2012 Business Outlook - DHL Asia

by From the Top on 2012-01-06

Herbert VongpusanachaiDHL’s Performance in 2011
Due to the rapid integration of leading Asian economies and free-trade agreements reducing barriers to international commerce in recent years, the logistics industry in Asia-Pacific is expected to record double-digit growth increases over the next three years. This is according to the latest report from research firm Transport Intelligence (TI).

DHL’s recent financial results echo these findings as we saw strong performance during the third quarter of 2011, indicating a clear continuation of the growth the company experienced in the first half of the year. Compared to the same period in 2010, Deutsche Post DHL (DPDHL) saw its revenue increased by 2.5 percent to EUR 13.1 billion between July and September. According to the latest Q3 2011 results announcement, the Asia-Pacific region proved to be the growth driver for both the Group and the EXPRESS division, which continued with its successful revenue and earnings development, further accelerating business momentum.

The third quarter performance once again underscores DHL’s exceptional market positioning and that our business is robust enough to cope with changing market conditions. Our success is rooted in DHL’s Strategy 2015, where we strive to be the Provider of Choice for customers, the Employer of Choice for our staff and Investment of Choice to our investors.

In 2011, we launched our most ambitious global advertising campaign - The International Specialist Campaign (ISC) where we engaged global media across 42 key markets worldwide. The brand campaign highlights our global capabilities to meet the express shipping needs of all industries and commitment to improved service levels. The campaign brings to life the spirit and passion that has helped DHL become the Number One global player.

Looking beyond delivering top notch service to its customers, DHL has always taken our environmental and social responsibility seriously. Combating climate change by becoming more carbon-efficient is DHL’s commitment towards ensuring a more sustainable environment. DHL is the first global logistics provider to set quantified CO2 efficiency targets under its GoGreen program (one of the three key pillars of DPDHL’s Corporate Responsibility program) in 2007. Adopting a three-pronged approach, namely active fleet management, real estate management and employee engagement, DHL Express Singapore reported an impressive 15.7% improvement in its CO2 efficiency despite experiencing a surge in volume.

More notably, being the first in Asia to embark on a pilot trial of the Vehicle Energy Reduction Program (VERP), DHL Express Singapore saw a five per cent improvement in fuel efficiency within a short nine-week period following the launch of the trial. These improvements are only possible through actively monitoring and improving vehicle fuel economy by changing driver behaviours.

We also marked Global Volunteer Day 2011 in Singapore where about 450 employees from across divisions provided sports and educational mentorship as well as participated in reforestation efforts as part of its global drive to give back to local communities and to inculcate the spirit of volunteerism among employees.

As DHL endeavours to be the Employer of Choice, we are glad to have achieved the best scores ever in our internal 2011 Employee Opinion Survey, with strong improvements in every single category and Asia-Pacific taking the lead among the other Express regions. Notably, customer promise and employee engagement stand at 83 percent and 80 percent respectively, indicating that DHL’s staff are not only confident in their ability to meet the needs of our customers but are also actively involved in company-driven employee engagement programs.

Critical Growth Drivers for 2012
Riding on the momentum experienced in 2011, DHL Express will continue to grow our business through focusing on our strengths while expanding our footprint in Singapore.

Continue assisting local SMEs expand in the global market
For close to 20 years, Singapore’s small-medium enterprises (SMEs) have been a consistent source of growth for DHL, contributing to our current performance. Despite the uncertain economic times witnessed in 2011, SMEs continued to remain resilient and have been streamlining their processes and creating competitive advantages for them to retain and drive customer demand. DHL will continue assisting local SMEs penetrate the global market by offering effective logistics solutions to overcome the five critical challenges faced by these SMEs – speed, reliability, expertise in trade regulations, dynamically linked networks and real-time tracking and tracing.

Continue supporting the local business scene through participation in key local events
Elevating DHL Express Singapore’s presence on other marketing platforms, DHL will be channeling more resources and sponsoring some key local events in 2012.

Pledging its support to the local business scene, DHL Express Singapore will be sponsoring two key local initiatives namely the Singapore 1000 and SME 1000 as well as Singapore Business Awards 2012. 

Secondly, given Singapore’s standing in the aerospace and life sciences industry within Asia Pacific, it is not surprising that the country is also the region’s leading organizer of aerospace shows and biopharmaceutical conventions. DHL Express has committed its support and will be participating in the two highly anticipated trade shows - Singapore Airshow 2012 and Biopharma Asia Convention 2012 as one of their key sponsors.

Continue to Deliver on DHL’s Customer Promise- to be the Provider of Choice
In our industry, providing excellent service is our promise to our customers. DHL will continue to drive the Certified International Specialist (CIS) training program, an accreditation program designed by DHL by equipping the employees with the tools and techniques to maintain a high level of excellent service needed to meet the changing international business environment. Going hand in hand with the CIS training program, DHL will continue to increase brand awareness and top-of-mind recall through our global ISC while reinforcing our brand promise to deliver superior level of service.

Continue to be an Employer of Choice
Any business in the mail and logistics sector relies on a large workforce. The competencies, commitment and motivation of our employees are key factors in ensuring the long-term success of the company. It is therefore crucial to fully develop the potential of each individual working within our organization to achieve the other two core targets of our Group strategy – becoming Provider of Choice and Investment of Choice. We will continue to promote a culture of dialog and diversity, invest in creating a safe and healthy working environment and provide our employees with opportunities to grow and develop.

2012 marks DHL Express’ 40th anniversary in Singapore and we will remain focused on the course we have charted by reinventing the logistics business through the introduction of innovative initiatives and processes to effectively address our customers' and employees’ needs. We will continue to engage and stay close to our customers, remain nimble in order to maintain our lead as the logistics provider and employer of choice.

Herbert Vongpusanachai, Managing Director, DHL Express Singapore