DHL Kenya goes the Smartcard way
Slow industrial growth in Kenya and rapid changes in technology has forced DHL, one of the world's biggest transport and logistics companies, to shift its focus from cargo handling to retail operations.
The change has come at a price, though, as DHL has had to introduce new technology to survive in this new business while easing service delivery and winning client loyalty.
The SmartCard service will be officially unveiled early next month, according to the company's management.
The SmartCard system was installed in all the company's offices in the country at a cost of more than Sh3.7 million ($50,000).
Kenya is the second country after India to install the technology, which will be rolled out to all DHL branches worldwide.
"This is to show DHL's commitment and confidence in Kenya, given also that we chose the country to be our regional headquarters for 12 other countries," said Mr Howard Goldfield, the company's area commercial manager for Equatorial Africa.
The SmartCard, the size of a bank ATM (automated teller machine) card, stores the user's data and transaction history, meaning that the moment it is inserted in the system all the information will be displayed on the computer monitor, making it easy and fast for the teller to serve the client.
This, Mr Goldfield said, will not only speed up service delivery, but will also increase client loyalty in a market characterised by stiff competition from other multinationals.
The new technology will also enable DHL to introduce post-paid services so that one will not have to carry hard currency when using DHL to deliver parcels. And that carries with it the advantage of the company using the card to control their postage expenditure while keeping track of the client's postage record.
"Our aim is to focus more on our retail operations, which currently account for between 20 to 25 per cent of our business," Mr Goldfield said.
"This will ensure that our retail customers get value for their money and the attention they deserve."
DHL, arguably the global leader in express transport and logistics, has managed to extend its dominance in the world by providing fast and reliable services, he said. Its strong presence has also been bolstered by the ability change to suit its customers' needs.
Said Mr Goldfield: "DHL's growth has been propelled by our customers' needs. It is demand-driven, which explains the success in our ventures.
Faced by a unique task, customers turn to DHL seeking for solutions, which we happily provide, only for what looked like a one-off assignment to become a routine.
"That's how we converted from just a mere parcel delivery outfit to be involved in national road transport, warehouse management, airline and cargo carriage businesses."
In Kenya DHL has been more involved in the bulk cargo transport, which explains its presence in only three major towns – Nairobi, Kisumu and Mombasa.
But that does not mean DHL doesn't serve those located outside these towns. It has entered into a service agreement with Securicor Couriers, a local courier company, to cater to the needs of clients in other towns like Eldoret, Nakuru and Nyeri among others.
"Securicor Courier represent us in the rest of the country," said Mr Goldfield.
Tailored for bulk cargo handling, the company has put up a state-of-the-art gateway at the Jomo Kenyatta International Airport (JKIA) at cost of Sh74 million. It has also invested heavily in Malindi for docking and offloading of its ships.
But lack of investment in value adding industries, especially agriculture, has slowed the company's growth in the machinery and spare parts importation business.
Mr Goldfield said the company has shied away from handling raw materials such as coffee and tea exports due to small profit margins.
Technology advancement has also meant that some of the traditional roles played by logistics companies like document delivery have been taken over by the Internet.
The company has had to adapt fast to remain competitive, the manager said.
"We have to pay attention to industrial changes and adjust accordingly."
And Goldfield knows better having worked with the company as area commercial manager since 1997. This is his second stint in the country, the first being in 1983 to 1988 when he helped set up the company
offices.
And with growing demand for faster information dissemination, DHL has introduced a range of services that will make it easy for clients to track their consignment. From the comfort of your bedroom or the office you can track your shipment through the short message text (sms). SmsTrack is available on both the Celtel and Safaricom networks.
The company has also installed radio frequency devises on their trucks to relay immediate signals to the central system when goods are delivered. The information is accessible to both the management and customers.
Mr Goldfield said the on going modernisation of the clearing and forwarding process by Kenya Revenue Authority would revolutionise the transport and logistics industry.
