SUPPLY CHAIN Division
Customer-centric outsourcing solutions
As the world's leading contract logistics provider, we create a competitive advantage for our customers in the supply chain business by delivering customised logistics solutions based upon globally standardised modular components including warehousing, transport and value-added services.
Contract logistics for a complex global marketplace
A highly complex and rapidly changing global marketplace is the source of unprecedented change for the supply chain industry and its customers. Stand-alone warehousing and transport operations cannot adequately respond to the fast pace of business and growing interconnectedness created by global commerce. Our core business in Supply Chain requires increasingly integrated and sophisticated logistics solutions that combine value-added and management services with traditional fulfilment and distribution offerings.
Planning, sourcing, vendor management, production, kitting, packaging, repairs, returns and recycling are the new norm in contract logistics solutions. Through global standardisation and innovative offerings, such as service logistics and real estate solutions, Supply Chain's business will further consolidate its established leadership position in global contract logistics.
Increasing market share in growth markets
DHL remains the global market leader in contract logistics, with a market share of 7.4 % (2014) and operations in more than 50 countries. The top ten players only account for around 20.3 % of an estimated EUR176 billion market. We lead the market in mature regions such as North America and Europe and are well positioned in rapidly growing markets such as India and emerging markets throughout the Asia Pacific region. Our global scale, standardised solutions and local knowledge are supported by on-going investments in infrastructure and our employees in these key markets, strengthening our local capacity for growth.
Industry expertise in key sectors and products
Customers value the innovation derived from our breadth of knowledge and depth of expertise in the Automotive, Life Sciences & Healthcare, Technology, Engineering & Manufacturing and Energy sectors. Specialised sector solutions with a global focus on Life Sciences & Healthcare, Automotive and Technology will allow us to capitalise on market opportunities and accelerate growth.
The Life Sciences & Healthcare sector is increasingly outsourcing parts of its supply chains to providers who can ensure compliance with stringent regulatory requirements. Rising demand for packaging services, temperature-assured transport, warehousing and direct-to-market solutions is driving growth in this sector.
Automotive sector growth remains strong in North America and Europe, with continued leverage of Supply Chain's in-plant and aftermarket logistics. Production is shifting increasingly to emerging markets such as China, India and Brazil, where we are making targeted investments to strengthen our market position. Integrated solutions such as Lead Logistics Provider (LLP) offer sustainable growth opportunities in this highly competitive outsourcing sector.
Service logistics, technical services and LLP continue to be focus areas of growth for the Technology sector. Responsive solutions that allow our customers to adapt to dynamic market conditions are creating business opportunities in both mature and emerging markets.