CCJ Innovator: DHL Supply Chain goes full speed to digitalization

CCJ Innovators profiles carriers and fleets that have found innovative ways to overcome trucking’s challenges. If you know a carrier that has displayed innovation, contact CCJ Editor Jason Cannon at jasoncannon@randallreilly.com or 800-633-5953.

Fifty years ago, in September 1969, three business partners in San Francisco (Dalsey, Hillblom and Lynn) had an idea to send cargo paperwork to Honolulu by plane before containers arrived by ship. They started a niche service, DHL, that expanded rapidly by allowing the processing of cargo to start before its arrival.

More recently, business growth for the global logistics provider, Deutsche Post DHL Group, has been driven by globalization and by e-commerce, which represents 90 percent of all retail growth.

Overall, the DHL Group has 550,000 employees worldwide. In the Americas, the company operates four business units: DHL Supply Chain, DHL Global Forwarding, DHL Express and DHL eCommerce Solutions.

For its next wave of growth, DHL Group is fueling the digitalization of the supply chain. A study by global consulting group McKinsey predicts that digital innovation will account for two-thirds of revenue and three-fourths of profit growth for supply chain companies.

Since 2012, digital innovation in supply chain logistics has been the biggest focus of venture capital with an estimated $30 billion in investments made in startups, says Matthias Heutger, the company’s global head of innovation.

“The industry is hotter than ever,” he says.