The impact of digitalization and status of the supply chain profession are driving a global talent shortage crisis [Integrator]
A survey conducted by DHL found that the supply chain talent pool is not keeping up with the changing requirements as technology reshapes the industry
More than a third of companies have failed to take steps to create their future talent pipeline or develop their workforce
The common impression of supply chain careers as lacking in excitement continues to have a significant impact in finding, attracting and retaining talent
DHL called upon industry leaders to recognize the growing talent gap crisis in the supply chain sector. The U.S. Bureau of Labor Statistics reports that jobs in logistics are estimated to grow by 26 percent between 2010 and 2020. Furthermore, one global study estimated that demand for supply chain professionals exceeds supply by a ratio of 6:1, with some predicting that ratio could be as drastic as 9:1.
DHL surveyed more than 350 supply chain and operations professionals in five global regions. The findings revealed that there are a number of reasons contributing to the talent shortage crisis in a rapidly evolving field. The report 'The Supply Chain Talent Shortage: From Gap to Crisis' was commissioned by DHL and authored by Lisa Harrington, president of the lharrington group LLC. The report highlights the key supply chain talent challenges experienced today, and identifies opportunities for businesses to compete on a global stage.
Harrington said, "Leading companies understand that their supply chains - and the people who run them - are essential to their ability to grow profitably. However, the task of finding people with the right skillsets required to run these highly complex operations is increasingly difficult - especially at the middle- and upper management levels. Unless companies solve this problem, it could threaten their very ability to compete on the global stage."
The survey revealed the top factors driving the talent shortage:
Changing skill requirements: Today, the ideal employee has both tactical/operational expertise and professional competencies such as analytical skills. 58 percent of companies say this combination is hard to find. But tomorrow's talent must also excel at leadership, strategic thinking, innovation, and high-level analytic and technological capabilities.
Aging workforce: As much as a third of the current workforce is at or beyond the retirement age.
Lack of development: One third of companies surveyed have taken no steps to create or feed their future talent pipeline.
Perception that supply chain jobs lack excitement: The industry is still contending with the impression that other fields are more prestigious and offer more opportunities, fuelling lack of interest in the industry within the world's future workforce.
Harrington continues, "Companies are now recognizing that sourcing strategy has a large impact on their bottom line and ability to remain competitive. As one study recently found, companies that excel in talent management increased their revenues 2.2 times as fast and their profits 1.5 times as fast compared to 'talent laggards.' That's a powerful advantage. Unfortunately, recruiting the right talent - especially at the critical mid-level and senior management levels - is proving very difficult in today's environment. New technologies and fundamental areas of the supply chain have changed, meaning they now require that a person has a different and much larger skillset than required when most of the current workforce began their careers."
The report outlines numerous opportunities for the industry to start closing this talent gap. Offering clearer career paths and a visible commitment to the professional development of its supply chain staff combined with competitive remuneration packages are just a few ways to develop and retain their current talent. To attract talent, the industry needs to start emphasizing that the future workforce will need to have skills in robotic management, AI and AV control - job aspects that would be attractive to the younger demographic and help combat the negative perception of the sector.
Louise Gennis, Vice President Talent Management/Acquisition, Learning & Development, DHL Supply Chain, said, "We recommend that companies start with prioritizing the development of their current talent pool to adapt to the changing job requirements through training programs, and then retaining staff through clear career paths. We strive to combat misconceptions surrounding working in the supply chain through highlighting the technological developments which are digitalizing the industry and that are attractive to younger demographics."
Gennis cites the success of DHL's diverse recruitment and development initiatives as evidence that a long-term, well-informed talent management strategy can help businesses mitigate the potentially devastating effects of a shrinking talent pool. "The supply chain talent shortage is now critical enough that it's on the minds of supply chain managers across all industries, but the gap didn't develop overnight. Since supply chain solutions are our business, we've seen the issue developing over many years - and have used this time to adjust our approach toward attracting, developing and retaining talent accordingly. Our unique expertise helps ensure that job openings are filled by qualified experts wherever we and our customers operate, which will become an increasingly critical success factor as talent resources grow scarcer."
Posted at 17:58 パーマリンク
TNT Express Operations Disrupted, All Other FedEx Services Operating Normally [Integrator]
edEx Corp. announced that the worldwide operations of its TNT Express subsidiary have been significantly affected due to the infiltration of an information system virus. While TNT Express operations and communications systems have been disrupted, no data breach is known to have occurred. The operations of all other FedEx companies are unaffected and services are being provided under normal terms and conditions.
Remediation steps and contingency plans are being implemented as quickly as possible. TNT Express domestic country and regional network services are largely operational, but slowed. We are also experiencing delays in TNT Express inter-continental services at this time. We are offering a full range of FedEx Express services as alternatives.
Updates on service availability will be provided periodically as systems are remediated. Customers seeking updated information on service availability should call TNT Express Customer Service or visit TNT Express’s website at tnt.com.
We cannot measure the financial impact of this service disruption at this time, but it could be material.
Posted at 18:28 パーマリンク
The New Landscape of Supply Chain Real Estate - a major shift is underway leading businesses to rethink their strategy [Integrator]
Four key trends are affecting the design of logistics networks
Partnering with an integrated 3PL provides a powerful solution
To download the report please visit: www.dhl.com/real-estate
Companies are re-thinking their go-to-market strategies and, as a result, making different choices about how they locate, design and operate their distribution networks. This has created a new landscape for supply chain real estate, according to a report published today by DHL, the world's leading logistics company, which discusses the new landscape of supply chain real estate. Global and regional supply chains are changing, as they adapt to the new realities of commerce and competition.
The New Landscape of Supply Chain Real Estate is a report by Lisa Harrington, President of the lharrington group LLC, prepared in collaboration with DHL. Harrington is also Senior Research Fellow at the Robert H. Smith School of Business, University of Maryland.
The report states that while a healthier global economy fuels the demand for supply chain real estate, it is not the only driver. Four other forces are at work, and they are having a transformational effect on companies' distribution center (DC) networks. They include:
The e-commerce revolution
Globalization and right-shoring
Mergers and acquisitions
In this landscape of change, the job of managing network real estate is a lot more complex. For this reason, interviewees taking part in this research report, increasingly turn to outside experts for help. These experts come in several forms, including network design consultants, real estate brokers and 3PLs.
"The face of global supply chain networks is changing," says Harrington, author of the DHL report. "Gone are the days of operating a static real estate portfolio and tweaking it every five to seven years. Business is too dynamic and the stakes are too high.
"The fact is," Harrington continues, "the way companies manage their supply chain real estate portfolios has morphed from a tactical/operational concern to a strategic differentiator. Supply chains that operate more nimbly and at lower cost don't just save money. They drive growth."
Kent Waggoner, Vice President of Strategy & Business Development, DHL Real Estate, commented: "Operating a distribution network that delivers strategic growth, while also meeting overall financial objectives, requires robust real estate management capabilities that range from site selection and property development to lease management and facilities operation."
As the companies interviewed for this research indicate, partnering with an integrated 3PL, one that is expert in both operations management and real estate, can provide a seamless and powerful solution.
To download the report please visit: www.dhl.com/real-estate
Posted at 17:49 パーマリンク
New visibility tool: Ocean View provides transparency at high seas [Integrator]
Real-time shipment status for ocean freight improves control of the supply chain
DHL Global Forwarding, the air and ocean freight specialist of Deutsche Post DHL Group recently launched Ocean View, a new online platform that allows shippers to track their ocean freight shipments and therefore improve their end-to-end supply chain planning. Ocean View consolidates information from DHL's Transportation Management System, the ocean carrier and the vessel itself for real-time visibility of the ocean transport. It also provides a forecast on future milestones as well as a notification feature in case of route changes or delays. Also, Ocean View does not need any devices to be installed on the container, which makes it a very simple solution to implement.
"A survey recently conducted by our Global Forwarding team confirmed again that low visibility and transparency is a major issue for customers using door-to-door ocean transport. With Ocean View we created a user-friendly application increasing visibility and thereby improving the control of the overall supply chain for our customers," explains Andreas Boedeker, Global Head of Ocean Freight at DHL Global Forwarding.
Ocean View provides end-to-end near real-time shipment status including hourly updates on the shipment's location at sea. Its user interface gives an iconized overview of all shipments and milestones with the option of viewing detailed shipment milestones during transit and activating a preference based alert function. Additionally the tool is able to forecast the freights' journey enabling proactive solutions and scheduling. This way, changes in arrival times become visible beforehand, which supports the overall planning of end-to-end supply chains and ultimately reduces costs.
Ocean View is a web based application, avoiding any need for local software installation or intensive staff trainings. Further, no additional tracking device needs to be installed on the container. However, if necessary Ocean View can be combined with DHL Ocean Secure, where security devices are fitted to containers that can monitor temperature, humidity, shock or lighting as required. The platform is available to all DHL Global Forwarding customers.
Posted at 17:45 パーマリンク
DHL opens new state-of-the-art Life Sciences facility at Dublin Airport, extending its global end-to-end pharmaceutical supply chain capability [Integrator]
Global logistics provider DHL Supply Chain is today opening a new pharmaceutical grade facility in Ireland. Located at Horizon Logistics Park by Dublin Airport, the site is fully approved by the Health Products Regulatory Authority (HPRA) and represents an important extension of the company's proven global pharmaceutical supply chain capability.
The brand-new, secure facility will allow pharmaceutical companies manufacturing in Ireland to enjoy fully compliant temperature controlled end-to-end supply chain management including: storage, pick & pack and inventory control. Plans are in place to extend the service across the temperature regimes and provide value-added repack and postponement services. The new DHL logistics center is expected to create up to 50 jobs over the coming months.
With 3,700 sq. m. (40,000 sq. ft) of warehousing space, the new facility will provide a superior logistics solution for pharmaceutical companies based in Ireland. Segregated into different temperature regimes, the site offers a range of storage environments including: ambient (15 - 25 degrees); chill (2-8 degrees); and a blast & holding freezer capable of temperatures of -20 degrees.
The new facility makes Ireland the 43rd country in which DHL has established a Life Sciences Center of Excellence, offering full access and integration with DHL's temperature controlled transport services by Road, Air, Ocean and Express. Located close to European markets and well serviced by road, air and sea, nine out of ten of the top global pharmaceutical companies and nine out of the top ten biopharmaceutical companies have already chosen Ireland as their manufacturing base.
Ciaran Foley, MD Ireland DHL Supply Chain, said: "We are very excited to open this site in Dublin dedicated to the Life Sciences sector in Ireland. DHL has already established an excellent Life Sciences customer base and reputation in Ireland through its Air, Ocean, Road and Express divisions and this new site gives customers access to a completely integrated global logistics solution. Our investment in Horizon also gives us the opportunity to provide supply chain services which are fully compliant and managed within strict regulatory controls from start to finish. This is the cornerstone of DHL's offering."
Posted at 17:42 パーマリンク
Differentiated logistics services providing competitive advantages for chemical companies [Integrator]
Chemical companies who provide customers with differentiated logistics service solutions in addition to the products, could be tomorrow's leaders of a global industry expected to be worth EUR 5.6 trillion by 20351, according to a new study by DHL Global Forwarding. The whitepaper Differentiated Logistics Services - commissioned by DHL and developed by Kompetenzgruppe Chemielogistik together with global chemical company Evonik Industries - presents two tools to help chemical companies make the transition to a more customer- and service-centric approach to logistics.
Michael O'Hara, Global Head of Chemicals, DHL Global Forwarding, says "With B-to-B logistics becoming more service oriented and business customers demanding e-commerce-like experiences, competitive advantage is no longer being determined by the product alone but more by the package of logistics services wrapped around the product offering. As this trend grows, responsive logistics solutions become not just 'nice to have' but a deciding differentiating characteristic. Chemical producers who can strategically and quickly change their traditional view and offer differentiated logistics services will create competitive advantages, build customer loyalty and increase their bottom-line. To help chemical companies make this transition in a strategic way, the whitepaper provides two tools to build differentiated business models for the chemical companies of tomorrow."
Developed by Kompetenzgruppe Chemielogistik, an independent team of experts in Chemical Logistics, and Evonik Industries, the two tools - Logistics Service Cube and the Cost-Benefit Scale - are designed to help chemical industry stakeholders make the best decisions whilst exploring a relatively new and untapped territory. The Logistics Service Cube enables a more systematic approach to identifying the right logistics service levels for the product, supply chain type and customer segment. To define effective logistics strategies requires that chemical companies, logistics providers and end-customers need to actively work together.
The Cost-Benefit Scale provides a methodology for action and implementation - a way to "quantify" the impact of differentiated logistics services before deciding which level to pursue. The ability to quantify the impact provides transparency and better risk assessment on such things as revenues, sales prices and logistics costs.
Thomas Nieszner, Global Chemical Sponsor, DHL Global Forwarding, said, "Differentiated logistics services make life easier for the customer and enable chemical companies to add tremendous value - it's a win-win situation. With customized logistics services, chemical companies can deliver the right products in the right amounts to customers, at the right place and at the right time - every time."
Benefits of differentiated logistics services
For chemical companies, the benefits of differentiated logistics services include delivering the right quantities on time; ability to cover demand fluctuations in cyclical customer businesses without time delay; reasonable logistics costs and predictability and reliability of deliveries.
As a relatively new area of opportunity for chemical companies, 'first movers' can establish a real competitive advantage, especially when it comes to customer loyalty. More importantly, with the projected sector growth and the broader shift towards a service-orientated approach in B2B, this is a development that chemical companies cannot afford to ignore.
Angelos Orfanos, Global Head of Marketing & Sales, DHL Global Forwarding, said: "The immediate challenge facing chemical companies is finding the right strategy to meet the changes in demand and choosing the appropriate service differentiation. This requires high-level collaboration from top management to production, supply chain to marketing and sales. The tools outlined in our new whitepaper will help management move forward in what is a very complex scenario."
DHL's whitepaper Differentiated Logistics Services is a continuation to DHL's Supply Chain In The Boardroom: 5 Levers to Boost a Chemical Company's Bottom Line (2015) which identified differentiated logistics services as one of the profit levers. In the new whitepaper, Kompetenzgruppe Chemielogistik together with Evonik Industries took a deeper look at how differentiated logistics services can create added value, the challenge to traditional logistics strategies and how to create new business models.
Posted at 17:40 パーマリンク
Wärtsilä and DHL deploy cutting-edge mobile robots from Fetch Robotics to streamline warehouse operations [Integrator]
The technology group Wärtsilä and DHL have completed a successful pilot, where the companies tested mobile robots of Fetch Robotics. The pilot was carried out in Wärtsilä's central distribution centre in Kampen, the Netherlands, where the entire logistics chain of Wärtsilä's spare parts, from order intake to customer delivery, is managed. As Wärtsilä's partner, DHL runs the warehouse operations.
The aim of the project was to investigate possibilities to utilize the latest technology innovations in the daily operations of the warehouse. Wärtsilä and DHL also wanted to gain more understanding of the added value of robotics in a warehouse environment and to learn about the human-technology interface between robots and employees.
The mobile robot system simplifies point to point material handling. Workflows at Wärtsilä's warehouse can be set up and modified very quickly to accommodate today's dynamic environments, without the need for complex programming. Workers can interact with the robots via touchscreen and send them on their journeys with a push of a button.
"Our colleagues took center stage during the trial. The robots are designed to work alongside employees and to relieve them from physically strenuous tasks. The robots alone took over a walking distance of more than 30 kilometers per day, thereby increasing productivity and safety within the warehouse working environment," says Denis Niezgoda, Robotics Accelerator Lead, DHL Customer Solutions & Innovation.
The autonomous mobile robots have a loading capacity of 78 kilograms and can cover a distance of two meters per second. When the battery life of maximum nine hours comes to an end, the freight robot independently makes its way to the charging unit. The intelligent robots recognize their location and surroundings, and can differentiate between dynamic and static obstacles, thus enabling evasive action to work safely with and around people.
Wärtsilä and partners to develop potential of mobile robots further
This new generation of smart mobile robots can impact the logistics industry through enhancing people's capabilities. They enable people to perform tasks faster and save energy, thus improving efficiency.
"Our relationship with DHL is a great accomplishment. We were able to deploy our robots in the facility in a matter of days, rapidly improve on-site productivity, while increasing the safety of the warehouse employees," explains Melonee Wise, CEO at Fetch Robotics.
"The pilot was a success and, as a result, we have decided to continue exploring and developing new applications of smart mobile robot technology. Over the coming months, we will continue to trial different robot types and technologies together with our partners to further improve productivity, quality and safety in our operations," says Anne Träskbäck, General Manager, Parts Delivery at Wärtsilä Services. "We have exciting times ahead. Working with robots means embracing a new change, and co-operating in new, productive ways in the future."
Posted at 17:37 パーマリンク
Cathay Pacific selects DHL Supply Chain to manage and handle aircraft service parts logistics for its mainline fleet in Hong Kong [Integrator]
10-year contract will see DHL Supply Chain manage storage, warehousing and domestic transportation of aircraft service parts for Cathay Pacific and Cathay Dragon's aircraft maintenance operations at Hong Kong International Airport
120 DHL personnel will provide 24-hour handling and support relating to 80,000 specific part numbers of critical aviation parts, components and equipment
DHL Supply Chain has commenced management of all aircraft maintenance, repair and overhaul logistics activities for Cathay Pacific and Cathay Dragon in the airlines’ home base at Hong Kong International Airport (HKIA), part of a 10-year contract signed earlier this year.
The contract will see DHL Supply Chain take overall responsibility for the storage, warehousing and domestic transportation of 80,000 specific aviation part types, components and equipment used to maintain Cathay Pacific and Cathay Dragon’s combined fleet of 180 aircraft to the highest safety and operational standards. DHL Supply Chain will also work with incumbent aircraft maintenance provider HAECO to provide additional services including parts inspection and airside operations.
Cathay Pacific Director, Engineering, Neil Glenn, said: "Operational efficiency and quality are imperative to Cathay Pacific. Aircraft maintenance and repairs require constant precision and care, which is supported by the efficient storage, handling and on-demand provisioning of vast numbers of spare parts."
"As such, we are delighted to have engaged DHL Supply Chain as our logistics partner. DHL has an excellent reputation and is tasked to perform safe and efficient supply chain management and handling in extremely complex environments, which adheres to Cathay Pacific’s rigorous compliance requirements and operational standards."
"The arrangement that we now have in place allows all three parties to concentrate on their specific core capabilities, namely: airline management (Cathay Pacific), aircraft maintenance (HAECO) and now, DHL will be responsible for the maintenance, repair and overhaul (MRO) supply chain management," added Mr. Glenn.
A core team of 120 trained DHL Supply Chain specialists operate on a 24x7x365 basis, managing more than 90,000 sq.ft. of warehousing space, processing one million unit of spares transaction per annum, round-the-clock transport delivery, and reporting and governance procedures. Operations commenced after approval was obtained from the Hong Kong Civil Aviation Department and nearly four months of intensive onboarding and training involving DHL Supply Chain, Cathay Pacific and HAECO.
DHL Supply Chain will begin introducing process improvements and implement new supply chain systems within the initial phase of the contract.
"DHL Supply Chain has invested heavily in building up its capabilities to service the aviation industry’s exacting safety and compliance needs. With Hong Kong taking the lead, we are looking at extending this capability in the Greater China region, particularly mainland China and Taiwan," said Yin Zou, CEO, DHL Supply Chain Greater China. "This new contract is a significant addition to our aviation maintenance, repair, and overhaul capability and contracts for DHL Supply Chain and will only encourage us to deepen our commitment to airlines looking to streamline and strengthen the logistics processes that keep their fleets and returns aloft."
"This new deal makes Cathay Pacific both the top customer for DHL Supply Chain in Hong Kong, as well as a global pioneer in adopting third-party logistics for aviation maintenance, repair and overhaul," said Jez McQueen, Managing Director, DHL Supply Chain Hong Kong and Macau. "We are extremely honored that one of the world’s most respected airlines has turned to us to manage this critical part of the supply chain that ensures the safety of thousands of lives every day. The airline and MRO world is rapidly changing, which means that the supply chain now has a very important role to help organizations meet both their customer promises as well as the financial returns that investors require."
Posted at 17:35 パーマリンク
Deutsche Post DHL Group remains on course for growth [Integrator]
Group revenue up EUR 1 billion to EUR 14.9 billion
Operating profit improves to EUR 885 million
EBIT forecast for full year 2017 confirmed: Earnings expected to increase to approximately EUR 3.75 billion
CEO Frank Appel: "We are seeing positive results at the half-time mark of our Strategy 2020"
Deutsche Post DHL Group increased revenue significantly in the first quarter of 2017 and posted a further improvement in operating profit. Group revenue climbed by more than EUR 1 billion to EUR 14.9 billion. All four divisions contributed to the strong growth. Volumes and revenue saw substantial growth in particular in the German and international Parcel and eCommerce businesses as well as the global Express business. With Group EBIT of EUR 885 million, Deutsche Post DHL Group surpassed the good prior-year result and registered the strongest first quarter in the company's history1.
"Following a record year in 2016, the upward trend has continued at Deutsche Post DHL Group this year. We reported growth in all four divisions in the first quarter: Our strategy is working, and we are confident that we will achieve our targets for 2017," said Frank Appel, CEO, Deutsche Post DHL Group.
Strategy 2020: Positive half-time assessment
Deutsche Post DHL Group is seeing good results at the half-time mark for its Strategy 2020, which the company introduced in 2014. Key milestones have already been reached. All four divisions have been positioned to leverage growth opportunities, particularly in the e-commerce sector. The company has successfully expanded its Parcel business into international markets, and has also introduced new solutions in its Express business to continue capitalizing on the booming online commerce sector. The Global Forwarding, Freight and Supply Chain divisions are more streamlined and efficient today and therefore positioned for sustainable growth.
"Our team has managed the first half of Strategy 2020 very successfully. Our strategic measures are already clearly paying off. At the same time, we continue to work hard to expand our global market leadership. We are developing trend-setting innovations, moving into new fields of business and leveraging the opportunities presented by digitalization. Our company is already ideally positioned to achieve its strategic and financial targets for 2020," said Frank Appel.
Outlook: Earnings targets confirmed for 2017 and beyond
Deutsche Post DHL Group expects the global economy to grow moderately in 2017. After a good first quarter, the Group has maintained its forecast of increasing EBIT to around EUR 3.75 billion. Additionally, Deutsche Post DHL Group continues to forecast that operating profit will increase by an average of more than 8% annually (CAGR) during the period from 2013 to 2020.
First quarter of 2017: Growth in all four divisions
Group revenue grew significantly by 7.3% to EUR 14.9 billion in the first three months of the year. The company's operating profit increased by 1.4% to EUR 885 million in the first quarter. Adjusted for the non-recurring positive effect posted by Supply Chain in 2016, the increase in EBIT was 6.0%. The improvement in the Group's profitability was driven largely by Express, with a significant double-digit growth in operating profit.
Consolidated net profit after non-controlling interests was slightly below the prior-year level at EUR 633 million (2016: EUR 639 million), due to a higher tax rate. Basic earnings per share decreased correspondingly, edging down from EUR 0.53 in the previous year to EUR 0.52 in 2017.
Capital expenditure: Foundation for growth further strengthened
Deutsche Post DHL Group invested EUR 334 million in the first quarter of 2017 (2016: EUR 411 million). Investments continued to focus on positioning the Group for future profitable growth in all four divisions. For example, the Group made further progress in extending its domestic and international parcel infrastructure and invested in the production of its StreetScooter electric vehicle, in addition to expanding global and regional hubs in the Express division and modernizing and expanding the aircraft fleet.
Substantial year-on-year increase in cash flow
The Group saw free cash flow of EUR -430 million in the first quarter (2016: EUR -700 million). This substantial increase was mainly the result of improved working capital management. The significant cash outflow in the first quarter reflects the usual seasonal trend for Deutsche Post DHL Group. The company's cash flow is regularly impacted at the beginning of each year by the annual prepayment made to the Federal Post and Telecommunications Agency for civil servant pensions. The contribution for 2017 was EUR 493 million.
Post - eCommerce - Parcel: German and International Parcel business continues to grow
Revenue in the Post - eCommerce - Parcel (PeP) division increased by 6.4% to EUR 4.5 billion in the first quarter. This positive development was attributable in the main part to growth in volumes and revenue in the eCommerce - Parcel business unit, which increased revenue by 17.5% to EUR 2.0 billion. The increase was based on revenue gains of 6.1% for Parcel Germany, 70.3% for Parcel Europe and 13.7% for eCommerce. A key positive factor behind the strong increase in revenue at Parcel Europe was the inclusion of the UK Mail business in the unit's consolidated results after successful completion of the acquisition of the British company in December. In the first quarter, UK Mail had revenue of EUR 139 million. The integration of UK Mail shows that PeP is making good progress in the expansion of its 'United Parcel Nations of Europe'. At the beginning of the year, the division also extended its European network to include Spain and Portugal. In the international eCommerce business, the domestic U.S. and the cross-border Asian businesses, in particular, are growing dynamically. The positive development in the eCommerce - Parcel business unit shows once again how Deutsche Post DHL Group continues to benefit from its successful positioning as market and innovation leader in the high-growth e-commerce segment.
In the Post business unit, revenue saw a slight decrease of 1.2% to EUR 2.5 billion due to structural volume declines mainly in the area of Mail Communication.
EBIT in the PeP division improved to EUR 425 million in the first quarter (2016: EUR 414 million).
Express: Success story continues
In the first quarter, the Express division again continued the very good revenue and earnings development seen over several years, with both indicators registering double-digit increases. Revenue rose by 13.0% to EUR 3.6 billion. This dynamic performance was once again driven by solid growth in the international time-definite (TDI) delivery business, where daily volumes rose by 8.0% in the first quarter year-on-year, supported by successful yield management.
The division's EBIT increased by 11.5% to EUR 396 million. This very strong performance was attributable to further network enhancements, rapid international growth and pricing initiatives. The operating margin stood at 11.0% in the first quarter.
Global Forwarding, Freight: Revenue growth in air and ocean freight
Revenue in the Global Forwarding, Freight division climbed by 6.6% to EUR 3.5 billion in the first quarter of 2017. In line with the positive market trend, the division registered significant growth in revenue and volumes in both the air freight and ocean freight businesses.
However, the price situation remains challenging overall. Although market freight rates increased significantly in the first quarter, it was not possible to pass on the higher buying rates in full to end customers in the short term. The division's gross profit margin declined as a result, while operating profit decreased from EUR 51 million to EUR 40 million.
Supply Chain: Positive operating performance in all regions
Revenue in the Supply Chain division increased by 3.8% to EUR 3.5 billion in the first quarter. The higher revenue was based on dynamic business development in all regions. Supply Chain continued to generate additional new business. In the first quarter, the division concluded additional contracts worth EUR 192 million with both new and existing customers.
Operating profit decreased to EUR 99 million (2016: EUR 127 million). Adjusted for the net one-off effect of EUR 38 million recorded in 2016, EBIT for the first quarter of 2017 increased by 11.2%.
Posted at 21:54 パーマリンク
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