SUPPLY CHAIN Division
Excerpts from Deutsche Post AG's 2013 Group Annual Report.
Customer-centric outsourcing solutions in two business units
In our SUPPLY CHAIN division, DHL provides warehousing, managed transport and value-added services at every link in the supply chain for customers in a variety of industries. We also offer solutions for corporate information and communications management tailored precisely to the needs of our customers. The division comprises the two business units of Supply Chain and Williams Lea.
Integrated end-to-end offering in contract logistics
In the Supply Chain business unit, we provide logistics solutions along the entire supply chain for customers in a wide variety of sectors. From planning, sourcing, production, storage and distribution to returns and recycling, customers rely on us to ensure a smooth logistics flow.
We offer warehousing, distribution, managed transport and value-added services as well as business process outsourcing, supply chain management and consulting solutions. We secure them competitive advantages by ensuring that our customers’ products and information reach their markets quickly and efficiently. With local insight and global scale, we support customers in more than 60 countries in optimising their complex processes.
Our business mainly provides expert solutions in six focus sectors: Consumer, Retail, Technology, Life Sciences & Healthcare, Automotive and Energy. We manage the supply chains all the way from the source of supply to the end customer. Flexibility, reliability and cost efficiency are the key value drivers of our services, which range from international inbound logistics and warehouse and transport services to packaging and other value-added services.
Customers in the Technology sector require fast, flexible and efficient supply chains. In addition, demand for integrated product and service logistics is increasing. Our portfolio ranges from inbound-to-manufacturing services and warehouse and transport services to integrated packaging solutions, returns management and technical services. For a leading manufacturer of printers and multifunctional systems, we handle the configuration and technical adjustment of the devices in addition to managing and operating the regional distribution centre in the Europe, Middle East and Africa region. The result of this integrated solution was a 26% cost reduction per unit within 18 months.
We are also increasingly providing integrated solutions in the Life Sciences & Healthcare sector, where supply chains and logistics processes are still developing in many parts of the world. Our offering takes account of steadily rising cost pressure whilst meeting the high quality standards of our customers.
The Automotive industry is one of our truly global sectors. Production is shifting increasingly to emerging markets such as China, India and Brazil, in which we already have a strong presence. For our inbound-to-manufacturing, aftermarket logistics and lead logistics provider solutions, the key factor is our ability to offer a high degree of global flexibility and reliability whilst further lowering costs.
In the fast-growing Energy sector, DHL provides integrated logistics solutions from procurement to disposal. Our maintenance, repair and operation services offer streamlined supply chain and service solutions that can often substantially reduce costs whilst significantly increasing maintenance productivity.
A variety of outsourcing solutions for companies
Williams Lea provides services in two areas: marketing solutions and business process outsourcing. Document management, marketing and customer correspondence are amongst the solutions supplied, which we offer to customers in the financial services, retail, consumer goods, pharmaceutical, publishing, public and legal sectors.
Global market leader in contract logistics
DHL remains the global market leader in contract logistics, with a market share of 8.2% (2012). This market is highly fragmented: the top ten players only account for around 22% of the overall market, the size of which is estimated to be €159 billion. We lead the market in our key regions of North America, Europe and Asia Pacific and also enjoy a very strong position in rapidly growing markets such as Brazil, India, China and Mexico. Thanks to our global expertise and many years of business relationships with multinational corporations, we are confident that we shall be able to expand further in these markets.
Williams Lea is the market leader in outsourcing document management and marketing production. This market is also highly fragmented and consists largely of specialists offering either a very limited set of services or occupying exclusive niches. Due to our broad range of international services and long-lasting customer relationships, we again succeeded in building on our leading position during the year under review. Thanks to DHL’s good customer relationships, Williams Lea was able to gain additional new business.