Deutsche Post DHL Group invests 2 billion euros in digital transformation3. October 2019
Deutsche Post DHL Group invests 2 billion euros in digital transformation
Deutsche Post DHL Group, the world’s leading logistics group, yesterday unveiled its new corporate strategy. With its “Strategy 2025 – Delivering excellence in a digital world”, Deutsche Post aims to set the course for the continuation of its successful growth course beyond the horizon of the previous “Strategy 2020”. Firstly, this means: more consistently than in the past, tapping the continuing great potential for long-term profitable growth in its core logistics businesses. Second: accelerate the digital transformation of the Group already initiated in all divisions. By 2025, the Group will have invested around 2 billion euros in digitization. The investments in digitization are expected to contribute at least EUR 1.5 billion to earnings annually by 2025.
“Deutsche Post DHL Group is stronger than ever before. We are convinced that future growth will result from a consistent focus on our profitable core logistics businesses – and digitization will be the biggest lever,” said Frank Appel, (see photo) CEO of Deutsche Post DHL Group at the presentation of “Strategy 2025” in Frankfurt am Main.
Like many other industries, logistics is changing rapidly. Geopolitical influences, such as increasing trade conflicts, are increasing uncertainty. Thanks to its well-balanced portfolio, the Group is already very well positioned today to achieve sustainable profitable growth and shape the future of logistics. “With 550,000 well-trained and committed employees and activities in more than 220 countries and territories worldwide, the Group is the largest and most global logistics service provider in the world. With its five divisions, the company covers the entire spectrum of logistics and occupies leading market positions in all its businesses. This is precisely why Deutsche Post DHL Group is also more robust and resilient than other logistics providers,” says a press release.
In addition to concentrating on profitable core businesses, the consistent digitization of all businesses will be the central lever for the further development of Deutsche Post DHL Group. The already initiated digital transformation of the Group will be accelerated. The company will spend around 2 billion euros on this by 2025. The aim is to further improve the customer experience and working conditions for employees and to further increase operational efficiency.
Deutsche Post DHL Group will comprehensively modernize its IT systems by 2025. Targeted training measures will enable employees to apply new technologies and thus continuously improve services, processes and standards. Increased efficiency is to be achieved through greater automation and improved transaction processes, for example in warehouses or through the increased use of robots. By evaluating large amounts of data with the help of algorithms, for example, routes can be optimized. The prediction of the work volume and the resulting resource planning can also be further improved. “In the future, we will bundle our technological capabilities as a Group in global Centers of Excellence. There we will centrally develop key technologies such as Internet of Things, IoT, and then make them available to our divisions. In this way, we will use our strength as a Group to drive forward our digitization,” said Frank Appel.