Deutsche Post DHL Group and SF Holding conclude landmark supply chain deal

RMB 5.5 billion (~ EUR 700 million) transaction saw DPDHL Group and SF Holding enter a 10-year strategic partnership to grow supply chain operations in China
Yin Zou named CEO of the co-branded business to accelerate expansion of customer base

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

As part of this transaction, DPDHL Group received RMB 5.5 billion (~ EUR 700 million), and will continue to receive revenue-based partnership fees for 10 years while DPDHL Group provides the co-branded business with trademark license, customer referral, employee training, best practice sharing and other areas of support. The co-branded business - SF DHL Supply Chain China - was announced at the deal closing, and Yin Zou (former CEO, Greater China of DHL Supply Chain) was appointed CEO of the organization, and along with his existing management team, will continue leading the business. Headquartered in Shanghai, SF DHL Supply Chain China will harness DPDHL Group's best-in-class supply chain services, management expertise, transportation and warehousing technology, combined with SF's extensive domestic infrastructure, distribution network and broad base of local customers, to drive its growth trajectory.

"This supply chain alliance with SF is a strategic milestone for DPDHL Group. With our joint capabilities we will create a unique platform to meet the need for a high quality end-to-end supply chain provider in China. SF's local market expertise combined with DPDHL Group's global operations standards and network support provide a solid foundation for us to continue exploring further opportunities in China in the coming years. China is on course for sustainable growth1, and SF DHL Supply Chain China is well-placed to serve the increasing demands for world-class supply chain services. The agreement, therefore, is the cornerstone for DPDHL Group to gain unprecedented access to China's immense domestic market," said Frank Appel, CEO Deutsche Post DHL Group.

"SF's vision is to become a trustworthy logistics-based business partner with comprehensive solutions for our customers, and our partnership with DPDHL, the leading logistics company in the world, helps us move solidly ahead with this vision. We are expanding our domestic footprint through SF DHL Supply Chain China to cater to our customers across a multitude of industries. This deal with DPDHL Group, a world-class organization, also helps us to better serve multi-national clients," said Dick Wong, Chairman, SF Holding.

SF DHL Supply Chain China will have access to DPDHL Group's global expertise, network, operations standards and innovations, across industries from technology, healthcare, retail and automotive to e-commerce. Leveraging SF's market position in China, SF DHL Supply Chain China is setting its sights on expanding the service portfolio to SF's customers while winning new customers with its enhanced product and service offerings.

Added Yin Zou, CEO, SF DHL Supply Chain China, "This landmark deal gives SF DHL Supply Chain China unparalleled advantage to transform the supply chain industry in China. My team and I are looking forward to amalgamating the best of what DPDHL Group and SF stand for, and converting these into tangible value for existing and new customers. The strong commitment from DPDHL Group and SF has led to the swift and smooth completion of the transaction, and it is full steam ahead for us to deliver top quality turnkey supply chain solutions to enterprises in China."


DHL certified as Top Employer Global for fifth consecutive year

DHL Express is the only company to be recognized in all regions
The World leader in express delivery is one of just 14 companies to be recognized as Top Employer Global

DHL Express has been recognized for the fifth straight year as a leading global employer. Top Employers Institute awarded its prestigious Top Employer Global to DHL after certifying the company's HR practices in 61 countries. DHL is one of just 14 companies to be recognized as Top Employer Global and - for the fifth year in a row - the only company to be certified in all regions.

"Having motivated, engaged employees is the backbone of our business at DHL Express. The passion, loyalty and professionalism shown by our 100,000 employees worldwide ensure we deliver a best-in-class service to our customers, and differentiates us from the competition," says John Pearson, CEO DHL Express. "Receiving the Top Employer Global certification for the fifth consecutive year is great recognition of the investment we make in our workforce and the excellence our people deliver every day."

"It all starts with our people. We have a workforce of motivated people who are insanely customer centric and will do everything to get the job done for the customer. With such a diverse and truly global workforce, our HR function is essential to creating attractive working conditions to attract and retain talent, cultivating a network that operates As One, and helping our business to remain successful in a rapidly changing world," said Regine Buettner, Executive Vice President, Global and Europe HR, DHL Express. "Being ranked among the world's best employers by a reputed external organization such as Top Employers Institute is a great acknowledgment of the effort we have invested in making DHL a place where our employees can enjoy coming to work and realize their full potential."

Top Employer certification recognizes the accomplishments of organizations that are providing the highest standards in employee conditions. The first step in the certification process is participation in the HR Best Practices Survey: a comprehensive analysis of an organization's Human Resources environment. After completion of the HR Best Practices Survey, the Top Employers Institute determines which organizations have reached the required standards to be certified as Top Employers. It then validates its findings, including with the support of a third-party audit, before confirming certification. Regional and global certifications offer additional recognition to employers focused on advancing employee conditions within their entire organization, and the world.

DHL Express was recognized in particular for its strong performance in the areas of Leadership Development and Talent Strategy.


DHL Supply Chain awarded as a Top Employer in eight countries

Top Employers Institute awards DHL Supply Chain for third year in a row

This year DHL Supply Chain was certified as a "Top Employer" in Spain, Portugal, the Netherlands, UK, Canada, USA, Brazil and China

Besides Talent Strategy, DHL also received top marks in the areas of Leadership Development, Career & Succession Management and Learning & Development

For the third consecutive year DHL Supply Chain, market leader in contract logistics and part of the Deutsche Post DHL Group, has again been recognized as a Top Employer on the international stage. This year DHL Supply Chain also received recognition for its outstanding human resources policy in eight countries - including Spain, Portugal, the Netherlands, UK, Canada, USA, Brazil and China. Together these markets represent around 60% of the division's total workforce.

"We are delighted to be awarded as a Top Employer for the third year in a row. This certificate demonstrates that our efforts to create a sustainable HR strategy at DHL Supply Chain are paying off," said Rob Rosenberg, Global Head of Human Resources at DHL Supply Chain. "Especially in the field of contract logistics, a motivated and well-trained workforce is key to offering customers optimal solutions. Which is why we take a proactive and multi-layered approach to both attracting and retaining employees. And this approach is proving successful, as shown by this renewed certification from the Top Employers Institute."

For over 25 years, Top Employers Institute has recognized employers around the world who create excellent working conditions for their employees. Certification is based on a comprehensive audit of people processes spanning across 600 aspects of Human Resources. In particular, DHL Supply Chain was singled out for its approach in the areas of Talent Strategy, Leadership Development, Career & Succession Management and Learning & Development. The certification process consists of an extensive HR Best Practice survey including a third party audit.

DHL Supply Chain offers several programs aimed at career development und personal development. The in-house Certified Supply Chain Specialist (CSCS) training program offers employees the opportunity to expand their knowledge across all areas of supply chain operations - from transport and warehousing to sales and finance. Programs such as the Global Volunteer Day and the multiple GoHelp initiatives give employees the chance to put into practice the key tenets of social responsibility promoted by DHL - supporting the community, protecting the environment and promoting education.


DHL Express builds new state-of-the-art hub at Copenhagen Airport

DKK 1 billion (approximately EUR 134 million) investment raises DHL operations to new heights
Hub will be ready in 2023 and able to handle five times as many packages as today

Vallensbæk - DHL Express will make its largest ever investment in Denmark and the Nordic countries with a new hub at Copenhagen Airport. The hub will significantly improve the speed and quality of DHL Express' activities in the region. With new state-of-the-art automated systems, DHL will be able to handle nearly 37,000 packages per hour, 24 hours a day, in the 26,172 m2 building, which also includes offices. The company, which was voted Denmark's best workplace in November 2018, therefore expects to add 100 new jobs.

"We want to grow through quality. Therefore, we are investing significantly into the expansion of our infrastructure to increase efficiencies and to improve delivery capabilities. Our international hubs are the backbone of our global network which connects businesses from all industries and private customers alike, and enables them to benefit from the ongoing e-commerce growth." says John Pearson, Global CEO of DHL Express.

Packages to and from Denmark usually travel via the DHL hubs in Leipzig, Germany, or East Midlands, UK. However, once the new hub at Copenhagen Airport is built, planes will reach their destinations more directly and without additional stops along the way. Fewer stops mean faster delivery, which is critical for many companies' business and vital for consumers today.

"We are experiencing enormous growth in our cross-border online trade," states Atli Einarsson, Managing Director of DHL Express in Denmark. "We are also preparing for our customers' growth, including manufacturing companies within the pharmaceutical and fashion industries. This massive upgrade of our facility will turn it into one of the most modern of our 19 regional hubs worldwide. This demonstrates the importance of our country's future role in the network. The new regional hub will benefit businesses and consumers in Denmark and throughout the Nordic region."

Future-proofing capacity

DHL Express is in the midst of further strengthening and future-proofing its business. In 2018, the logistics giant announced to purchase 14 new Boeing 777 air freighters and five Airbus A330s, expanding the fleet to over 260 planes. In Denmark, the company also broke ground on a new terminal in the central city of Fredericia at a price tag of more than DKK 100 million (approximately EUR 13.4 million). It is slated to open in early 2020.

"The new investments here in Denmark and at other locations in our network are part of our global plan to promote our future growth, efficiency improvements in day-to-day operations, and the quality for which our customers choose us," says Einarsson.

Copenhagen Airport Group CEO Thomas Woldbye considers DHL's billion-kroner investment as an important investment for Denmark - and a pat on the back for the airport, following many years of strong and close collaboration. "Air freight is crucial for maintaining and developing the Copenhagen Airport as a key Northern European hub. We consider expansion a key target in our strategy, and we are very grateful that DHL has chosen CPH for their new hub. We can see growing demand for high-quality air freight facilities to handle the increasing volume of freight to and from places like China. It also meets the needs of consumers, who do more and more of their shopping online. This really is great news for Denmark and the region!" declares Woldbye.

DHL Express' new freight terminal will be located on a 43,116 m2 site in the eastern freight area of the airport, where a new Airport Business Park is in the works as well.The new 36,500m? hub (including warehousing and offices) almost quadruples the capacity of DHL Express in Brussels. At full capacity, the hub's two automated sorting systems can process up to 42,000 packages per hour, making it the fifth largest hub in the global DHL network. It offers air and ground links to a broad number of European destinations, as well as direct intercontinental connections to the Americas, Middle East and Africa.

Koen Gouweloose, Vice President of DHL Brussels Hub, said: "This new hub is a great example of some of the latest state-of-the-art logistics technology. It allows us to process even more packages even more quickly and efficiently. As a hub, this allows us to play an important role in the network, while paying close attention to security and working conditions for our 1,200 employees, who are in turn ensuring that our clients are receiving the great service they expect from DHL Express."

At the official opening of the new hub, DHL Express welcomed 200 VIP guests, among them Belgian politicans, including Vice Prime Minister and Minister of the Interior Jan Jambon, Vice Prime Minister and Minister of Digital Agenda, Telecom and Postal Services Alexander De Croo, Federal Minister of Mobility François Bellot, and Flemish Minister of Mobility Ben Weyts, and major customers, such as the RSC Anderlecht football club and luxury leatherwear producer Delvaux.

Danny Van Himste, Managing Director of DHL Express Belgium and Luxembourg, said: "The new hub allows us to provide an even better service to our customers. We can help Belgium be even better connected to Europe and the world. We are addressing the needs of customers of all sizes and from all industry sectors in the Belgian market. With the hub giving us extra capacity, speed and flexibility, national borders should be no barrier to our customers."

As part of DHL's GoGreen program the new hub reduces the company's ecological footprint by 768 tons of CO? per year, thanks to its more efficient sorting techniques and better insulation. It is also certified to the TAPA 'A' security standards.



FedEx Trade Networks Rebrands as FedEx Logistics

FedEx Corp. (NYSE:FDX) announced that FedEx Trade Networks, Inc. is being rebranded as FedEx Logistics. The new name describes the company’s ability to meet its customers’ increasingly complex and industry-specific supply chain, transportation, value-added services, and brokerage needs. FedEx Logistics provides specialty solutions that complete a simple, seamless and powerful global trade experience for FedEx customers around the world.

“We’re adding tremendous value by bringing all of the specialty services we offer under the FedEx Logistics banner,” said Richard W. Smith, president & CEO of FedEx Logistics. “The global solutions we offer are dynamic and customizable, and the experience for our customers is more streamlined, more efficient and better represented as a collective competitive offering as FedEx Logistics. Our simplified customer interface and comprehensive ability to meet every logistics need will have a profound effect for FedEx customers, our team members, and on our industry as a whole.”

FedEx Logistics will continue to operate from its global headquarters in Memphis, Tenn. The organization’s service offerings include:

? Air & Ocean Cargo Networks
? Trade Brokerage & Facilitation
? Custom Critical Services
? Supply Chain Services
? Cross Border E-Commerce & Fulfillment
? Forward Depots & 3D Printing

The capabilities within these specialty logistics service offerings include air and ocean freight forwarding, customs brokerage and international trade compliance, warehousing and transportation management, time- and temperature-controlled deliveries, critical inventory logistics, solutions for cost-effective international e-commerce trade and fulfillment, and repair and return services.

Serving more than 200 countries, FedEx Logistics leverages the power of the extensive international FedEx transportation network to provide customers a single source for end-to-end management of their shipments and global supply chains.

About FedEx Logistics
FedEx Logistics plays a key role within the FedEx portfolio, connecting 95 percent of the world’s gross domestic product (GDP) with its comprehensive suite of specialty logistics solutions. The company provides air and ocean freight forwarding, supply chain solutions, specialty transportation, cross border e-commerce technology services, customs brokerage, and trade management tools and data from a single trusted source. For more information, visit fedex.com/logistics.


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.


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