DHL study reveals winning logistics strategies for the last mile

Rise in urban consumers in developed and emerging markets is challenging retailers and logistics partners to deliver even more speed and convenience
Companies that can improve performance in the areas of flexible transport networks, automation and data will be better positioned to compete

Increasing urbanization is making the last mile of delivery more complex and critical for the success of e-commerce companies, according to new research by DHL and market research company Euromonitor. With over 600 million more people forecast to live in urban environments by 2030 and new technologies creating opportunities for both service enhancement and disruption, online retailers and their logistics partners are being challenged to embrace bold new approaches in order to survive and compete. In the white paper, Shortening the Last Mile: Winning Logistics Strategies in the Race to the Urban Consumer, DHL and Euromonitor have identified the four main trends that are shaping urban last mile transportation - localized delivery, flexi-delivery networks, seasonal logistics and evolving technologies - and ways in which companies can adapt their supply chains to the changing market environment and achieve competitive advantage.

"The last mile is increasingly becoming the key battleground in the e-commerce supply chain, and companies will have to develop targeted strategies in this area to compete effectively," said Katja Busch, Chief Commercial Officer, DHL. "It's not just about transportation, but about companies' overall approach to managing inventory - getting the right items to the right place at the right time. DHL is developing focused solutions to help e-commerce companies reach their end customers quickly and efficiently, from using machine learning to better route shipments within cities to adding more automation to our delivery networks."

The white paper found that the major urban trends all create various challenges in terms of cost, service impact and organizational strain. For example, the growth of seasonal logistics as a result of increasingly popular holidays and promotional days such as Asia's Singles' Day or national Cyber Days, places significant pressure on logistics companies to build up additional capacity and hire resources to cope with short-term volume surges, which can in turn be difficult to predict. Urban customers' demands for speed and convenience are forcing retailers to overhaul their warehousing networks, replacing centralized networks with local fulfilment and distribution infrastructure, which can require more accurate balancing of inventory. Evolving technologies are creating opportunities for new disruptive challengers to enter the market, while also requiring incumbents to invest prudently and incorporate new skills into their workforce. To overcome these challenges, DHL and Euromonitor have jointly identified the F.A.D. (Flexible transport networks, Automation and Data) model as a framework that will help retailers and logistics operators to ensure their competitiveness over the last mile. By improving their performance in increasing automation, managing data and building flexibility into their networks, e-commerce companies in all markets will be able to better manage inventory and increase the efficiency of their last-mile delivery networks.

"The future evolution of this fast-moving, highly competitive e-commerce market is still incredibly difficult to predict, so companies need to remain nimble and efficient while ensuring they are meeting customer demands," said Lee Spratt, CEO, DHL eCommerce Americas. "The last mile requires considerable attention because, however the market evolves, it will continue to be one of the main touchpoints in the customer experience. Those companies that can build effective partnerships to make their urban delivery networks more elastic, invest in the most effective technologies to boost productivity, take advantage of data to build better customer experiences and, most importantly, manage their inventory as efficiently as possible will emerge as winners in the dynamic e-commerce marketplace of tomorrow."

DHL Supply Chain Invests $300M to Accelerate Integration of Emerging Technologies Into North American Facilities

DHL Supply Chain, the Americas leader in contract logistics and part of Deutsche Post DHL Group, today 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 utilization - of these technologies is expected to help the diverse customer base including those addressing e-commerce and omnichannel challenges to minimize complexity, remove capacity constraints, and maximize service to their customers. 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 digitalization strategy.

DHL Supply Chain North America CEO Scott Sureddin said, "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."

According to a recent DHL report, the exponential growth of e-commerce and its implications on service was identified by 65 percent of responding companies as having a significant impact on their supply chain. Executives are turning to technology in support of faster delivery times to efficiently manage fluctuating demand. In alignment with this trend, DHL is already leveraging emerging technologies at approximately 85 of its 430 North American facilities.

"While many technologies are already in active deployment, collaborative piece-picking robots, artificial intelligence applications and self-driving vehicles stand to have the most promise today," added Sureddin. The potential impact on customers' businesses, which in some deployments have produced productivity gains upwards of 25% and throughput capacity gains of 30%, are two of the main drivers for accelerated investment in the coming years. DHL's experience with these technologies stands to minimize infrastructure costs and maximize service levels.

Another motivation is based on the workforce itself, which is widely regarded as one of the most significant challenges facing the logistics industry. Technology is one of the many levers DHL is utilizing to attract and retain its team.

Tim Sprosty, Senior Vice President of Human Resources at DHL Supply Chain, said, "These technologies enhance the value of our people; they don't replace them. Our team will be equipped with the most advanced technologies, trained on emerging ones and retained through a culture of innovation, collaboration and recognition. We believe this approach is a winning strategy not just for our business but for our customers' businesses as well."

Earlier this year, DHL broke ground on its Americas Innovation Center that will exhibit the technologies and innovations the business is already implementing across the region. The facility is intended to foster the development of future logistics and supply chain solutions while serving as a regional platform for collaborative innovation. The 24,000-square-foot innovation center, which is located just outside Chicago, is scheduled to open next year.

Deutsche Post DHL Group offers future perspectives for more than 2,000 young people

Offer in 2019 increases to 21 different apprenticeships and 18 integrated degree programs
Completely new apprenticeship offer E-Commerce as well as a Business Informatics - Data Science integrated degree program

With around 520,000 employees, 220,000 of whom in Germany, Deutsche Post DHL Group is one of the largest national and international employers. The company offers 21 different apprenticeships and 18 integrated degree programs in a variety of careers, including mechatronics technician, IT specialist, multiple administrative and business management professions, professional drivers and warehouse clerks. More than 2,000 apprenticeships will be offered for the 2019 training year. Deutsche Post DHL Group is the largest provider of vocational training in our sector: a completely new addition to DPDHL Group's range of apprenticeships this year is the integrated degree program in Business Informatics - Data Science and the e-commerce apprenticeship. The apprenticeship is part of a new occupational profile that includes both commercial basics as well as analytical and marketing focus points. The apprenticeship prepares people specifically for an activity in the growing e-commerce industry. For example, product analysis and selection for an online shop, storage of goods, market analyses, book-keeping and marketing strategies such as online advertising are taught. The training period is three years and concludes with a qualification from the Industrie- und Handelskammer (IHK - German chamber of commerce).

Deutsche Post DHL Group is an attractive training company for applicants. "Deutsche Post DHL Group offers a broad spectrum of training. It is very important for us to be able to offer as many young people as possible future prospects," says Thomas Ogilvie, Board Member for Human Resources and Labor Director at Deutsche Post DHL Group.

Around 36,000 young people applied for a training position with Deutsche Post DHL Group in the 2018 training year. The application process is already starting again for 2019. The offers are generally close to home, whether in cities such as Frankfurt, Hamburg and Munich or in rural regions.

The digital freight platform Saloodo! is expanding into the Netherlands

Saloodo! digitalizes the entire supply chain
Digital freight platform fully accessible in Dutch
Market price available in real time through machine learning

The digital freight platform Saloodo! continues to grow - and is now also accessible from the Netherlands. This step means greater convenience and efficiency for all parties involved in shipments in the Netherlands in terms of posting shipment requests on the digital freight platform or carriers finding shipping orders.

Up to now, Saloodo! customers have been able to use the digital freight platform to handle the shipment of their items within Germany as well as from Germany to Europe and from Europe to Germany. As of now, the digital freight marketplace is also available to users in the Netherlands for national shipments and for shipping orders from the Netherlands to other European countries and vice versa.

The digital freight platform Saloodo! is a pioneer in the area of digitalization in the transport and logistics industry. Saloodo! customers benefit from the end-to-end digital handling of their shipments, without lengthy price negotiations on the telephone and conclusion of contracts via fax. It's a concept that's going down well: More than 10,000 shippers and over 6,000 freight forwarders with around 250,000 available trucks are already working with Saloodo!.

Digital platform reduces costs and increases efficiency

Saloodo! is an online freight exchange and digital freight forwarder in one. The benefit to shippers looking to transport their cargo is that the digital freight platform provides all the freedom of an independent marketplace combined with the reliability and convenience of a digital freight forwarder. But irrespective of which transport service provider they choose for their shipment, shippers and carriers only ever have one, central contract partner and point of contact to deal with - Saloodo!. It also means that from booking through to payment, all the documents and information remain accessible in real time on the one platform. All of which makes Saloodo! an optimal end-to-end solution for the entire shipping process.

More than just a freight exchange

Saloodo! also provides carriers with innovative functions that make their daily business routine easier and more efficient . The dynamic transport pricing calculator, which is based on real-time data and specially developed algorithms, helps carriers make their shipping offers more competitive.

Drivers are notified immediately, via the innovative Saloodo! driver app - also available in Dutch - of which order they will be handling. All the necessary information regarding pending delivery runs is sent directly to their smartphone. Proof of delivery, invoices and any damage during on- and off-loading can also be documented directly in the app. Saloodo! enables the entire shipment handling process to be digitally displayed and managed, including freight document administration, billing and payment. Since Saloodo! is the contract partner and the point of contact, carriers benefit from short payment terms with invoices being paid within just 14 days.

So there are many good reasons to experience the future of the transport business with Saloodo!.

DHL Freight launches Europe-wide driver recruitment initiative

Pilot project at five German branches
Up to 500 new drivers to be hired after successful piloting

DHL Freight, one of Europe's leading providers of road transport services, is launching a driver recruitment initiative to counter the shortage of drivers in the logistics sector. To this end, the company is launching a pilot project at five locations that provide long-term career prospects, modified job profiles offering more varied work, and ultimately make it easier to absorb peaks at busy times. As part of the initiative, approx. 30 new jobs were initially created at the German DHL Freight branches in Maintal, Malsfeld, Koblenz, Sehlem and Erfurt in the spring of 2018. The new employees take on driving duties to complement existing transport capacities and, if necessary, also take on other tasks at the branches. Particularly during the peak season, they will be out on the road covering the first-mile and last-mile legs of deliveries for their particular branches. If the concept proves successful, DHL Freight would like to create up to 500 new jobs in Europe.

Uwe Brinks, CEO DHL Freight, explains, "Our industry is currently being driven by an ever-increasing demand for transport, not least because of the continued strong growth in e-commerce. While we have sufficient loading capacity, we are noticing an increasingly urgent shortage of drivers. We have now adopted a far-sighted approach to addressing this problem with our driver recruitment initiative, which is aimed at ensuring that we can continue to provide our customers with the certainty and service they have come to expect from us."

As part of the initiative, new trucks with a load capacity of 12t will also be ordered, in order to provide drivers with state-of-the-art equipment and ensure sufficient transport capacity even in peak season.

CEO Uwe Brinks clarifies, "At peak times, such as before Christmas, we record particularly high volumes of items. The aim of the initiative is to expand our human resources and physical capacity in order to efficiently absorb these volume increases."

In addition to well-known safety technology, the new vehicles will be equipped with a turning assistant. As part of the GoGreen environmental program, solar mats developed by the Group's own start-up TRAILAR will also be fitted to the roofs of the vehicles. They will power a range of on-board systems such as liftgates, thus helping to reduce fuel consumption by up to 5%. In the medium term, Deutsche Post DHL Group aims to improve CO2 efficiency by 50% by 2025, as compared to 2007. The aim is to reduce emissions of local air pollutants by making 70% of deliveries using clean delivery and pick-up concepts.

The initiative provides for a rotating deployment, whereby the new employees will not be continuously deployed as drivers. During peak periods, they will absorb capacity bottlenecks on the roads. During quieter periods, they will be employed in the transhipment warehouse. New drivers will be remunerated on the basis of current collective agreements.

Deutsche Post DHL Group's Disaster Response Team processes nearly 3,500 tonnes of cargo to ensure quick aid to Sulawesi survivors

Facilitated discussion and collaboration alongside the UN between local authorities, NGOs, and national military forces
Fostered relations with the international aid community over 23 days across two airports

The Disaster Response Team (DRT) of Deutsche Post DHL (DPDHL) Group, the world's leading mail and logistics services provider, saw 26 DHL volunteers provide logistics support during relief efforts in Indonesia upon the request of the government through BNPB (Indonesian National Board for Disaster Management) and the ASEAN Coordinating Centre for Humanitarian Assistance on Disaster Management (AHA Centre). The volunteers together with members of the UN facilitated logistics planning and operations across non-governmental organizations (NGOs), airport authorities and military organizations during its latest DRT deployment, a first for the team. During the course of this deployment, the DRT facilitated the smooth processing and efficient flow of nearly 3,500 tonnes of relief goods.

Over the course of 23 days, the volunteers worked tirelessly over three teams during week-long rotations to support international efforts in response to the disaster in Palu, Sulawesi. As international aid poured in, the DRT coordinated efforts from public and private organizations across borders to ensure a smooth flow of aid for the quake survivors, while fostering civil military relations. The deployment concluded last week when the Indonesian National Board for Disaster Management (BNPB) shifted its focus from relief to recovery efforts.

On the ground, volunteers were split between operating on the runway of Mutiara SIS Al-Jufrie airport in Palu, ground zero of the earthquake and tsunami which took place on September 28, 2018, and at the Sultan Aji Muhammad Sulaiman Airport in Balikpapan, which served as a staging airport for incoming aid. While the team in Palu were tasked with helping to manage incoming aid for further distribution to the survivors, volunteers in Balikpapan were responsible for coordinating the supply chain of aid transportation to Palu.

"Our company purpose is to connect people and improve their lives", said Frank Appel, CEO Deutsche Post DHL Group. "Our DRT team comprises highly trained volunteers who provide logistical expertise to help coordinate the relief aid for further distribution to the victims in the speediest manner possible."

Carl Schelfhaut, GoHelp Manager, Asia Pacific, DPDHL Group said, "This deployment was unlike others as the DRT took on the unique role of managing the transportation of aid. As incoming relief goods needed to be ferried from Balikpapan to Palu, and emptied-out pallets in Palu needed to be returned to their respective organizations in Balikpapan, there was a need for a central coordinator for this process. This would ensure the right aid would get to Palu at the right time for onward distribution to those most in need."

He continued, "The DRT would organize daily briefings with non-governmental organizations and national military forces to match available aid and returning pallets with the relevant aircraft. The team also had to confirm the corresponding flight itineraries with airport authorities. We are proud to have been entrusted with such important responsibilities and we are most heartened by the relief we bring to the quake survivors."

Agustina Tnunay (Rina), the Humanitarian Logistics Specialist of the ASEAN Coordinating Centre for Humanitarian Assistance on disaster management (AHA Centre), added, "The Centre works closely with government and non-governmental organizations in the area of disaster management and emergency response. During past emergency responses, the DRT's expertise in removing bottlenecks at airports upon the sudden influx of relief supplies was highly valued. This latest deployment has shown that the DRT is also well placed to support civil military relations in response to natural disasters."

DPDHL Group's DRT was in Indonesia between October 4 and 26, 2018 at the request of the BNPB and the AHA Centre. This particular deployment was one of its longest in the region to date, similar to the team's 2015 involvement in the Nepal disaster response efforts.

About the Disaster Response Team

The DRTs are part of DPDHL Group's GoHelp disaster management program, which it has operated in partnership with the United Nations (UN) since 2005. Through this partnership, the Group provides the UN and national disaster management agencies with pro bono access to its core logistics expertise, and the logistics skills of more than 500 specially-trained employee volunteers worldwide who can deploy within 72 hours after a natural disaster.

Since the partnership was launched, the DRTs have completed about 40 deployments for different natural disasters in over 20 countries - most recently the team helped the victims of Fuego volcano eruption in Guatemala in June this year.

In addition to the DRT deployments, the Group's Get Airports Ready for Disaster (GARD) initiative - also part of the GoHelp program - trains airport management in risk regions to be better prepared should disaster strike.

Deutsche Post DHL Group and S.F. Holding in RMB 5.5 billion landmark supply chain deal

Through this approximately EUR 700 million deal, Deutsche Post DHL Group and S.F. Holding enter a 10-year strategic partnership to grow supply chain operations in China
Deutsche Post DHL Group's supply chain China business to be incorporated into S.F. Holding, and operate as a co-branded organization

Deutsche Post DHL Group has entered into a landmark deal that will transfer its supply chain operations in China to S.F. Holding, a leading premium logistics service provider in the country. The transaction involves the supply chain business in Mainland China, Hong Kong and Macau, herein after referred to as "China". This has no bearing on Deutsche Post DHL Group's business activities in international express, freight transport and e-commerce logistics solutions in China.

As part of this strategic deal, Deutsche Post DHL Group will receive an upfront payment of RMB 5.5 billion (approximately EUR 700 million) and a revenue-based partnership fee over the next ten years. S.F. Holding will have access to Deutsche Post DHL Group's best-in-class supply chain services, management expertise, transportation and warehousing technology. The co-branded organization will operate under the leadership of Yin Zou, the current CEO, Greater China of DHL Supply Chain, along with his existing management team.

This strategic partnership will allow Deutsche Post DHL Group to continue to participate in the fast-growing Chinese supply chain market, leveraging S.F. Holding's extensive domestic infrastructure, distribution network and broad base of local customers. This will accelerate the expansion of the co-branded organization's customer base. Deutsche Post DHL Group is committed to enhancing the organization's product and services offering by providing the breadth of its global supply chain expertise.

"The joint capabilities of Deutsche Post DHL Group and S.F. Holding will create a unique platform to meet the need for a high quality end-to-end supply chain provider in China. S.F. Holding's local market expertise in China has real advantages for our customers across all industries including technology, healthcare, retail, automotive, and e-commerce. Combined with our global operations standards and network support, the agreement provides a solid foundation to continue exploring further opportunities in China in the coming years," said Frank Appel, CEO Deutsche Post DHL Group.

"S.F. Holding has been actively expanding its business-to-business (B2B) capabilities and pursuing different strategic partnerships to grow S.F. Holding into a truly integrated logistics solutions provider that delivers best-in-class services for our clients. This partnership agreement will strengthen our capability in providing supply chain services to a diverse realm of industries and allow us to bring world-class management expertise into our supply chain business operations, enabling us to further understand and tailor to our customer needs," said Dick Wong, Chairman, S.F. Holding. "This agreement will help us achieve our vision to grow further internationally, partnering with Deutsche Post DHL Group, a world class organization."

DHL research shows 75% of companies believe investment in ground transportation will directly support their company growth

n evolution in the transport sector is being driven by trends such as the rapid growth of e-commerce, the continued urbanization of markets, and technologies such as big data analytics and digitalization
Advanced technologies and service options are changing the way shippers and 3PLs manage their global transport flows
Service expectations, new markets, new ground transportation solutions have all increased as a result

DHL launched its latest research report on ground transportation logistics. The report reveals that the fast-paced evolution underway in the sector is changing the way that shippers think when purchasing a transportation solution. The global survey of transport buyers and operations professionals found that 83% of businesses are willing to pay more for better and value-added services as long as they provide a measureable return on their investment.

"The Logistics Transport Evolution: The Road ahead" is a report by DHL Supply Chain, using data from research by Lieberman Research Worldwide, LLC (LRW) that was commissioned by DHL to identify the factors that are impacting ground transportation logistics and how industry is adapting to the new frontier of solutions available. The report found that across sectors and regions, companies are increasingly viewing ground transportation as being more than a tactical commodity, with 71% now considering it to be a strategic component of their businesses. Companies agree there is a direct correlation between ground transportation and business performance with three quarters (75%) believing investing time and resources in ground transportation will directly help their company sales.

Javier Bilbao, Global Transport Lead & CEO Latin America, DHL Supply Chain said: "Transport is undoubtedly a critical aspect of the global business environment, and these findings indicate that companies across sectors and markets are now recognizing its strategic value. We undertook this study to gain an insight into exactly what companies expect from their transportation service providers, both today and tomorrow. Our research has shown us that customers are increasingly looking for complete solutions with a global reach as they have the capability to solve a wide range of transportation issues and requirements."

Global shifts in the business environment were identified as disrupting the ground transportation landscape. In particular, the exponential growth of e-commerce and its implications on service was identified by 65% of companies as having a significant impact on their supply chain in the next 1-2 years.

Bilbao added: "Echoing the findings of our digitalization research, technology will be central to navigating this new era for ground transportation. The capability of AI and data analytics to manage the order profile and shipping patterns of customers' increasingly complex and demanding operating models while optimizing cost and service, means that they are now viewed as essential services, rather than added benefits."

Although these changing dynamics are being witnessed across regions, variations can also be identified depending on the maturity of the market and the demands placed on shippers from their consumer base. In Latin America, the priority consideration in selecting a ground transportation provider is on time delivery while in Europe, where the market is more mature, optimization of networks is the key focus for shippers.

Broader societal factors were also highlighted as presenting associated challenges, with 61% of companies referencing the increase in urbanization as a factor that will significantly impact their future business. Technology and its ability to help manage this complex environment is increasingly seen as a standard requirement of 3PLs: more than two thirds (67%) of companies believe that big data analytics and artificial intelligence (AI) are services that are essential for 3PLs to offer their shipper customers.


DHL now offers less-than-container load rail service from Europe to Asia

DHL Global Forwarding grows its rail freight capacity in the Belt and Road network
New weekly LCL service between Duisburg and Chengdu to meet increasing demand
Lead time of up to 29 days for LCL shipments door-to-door from Europe to China
Bonn - The demand for rail freight capacity on the "New Silk Road" is continuously increasing, and this land connection is not a one-way street. Rail transport in the reverse direction, from Europe to Asia, is also rapidly growing. Shippers are more frequently exploring the train connections from the West to the East as a reasonable transport alternative. Within this context, DHL Global Forwarding, the air, ocean and rail freight specialist of Deutsche Post DHL Group, has introduced a new less-than-container load (LCL) service from Duisburg, Germany, to Chengdu, China.

The new DHL Railconnect LCL service addresses customers who are mainly shipping general cargo and want to leverage the reliable and fast transport service via rail. With a lead time of up to 29 days door-to-door between the main economic areas, DHL Global Forwarding connects Europe and China faster than by sea and at more reasonable costs than via air freight.

"With the extension of our service by a weekly DHL LCL rail service ex Europe, we are offering our customers a transport solution for LCL shipments from all over Europe to China. This allows also exporters of smaller volumes a reliable and proper planning of their supply chains. What has long been standard for air, sea and road transport is now also available for rail. We are filling an important gap and continue to expand our product portfolio to suit all shipment sizes with planned departure schedules for West- & Eastbound directions," states Thomas Kowitzki, Head of China Rail, Multimodal Europe, DHL Global Forwarding.

Mostly shippers from the Automotive, Manufacturing & Engineering and Chemical sectors are leveraging the capabilities provided by the new Silk Road to ship everything from spare parts, components, and raw materials up to finished goods. However, with the increasing use of the rail services the demand for less-than-container load (LCL) solutions has also increased. This is why DHL Global Forwarding is now offering a fixed scheduled LCL service to China using DHL logistics platforms. The new DHL LCL service enables reliable supply chain planning while helping to meet ad hoc orders or production needs.

Deutsche Post DHL Group focuses PeP division on German Post and Parcel business and creates DHL eCommerce Solutions division to drive global growth sector

Post - eCommerce - Parcel (PeP) to be separated into German and international divisions under dedicated Board of Management leadership
Post - eCommerce - Parcel (PeP) will be renamed as Post & Paket Deutschland, focusing on post and parcel business in Germany
Ken Allen takes over responsibility as CEO and Board Member for new DHL eCommerce Solutions division
John Pearson appointed as new Board Member and CEO for DHL Express

In order to allow for a dedicated focus on the Post and Parcel business in Germany and to leverage the tremendous growth opportunities in the e-commerce sector, the Group has decided to refocus the Post - eCommerce - Parcel (PeP) division on the post and parcel business in Germany. This business will be renamed Post & Paket Deutschland and will remain under the interim leadership of Group CEO Frank Appel. The international parcel and e-commerce businesses - previously DHL Parcel Europe and DHL eCommerce - will be established as a standalone division, DHL eCommerce Solutions, under the leadership of Corporate Board Member Ken Allen.

Having one operating division of the Group fully dedicated to the German post and parcel business will ensure even more stringent execution of the previously announced PeP turnaround plan. This plan includes improved yield management, indirect cost reduction and productivity improvement measures. At the same time, by creating the DHL eCommerce Solutions division, the Group will be better positioned to leverage opportunities within the booming e-commerce logistics sector in Europe and around the world.

The Supervisory Board of Deutsche Post AG today named Ken Allen (63) as the Board member for DHL eCommerce Solutions and extended his contract to the Corporate Board of Management until 2022. Ken Allen's new mandate will include the Parcel Europe and eCommerce businesses which are currently within the existing PeP division. He will keep the responsibility for Customer Solutions & Innovation (CSI), and will lead the further development of the overall e-commerce strategy for the Group.

"Ken Allen has successfully shaped the Express strategy and has led the division on an unparalleled growth trajectory by unlocking its revenue and profit potential. With his relentless focus on the core principles of customer centricity, employee engagement and profitable growth, Ken established truly world-class processes within the Express division, making it the most profitable division of Deutsche Post DHL Group," said Chairman of the Supervisory Board of Deutsche Post DHL Group, Dr. Nikolaus von Bomhard. "I have no doubt that the DHL eCommerce Solutions division will greatly benefit from Ken's ability to deliver exceptional performance and value for DHL customers, using his significant experience in building networks and leading people with an inspirational style."

John Pearson (55) will take over the Board mandate for DHL Express. He joined DHL Express in 1986, and served the company as CEO in Asia Pacific, EEMEA and Europe, as well as leading the global sales, marketing and customer service functions of the DHL Express division as Global Commercial Head. "We are pleased to have John Pearson join our Corporate Board. He has a proven track record, along with a deep understanding of the Express business. Not only does he have extensive operational and business experience of the Express division but John has been a key member of the leadership team running the Express division along with Ken. I'm confident John's experience will prove immediately valuable to the Board, and that he will take DHL Express to new and greater heights in the years to come," said Deutsche Post DHL Group CEO Frank Appel.