SUPPLY CHAIN

Customer-centric outsourcing solutions

As the world leader in contract logistics, we offer customers standardised warehousing, transport and value-added services that can be combined to form customised supply chain solutions.

Our contract logistics services include planning, sourcing and production activities as well as packaging, repairs and returns. These services are rounded out by e-commerce fulfilment services, real estate solutions and management capabilities – one example being our assumption of ground handling operations for easyJet at London Gatwick airport in 2017.

Industry expertise in key sectors

We have in-depth knowledge and experience across all sectors, along with a strategic growth focus upon Automotive, Technology and Life Sciences & Healthcare. The acquisition of Olimpo Holding, Results of operations has given us expanded service coverage in the Brazilian Life Sciences industry and has strengthened our market position.

In the Automotive sector, production is increasingly shifting towards emerging markets in eastern Europe and Asia, particularly given the growth of auto manufacturers in India and China. Integrated solutions such as Lead Logistics Partner (LLP) and Inbound to Manufacturing services offer growth opportunities in this highly competitive outsourcing sector.

Companies in the fast-paced Technology sector require an agile supply chain to handle fast-moving products with short life cycles quickly and cost-effectively. Flexible solutions that allow customers to respond to market demand, particularly in telecommunications, are creating business opportunities in this sector.

Companies in the Life Sciences & Healthcare sector are increasingly outsourcing parts of their supply chains to providers that can ensure compliance with stringent regulatory requirements and through labelling (serialisation) offer solutions to combat product counterfeiting. Rising demand for packaging services, temperature-controlled transport, warehousing and direct-to-market solutions is driving growth in this sector.

Leading position in a fragmented market

In the fragmented market DHL remains the global leader in contract logistics with a market share of 6.2 % (2016) and operations in more than 50 countries. Our market share declined compared with 2015 due to the change in revenue recognition in connection with the UK National Health Service (NHS) as a result of revised contract terms. The contract logistics market is estimated at around €202 billion, with the top ten players only accounting for around 20 % of the total volume. We lead the market in mature regions such as North America and Europe and are well positioned in rapidly growing markets throughout the Asia Pacific region and Latin America.

Contract logistics market, 2016: top 10

Market volume: €202 billion
DHL                                                                            
6.2 %  
XPO Logistics 2.4 %
Kuehne + Nagel 2.1 %
Hitachi Transport System 1.8 %
Ceva 1.6 %  
SNCF Geodis 1.4 %  
Neovia 1.3 %  
DB Schenker Logistics 1.2 %  
UPS SCS                                                                   1.2 %  
Ryder 0.7 %  
Source: company estimates; Transport Intelligence. Revenue figures are estimates based upon gross revenue from external customers; exchange rates as at 2016.