DHL set to offer tailor-made services to retail, pharma and IT

In a move that realigns its business operations in India, global logistics and express service provider DHL plans to restructure its high growth Asia-Pacific operations to provide customised solutions through an integrated structure for sectors as varied as retail, pharma and IT, as growing demand underscores business needs to avail logistics services under one roof.

DHL Global Forwarding, part of the DHL group, has realigned the Asia-Pacific region into two buckets — North Asia Pacific and South Asia Pacific — for greater customer focus. The company is in talks with various pharma, retail and IT companies including Dr Reddy’s, GSK, Cipla, Ranbaxy, Reebok, Nike, Mark & Spencer’s, among others for designing solutions which would include all aspects from sourcing and making to delivering, said DHL Global Forwarding CEO (South Asia Pacific) Amadou Diallo.

“The (Indian) economy is booming which creates a demand for this growth market as never before,” he told ET. “DHL recognised this demand some time ago and integrated into its service offering. At the same time our company is going to invest in India, in its people and in infrastructure to bring greater efficiency to our business and India’s logistics market as a whole,” he added.

The North Asia Pacific region covers Greater China, Japan and Korea, while the South Asia Pacific covers the South East Asia region, South Asia (including India) and the South Pacific (including Australia). Through this restructuring DHL hopes to provide better customer service, accommodate future growth and focus more on distinct regional priorities.

In recent years, the Asia Pacific region has accounted for approximately 50 pct of Global Forwarding’s total revenue. “It was decided that a geographic split in the region would facilitate greater customer focus and engagement” Mr Diallo added.

Since logistics outsourcing is still at an early stage in India, it presents a significant opportunity for global companies wanting to go global. The move also streamlines their non-core processes and reduce costs while increasing focus on core manufacturing and marketing capabilities.

Mr Diallo also believes that the restructure of DGF will imply increased realisation across companies, improved distribution and logistics systems, he added. At present, DHL Global Forwarding comprises international air and ocean freight as well as overland transportation services. DHL Global Forwarding is the international market leader in the air and ocean freight business.

According to DHL, the Indian logistics market is estimated to be around USD 45 billion. By 2015, it is expected to reach almost USD 122 billion, growing at a compounded rate of over 11 pct, which is higher than the growth rate of the Indian economy.