Demographics: The changing face of customers
Demographics: The changing face of customers
Read MoreTag: DHL
DHL's Hickler shares views on shipper service, markets
LM: Much has been made of DHL’s commitment to improving customer service in the U.S. How are things going on that front?
HH: The important thing to note is that we are not claiming victory. We are putting a stake in the ground. Our industry—whether it is 3PLs, supply chains, or broader logistics—does not have a Starbucks- or Ritz-Carlton-type equivalent that says this company really gets the customer and is all about driving a better and unique customer experience. That is what we are targeting.
LM: How are you doing that?
HH: By coming in with the realization that customers in general are not thinking that our industry is about the customer. But we think there is a place for that, and our customers are telling us that. Bain & Company surveyed 360 companies and found that 80 percent of those surveyed said their customers were receiving superior service. That means there is a huge mismatch there, and we want to change that in our industry. It is a bold move, but I think that is what our brand stands for, and we have to do things to stand behind that.
LM: What steps need to be taken for DHL to stand behind that belief?
HH: We believe we need to shift from a performance paradigm to one of service. This industry has been one that is all about incredibly high performance levels, whether it is express, package delivery, or overnight. And it is in relation to how our processes are engineered, its relation to the IT capabilities, or just how we can deliver the product. It is a very performance-oriented discussion, and that is ingrained in the actual fabric of the product that the differentiation lies in the service paradigm. Those are the chips needed to get into the game; we need to be highly reliable across all dimensions, but that doesn’t really define anything that would “wow” the customer. That dimension is service.
LM: A lot of attention has been given to the state of our country’s transportation infrastructure, with congestion hitting maximum capacity and politicians and industry associations calling for a “national transportation policy” to address these issues head-on. What needs to happen to move in the right direction?
HH: The issues are the same as they have been since the West Coast labor strike occurred a few years back. The West Coast can very quickly become a bottleneck to transportation throughput, be that port throughput or road or rail infrastructure. In terms of national policy, understanding what the choke points are in how freight flows [for rail and trucking infrastructure component] is critical. From a customer standpoint, there is a lot of dialogue happening around adjusting the movement of goods and the location of distribution centers. They’re also looking at locations on different coasts to hedge themselves against problems. This is as much about customers looking at their supply chains as it is about legislation.
Read MoreABX Air to provide two freighter aircrafts to DHL Network
ABX Air has agreed to provide two of its 767-200 freighter aircraft in support of DHL’s U.S. air network during 2008.
The agreement covers two 767-200 freighter aircraft that are not among ABX Air’s 29 767s already dedicated to DHL service. One of the two 767-200s will initially be operated in support of DHL through June 2008 with an opportunity to extend the term, and the second for the full year.
One of them has operated on behalf of DHL for most of 2007 under an agreement that expires at the end of this year.
Starting in 2008, DHL will pay ABX a fixed monthly fee for the aircraft and certain airframe maintenance expenses. Additionally, DHL will reimburse ABX Air with a mark-up for flight crew, maintenance and other expenses associated with operating the aircraft.
Wilmington, Ohio-based ABX Air is an air cargo services provider operating out of Wilmington and fourteen hubs throughout the United States. In addition to providing airlift capacity and sort facility staffing to DHL, ABX Air is a Part 121 operator and holds a Part 145 FAA Repair certificate.
The company provides charter, maintenance and package handling services to a group of customers.
Read MoreDHL wins Bahrainisation awards
DHL has been recognised for its training and development excellence and commitment to Bahrainisation with two national awards.
In a recent ceremony held under the patronage of Labour Minister Dr Majeed Al Alawi and organised by the Specific Council for Vocational Training, DHL was commended for its training programmes aimed at grass roots, vocational development of Bahraini nationals, particularly youth, as well as for its overall employee development programmes.
DHL’s investment in training during 2007 has increased by 58 per cent compared to 2006, and reflects the company’s commitment to providing service excellence through its people, in order to be the first choice for customers.
The investment is expected to increase in 2008, as a result of plans to develop Bahraini managers, and the introduction of several new training initiatives and programs to develop local skill sets.
Training in DHL is divided into three categories including technical skills training, developmental training, and management development training. In 2007, 190 staff were trained in various technical skills which included such elements as using freight handling and loading equipment.
Management development is also high on the agenda, with a series of new training programmes implemented this year, including “Your Way to Success: Supervisory Development” and “Bullet Proof Manager: Management Development programme”.
DHL plans to introduce an additional Management Development program in 2008 under the name “The Leader Within”.
Read MoreTop China logistics firm eyes USD 2 bln IPO
China Post Logistics plans to raise over USD 2 billion in a Hong Kong and Shanghai stock market listing in 2008, sources said, amid mounting foreign competition in the booming sector.
The company, run by the state operator of the country’s huge postal system, is expected to raise at least USD 2 billion in total on both markets, though it was too early to tell how much it could rake in eventually, one of the sources familiar with the deal told Reuters.
“We do have a listing plan, but now we don’t have any timetable, maybe next year or later,” a China Post Logistics spokesman said. He declined further comment.
The state-owned logistics firm — established in 2003 with a 370 million yuan (USD 50 million) capital base — is set to balloon in size. Its parent has embarked on a plan to merge the firm with its own nationwide express mail service.
The spokesman said any listing timetable should depend on the progress of the merger, which is expected to finish in 2008.
Robust economic growth and surging foreign trade is propping up growth in China’s sprawling transportation and logistics industry.
The country’s logistics sector chalked up turnover of 53.7 trillion yuan in the first three quarters of 2007, up 25.5 percent, according to the China Logistics Information Centre.
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