocean freight. DHL began seeking certification for these stations by the IATA CEIV Pharma in 2016. Since then, over 30 stations have been CEIV Pharma certified, following successful employee training courses and third-party audits. DHL provides forward-thinking, intelligent healthcare logistics through a broad, holistic range of patient-centric solutions. With focus on connecting, caring, complying and innovating, DHL delivers excellence to the healthcare industry.
Posted at 22:04 パーマリンク
Deutsche Post DHL Group addresses challenges in PeP division and lays new foundation for sustainable growth [Integrator]
Program for Post - eCommerce - Parcel division initiated to improve productivity and indirect costs
Annual operating investment budget of EUR 100 - 150 million to continuously enhance productivity and service quality
PeP EBIT guidance for 2018 lowered to EUR 1.1 billion prior to EUR 500 million one-off charges
Group 2018 EBIT guidance lowered to around EUR 3.2 billion
2020 guidance confirmed
CEO Frank Appel: "We are very confident to reach our 2020 targets"
Deutsche Post DHL Group has today decided on a suite of measures to sustainably secure the further earnings growth in the PeP division. To counteract the decline in profitability in the Post - eCommerce - Parcel (PeP) division, which became evident in the first quarter of 2018, the Group decided on a range of measures to safeguard a positive earnings development in 2019 and 2020. The measures mainly target further improvement in productivity, indirect cost and yield management in the Post and Parcel business.
"We are fully focused on achieving our strategic and financial targets for 2020 and on positioning our business divisions for success in future years. In order to deliver long-term sustainable growth, we are now consciously accepting short-term negative effects on our earnings", said Frank Appel, CEO Deutsche Post DHL Group.
As communicated in the first quarter, the structural shift from Post to Parcel resulted in a number of challenges in 2018. In Parcel Germany, the division sees unchanged structural volume growth, but costs inflated with more FTEs and transport capacities needed in unusually tight labor and transport markets. The challenge for Post is the unchanged structural volume decline with stable stamp prices since January 2016 and a high fixed cost base. Additionally, the structural shift with mail decline and parcel growth is currently not adequately reflected in the overhead cost of the division, and the investment into the further development of operations in PeP Germany has not been sufficient over the last years.
Program to ensure long-term earnings growth of the PeP-division
In order to address these challenges, the Group has initiated a comprehensive program to improve productivity, reduce indirect costs and implement yield initiatives.
Productivity: To increase productivity, the Group will lift PeP operations onto the next S-curve through regular opex investments of EUR 100 - 150 million annually. This will include automation and digitalization, continuous improvement, increased last mile productivity and intelligent network utilization. Ultimately, these operational investments will drive better customer service and higher efficiencies, which will lead to an improvement of EUR 150 - 250 million per annum.
Indirect Cost Reduction: In order to reflect the continuous decline in letter volumes, the Group will sustainably reduce the fixed cost base mainly with an early retirement program focusing on civil servants in overhead areas. This will come with restructuring costs of EUR 500 million in 2018 and will be implemented in 2018 and 2019. The Group expects the program to lead to an annual cost reduction of at least EUR 200 million by 2020.
Yield Management: For regulated products in Post, the Group is awaiting the new regulation from the Federal Network Agency as of January 1, 2019. Price increases for unregulated larger-size shipments as of July 1 have already been announced. In Parcel Germany, the Group will focus on a balance between growth and yield. Even in a competitive market, cost inflation requires price adjustments, which will be implemented on a rolling basis upon contract renewal and signing. The future volume growth for Parcel Germany is expected to be closer to the market development of 5 - 7 percent growth.
The measures will only help in part in 2018; therefore, the PeP-EBIT prior to one-off cost is now expected to come in at around EUR 1.1 billion. This includes additional operating expenses for productivity improvements of around EUR 150 million. In addition, a restructuring charge of EUR 0.5 billion will be recognized in 2018 to implement measures.
Starting in the second quarter of 2018 the activities of the recently founded area of Corporate Incubations will be shown as part of the new line Corporate Functions together with Corporate Center/Other. The full-year result of Corporate Incubations is expected to be EUR -70 million.
Including the above described effects, the management board expects in 2018 an EBIT of around EUR 3.2 billion. The PeP division is likely to contribute at around EUR 0.6 billion to this figure while the DHL divisions are still expected to reach around EUR 3.0 billion. The Corporate Functions result is expected to be at EUR -0.42 billion, including the unchanged projection for Corporate Center/Others of a result of around EUR -0.35 billion.
The above mentioned measures result in a confirmed earnings forecast for 2020: Group EBIT is expected to reach more than EUR 5.0 billion. The PeP division is expected to contribute around EUR 1.7 billion of this and the earnings contribution of the DHL divisions is forecasted to reach around EUR 3.7 billion. Corporate Functions is forecast to reach around EUR -0.35 billion.
The reported Group Free Cash Flow for the full year 2018 - excluding the debt-financed renewal of the Express intercontinental aircraft fleet - is hence expected to exceed a minimum of EUR 1.0 billion.
Posted at 16:12 パーマリンク
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