SUPPLY CHAIN

Customer-centric contract logistics solutions

As the world leader in contract logistics, we offer 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 real estate solutions as well as management and fulfilment services for e-commerce.

Continuing to automate the supply chain

In our customers’ interests, we ensure that our standard tools are well embedded in all operations. As a next step on the efficiency scale, more complex solutions, e. g., wearable devices and collaborative robotics, will be introduced. Overall, the aim is always to increase efficiency along the entire supply chain through standardisation and the use of new technologies. Whilst these efforts generally show benefits across all sectors, we see the largest demand in Retail and Consumer, which generate approximately half of the divisional revenue.

Leading position in a fragmented market

DHL remains the global leader in the fragmented contract logistics market, with a market share of 6.0 % (2017) and operations in more than 50 countries. The contract logistics market is estimated at around €216 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. In Latin America, we have strengthened our presence with the acquisition of the Colombian Suppla Group, note 2 to the consolidated financial statements. Its integration is well on track and delivering the expected results.

Contract logistics market, 2017: top 10

Market volume: €215.9 billion    
DHL 6.0 %     
XPO Logistics 2.3 %  
Kuehne + Nagel 2.1 %  
Hitachi Transport System 1.8 %  
CEVA 1.5 %  
SNCF Geodis 1.3 %  
DB Schenker 1.2 %  
UPS SCS 1.2 %  
Ryder 0.8 %  
DSV 0.7 %  
Source: company estimates; Transport Intelligence. Revenue figures are estimates based upon gross revenue from external customers; exchange rates as at 2017.