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DHL strengthens Latin America presence by acquiring Suppla Company in Colombia [Integrator]

Acquisition is enabling DHL Supply Chain to gain a competitive footprint in Colombia, a country with increasing competitiveness ranking and a favorable environment for foreign investment

DHL Supply Chain, the contract logistics specialist within Deutsche Post DHL Group, has acquired Suppla Group, specialized on providing logistics services in Colombia. Suppla is recognized as a premier logistics provider with local expertise and longstanding customer relationships. With an established products portfolio, including warehousing and packaging services across Life Sciences and Healthcare, Retail, Consumer, and Technology sectors, Suppla has a solid business model with experienced management, stable business principles, and structured governance.

With a longstanding expertise as a national logistics provider, Suppla has a solid local presence in five regions and coverage of 25 cities of Colombia, about 500,000 square meters of storage capacity and around 4,500 employees. This experience in local logistics market is enabling DHL Supply Chain to significantly improve its footprint in Colombia.

"The expansion into the developing Andean region in South America, specifically in Colombia, is key to achieve our Strategy 2020 targets and allows us to unlock further growth potential. With Suppla's proven business results, professional operations and a strong overlap to DHL Supply Chain's culture, products, sectors and customers, we are taking one more step to tap the potentials of a promising market environment and be ready to serve our national and international customers", says Javier Bilbao, CEO DHL Supply Chain Latin America.

DHL Supply Chain's services in Colombia currently include Service Logistics operations, supported by a recently inaugurated warehouse in Bogotá. The acquisition will allow DHL Supply Chain to strategically expand its portfolio in the market: "Colombia has ambitious investment programs in the coming years, and we are confident that this acquisition will strengthen our presence to provide integrated and customized solutions to our local and regional customers", adds Bilbao.

"Becoming part of DHL Supply Chain is spectacular news for us," says Robinson Vásquez Escobar, President for Suppla. "Since our founding in 1944, we have developed people, capabilities and geographies throughout out the country. We are looking forward to merge our local market knowledge with the resources and competencies of a global player, projecting our people in the most global logistics company and giving our customers service opportunities beyond our frontiers."

Posted at 14:58   パーマリンク


DHL Supply Chain introduces end-to-end supply chain visibility platform [Integrator]

MySupplyChain provides comprehensive supply chain management and business intelligence insights to drive competitive advantage

DHL Supply Chain announced the availability of its latest customer technology platform, MySupplyChain. The secure and easy-to-use platform integrates data from DHL Supply Chain applications, providing customers with complete supply chain visibility, accessible online anytime, anywhere, through a single login. MySupplyChain will be available to applicable customers in North America in June, with further regional rollouts to follow.

Through one comprehensive and customizable platform, MySupplyChain allows customers to access track-and-trace data, inventory, operational performance and reporting, business analytics, customer service and more from any desktop or mobile device. MySupplyChain users gain end-to-end visibility of global supply chain operations - from shipments entering the warehouse to final delivery - all in near real time. With this complete view of network-wide inventory positions and warehouse-level order statuses, customers can leverage up-to-date data to identify insights that drive continuous improvement and competitive advantage.

"Through MySupplyChain, DHL Supply Chain is helping customers successfully manage the complexity and maximize the efficiency of supply chain operations," said Sally Miller, CIO, DHL Supply Chain, North America. "Users will no longer have to access and interpret disparate systems to navigate their supply chain demands and analytics. Rather, this platform provides the whole picture, enabling customers to be agile and flexible."

The new globally standardized platform is a key component of DHL Supply Chain's digitalization strategy, enabling customers with end-to-end supply chain visibility. Piloting of MySupplyChain began in early 2018, and the new platform is currently serving nearly 500 users across more than 30 customer accounts. DHL Supply Chain plans to continuously evolve MySupplyChain, including further technology integrations, customer personalization capabilities and more.

Posted at 21:37   パーマリンク

Digital Transformation: Kuehne + Nagel launches KN SwiftLOG, a digital platform for e-fulfilment centres [Integrator]

Scalable platform powered by JDA Warehouse Management with global reach
Designed for omni-channel fulfilment
Advanced picking enhancement technologies embedded
First successful implementation in China

As digitalisation and e-commerce are fundamentally transforming warehousing and distribution, Kuehne + Nagel is launching its new global warehouse management system (WMS) KN SwiftLOG, a scalable platform with global reach, powered by market-leading JDA Warehouse Management.

Gianfranco Sgro, member of the Managing Board of Kuehne + Nagel International AG, responsible for Contract Logistics, says: ”Consumer and business requirements are rapidly changing. Anticipating these trends we constantly adapt the physical and logical organisation of our fulfilment centres and enhance our management warehouse systems. New key variables are process digitalisation, change in order profile, opportunistic inventory allocation and speed. Our customers will benefit from a state-of-the-art platform in the market, which is currently the most important single investment in contract logistics at Kuehne + Nagel.”

KN SwiftLOG represents a new mark in the logistics industry, confirming Kuehne + Nagel’s leadership in advanced technology. JDA Warehouse Management, extended by Kuehne + Nagel features and expertise, generates a unique digital solution, to form a best-in-class platform for omni-channel fulfilment. It is offering specific industry vertical templates.

KN SwiftLOG will become the global standard of Kuehne + Nagel, upgrading more than 400 fulfilment centres across the world. The major advanced picking enhancement technologies and communication platforms to exchange data with the major e-commerce players are already embedded.

“We are pleased to power KN SwiftLOG with our best-in-class JDA Warehouse Management solution, which is facilitating digital transformation for some of the most complex supply chain environments around the world,” said Girish Rishi, Chief Executive Officer, JDA. “JDA has a long track record of delivering WMS solutions for some of the most complex and variable warehouse operations, including third-party logistics, food and beverage, consumer products, retail, and life sciences industries.”

The first implementation was successfully realised in China with an omni-channel distribution centre for a major fashion brand.

Posted at 21:35   パーマリンク


Deutsche Post DHL Group confirms earnings targets for 2018 [Integrator]

First-quarter Group revenue at prior-year level, 6.4% organic growth
Operating profit increases to EUR 905 million
2018 Forecast confirmed: EBIT set to increase to approximately EUR 4.15 billion, with more than EUR 5 billion targeted for 2020
CEO Frank Appel: "Overall we had a good start into the year, although we still have a lot of work ahead of us for the remainder of 2018"

Deutsche Post DHL Group continued its positive business performance of previous years also in the first quarter of 2018. Reported Group revenue was EUR 14.7 billion and with this almost on the level of the prior year (2017: EUR 14.9 billion). The slight decline was mainly attributable to negative currency effects and the sale of the subsidiary Williams Lea Tag. On an organic basis - after adjusting for currency and portfolio effects - Deutsche Post DHL Group increased Group revenue by a substantial 6.4%. Operating profit (EBIT) rose by 2.3% to EUR 905 million. This figure includes a positive EBIT effect of EUR 44 million resulting from the transition to the new IFRS 16 accounting standard, which has been applied since the beginning of the year as previously announced. In addition, EBIT includes a positive effect of 108 million EUR resulting from pension revaluations. These positive EBIT-effects were offset by negative one-offs of EUR 50 million in the Supply Chain division. The international Express business continued to see particularly dynamic growth during the first quarter.

"Overall, we had a good start to the year, although we still have a lot of work ahead of us during the remainder of the year. Global e-commerce continues to boom, meaning that the most important growth driver for our businesses is still intact. We remain confident that we will achieve our ambitious goals for 2018 and beyond," said Frank Appel, CEO of Deutsche Post DHL Group.

Outlook: Medium- and long-term earnings targets confirmed
After an overall good first quarter, the company continues to project an increase in operating profit to around EUR 4.15 billion for full-year 2018. The improvement includes approximately EUR 150 million expected as a result of the transition to IFRS 16. The Post - eCommerce - Parcel (PeP) division is expected to generate EBIT of around EUR 1.5 billion. An EBIT of around EUR 3.0 billion is anticipated from the DHL divisions. As announced before, the company plans to increase EBIT to more than EUR 5 billion by the 2020.

Continued high investments in sustainable growth
To achieve the above targets, Deutsche Post DHL Group again made targeted investments during the first quarter to further strengthen its foundation for long-term profitable growth. The company invested a total of EUR 327 million across all four divisions between January and March (2017: EUR 334 million). Investments focused among others on expanding the domestic and international parcel infrastructure, stepping up production of the StreetScooter electric vehicles and modernizing and expanding the hubs and aircraft fleet used by DHL Express. For full-year 2018, the Group continues to project an increase of capital expenditure to approximately EUR 2.5 billion (2017: EUR 2.3 billion). In addition, the Group will recognize around EUR 200 million for the debt-financed intercontinental fleet renewal at Express.

First quarter sees customary seasonal cash outflow
The Group's free cash flow came to a negative EUR 679 million in the first quarter (2017: EUR -430 million). The significant cash outflow in the first quarter reflects the usual seasonal trend for Deutsche Post DHL Group. At the beginning of each year the company's cash flow is regularly impacted by the annual prepayment made to the Federal Post and Telecommunications Agency for civil servant pensions. The contribution for 2018 was EUR 462 million. The year-on-year reduction in free cash flow was due to higher capital expenditure and cash outflows from working capital, among other factors.

All in all, Deutsche Post DHL Group generated consolidated net profit of EUR 600 million after non-controlling interests in the first quarter of 2018 (2017: EUR 633 million). The decline results from the transition to IFRS 16. Basic earnings per share thus amounted to EUR 0.49 (2017: EUR 0.52).

PeP: German and international parcel business continues to grow
Revenue in the Post - eCommerce - Parcel division increased by 1.7% to EUR 4.6 billion in the first quarter. The division's positive performance was primarily attributable to growth in revenue in the eCommerce - Parcel business unit.

Revenue increased by 6.3% at Parcel Germany, 9.9% at Parcel Europe and 2.6% at eCommerce, where - after adjusting for currency effects - revenue even rose by 16.8%. This trend is another reflection of the Group's successful positioning as a market and innovation leader in the dynamically growing e-commerce market, both in Germany and, to an increasing extent, internationally. The company is further expanding its stance by introducing offers such as its new global e-commerce fulfillment solution for worldwide order management.

In the Post business unit, revenue decreased by 1.5% year on year to EUR 2.5 billion. The slight decrease was mainly due to the known structural volume declines.

In the PeP division, operating profit fell by 9.9% compared with the prior-year period to EUR 383 million in the first quarter. The decrease primarily reflects higher costs and capital expenditure, which are partly related to the growth of the business. In Germany, staff and transport costs both increased, while StreetScooter production and the international parcel business were expanded. The division's EBIT includes a positive effect of 108 million Euro from pension revaluations.

Express: Success story continues
In the first quarter, the Express division again continued the very good revenue and earnings performance sustained over several years. Revenue rose by 4.9% on the prior year to EUR 3.8 billion. Adjusted for currency effects, the increase was 13.2%. This dynamic performance was once again driven by strong growth in the international time-definite (TDI) delivery business, where daily volumes rose by 9.6% compared with the prior-year period.

Sustained growth in volumes will enable the division to utilize its unique global express network even more efficiently. The division succeeded in growing operating profit by 16.4% to EUR 461 million on the back of strict yield management and continuous improvements in the network. The operating margin improved to 12.2%, up substantially from the 11.0% reported a year earlier.

Global Forwarding, Freight: Significant improvement in profitability
The Global Forwarding, Freight division continued its turnaround in the first quarter. Revenue increased by 1.3% to EUR 3.6 billion, adjusted for negative currency effects the improvement was even 7.2%.

The division was increasingly able to pass on higher freight market rates to its customers. At the same time, the additional measures introduced to raise profitability are proving effective. The division's EBIT therefore increased by a considerable 75.0% to EUR 70 million.

Supply Chain: Revenue and earnings impacted by one-time effects
Revenue in the Supply Chain division came in at EUR 3.1 billion in the first quarter (2017: EUR 3.5 billion). In addition to negative currency effects, the revenue decline mainly reflects the sale of UK subsidiary Williams Lea Tag in the fourth quarter of 2017. After adjusting for those factors, the division's revenue increased by 3.8%. DHL Supply Chain continued to generate new business, concluding additional contracts in a total volume of EUR 175 million with both new and existing customers during the first quarter.

Operating profit declined to EUR 55 million (2017: EUR 99 million). The decrease seen here was also largely due to one-time effects. In addition to the deconsolidation of Williams Lea Tag, the operating profit reflects negative one-off effects of EUR 50 million from customer contracts.

Posted at 08:11   パーマリンク

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