Fashionable DHL launch centre of excellence
On 17 February, DHL launched their Fashion and Apparel Centre for Excellence, based largely in Tirupur, Tamil Nadu, India, to facilitate trade within the region, Europe and North America On 17 February, DHL launched their Fashion and Apparel Centre for Excellence, based largely in Tirupur, Tamil Nadu, India, to facilitate trade within the region, Europe and North America.
The first-of-its-kind centre across Asia Pacific will comprise of a core team of industry experts and be responsible for developing bespoke products and solutions and provide consultancy services to customers.
DHL Global Forwarding is capitalising on the opportunity in the fashion and apparel logistics industry, estimated to be worth $3.9bn per annum in South Asia. India, Pakistan, Bangladesh and Sri Lanka alone are estimated to account for well over $2.4bn in this fast-growing industry.
DHL's services cover the entire logistics value chain of the fashion industry – from material purchasing to the sampling business, to quality control of production and direct delivery to the boutiques of international fashion companies.
“South Asia is a key sourcing, manufacturing and distribution base for the global fashion industry. The logistics sector is worth over $3.9bn per annum, and it forms a critical component in the global supply chains of the world’s best known brands,” said Amadou Diallo, CEO, South Asia Pacific, DHL Global Forwarding. “In South Asia, finished apparel is the fastest growing segment and is expected to continue to grow rapidly. As manufacturing moves to lower cost countries, supply chains in the fashion industry have become extended and more complex, increasing trade and legal demands including import controls, quotas and tariffs.”
DHL Global Forwarding’s focus on the fashion and apparel sector is timely as apparels and footwear constitutes the largest airfreight and ocean freight export commodity group from South Asia to Europe, accounting over 16% of total airfreight export volumes, and 13% of total ocean freight export volumes.
Apparel and footwear also dominates the top airfreight and ocean freight export trade lanes from South Asia to Europe. India-Germany is the top airfreight export trade-lane for South Asia, and apparel and footwear comprised 33% of total airfreight export in 2008. Vietnam – Germany is the top ocean freight export trade-lane for South Asia and apparel and footwear was the largest commodity exported accounting for 28% of total ocean freight export in 2008.
“Fashion companies compete on design, price and range availability. Multiple seasons each year result in product complexities of size, color and style. More importantly, garments need to be available for sale where and when they are needed. A holistic supply chain management solution can deliver a competitive advantage by enabling customers to gain greater control of their supply chains and maintain the highest levels of product availability,” said Diallo.
The DHL Fashion and Apparel Centre for Excellence in India will comprise of a core team of industry professionals who will undergo extensive training with DHL fashion experts based in Europe and North America. The location is strategic as Tirupur is known as the “Knitwear Capital” of India and caters to some of the world’s best-known brands and retailers.
With in-depth understanding of the fashion and apparel logistic requirements in Europe and North America, the centre will develop customised solutions at origin and enable customers to better manage the product flow further upstream in their supply chain. Significant resources will also be dedicated to introducing a range of IT tools to cater to the demands of the different segments of the fashion and apparel industry – tools to enhance visibility, reporting and exception management.
The centre will also oversee best practice implementation of processes that enable prompt and proactive management of supply chain issues that fashion and apparel customers and manufacturers have to deal with. In essence, the DHL Fashion and Apparel Center for Excellence will be the extended logistics arm of customers in Europe and North America – managing the flow of their merchandise and delivering them to the consumers at the right quantity, right place, right time and right cost.
DHL shared its plans on the back of its South Asia Pacific – Europe Trade Lane Summit attended by senior regional executives from DHL Europe and South Asia to kick off the launch of the DHL Fashion and Apparel Center for Excellence in India.
“With the economic slowdown in the key fashion and apparel markets in Europe and North America, our customers are looking for greater efficiencies and lower inventory levels throughout the supply chain. The DHL Fashion and Apparel Centre for Excellence will help stakeholders in the supply chain streamline their complex logistics processes and better manage their product lifecycle across different sale channels,” said Mark Lau, head of Fashion & Apparel Business Development for DHL Global Forwarding Asia Pacific.
“We’re upbeat about DHL’s growth potential in the fashion and apparel industry with India serving as the hub for textile and apparel production for the Indian sub-continent. DHL’s Fashion and Apparel Centre for Excellence in India will boost the developmental support for the industry and help facilitate trade within the region and with Europe, where DHL has extensive fashion and apparel network capabilities and experience,” added Lau.
Globally, DHL is involved in key industry events in the fashion sector. DHL is the official express delivery and logistics partner for IMG’s Fashion Weeks around the world. IMG's Fashion Weeks is a series of prestigious shows by IMG Fashion in 10 countries annually. As the official logistics partner, DHL will provide logistics services to participating countries. In Asia Pacific IMG's Fashion Week events will take place in Mumbai, Sydney and Hong Kong.
