DHL to invest €10 million to grow its Vietnamese operations
DHL supply chain has committed to a €10 million investment in its Vietnam operations, to be completed by 2015.
The logistics provider unveiled extensive plans to invest in new facilities and IT solutions including a Warehousing Management System and Transportation Management System to increase efficiency and visibility.
In addition to these upgrades, the company plans to grow its transport fleet and strengthen its workforce to further expand its business in core sectors, and has announced the building of its second 10,000 sq meter built-to-suit distribution centre in Bac Ninh in North Vietnam, which is due for completion in the third quarter of 2013.
Growing its footprint
With the €10 million investment, DHL Supply Chain Vietnam expects to increase its staff strength by over 170 percent, creating 1400 new job opportunities. By 2015, DHL Supply Chain will have over 2200 people in its operations locally.
“Growing talent and training is key for DHL. In the last three years, we have doubled our headcount in Vietnam to the current 800 staff,” said Oscar De Bok, CEO South and South East Asia, DHL Supply Chain. “To meet the demands of our future business and expand our workforce to some 2200 people by 2015, we have rigorous training and development programs in place to grow the local talent pool and deploy industry leading practices in the country”.
Breakdown of investments
- DHL’s Vietnam operations will see a substantial increase (over 50 percent) in DHL’s warehouse space in Vietnam - from 91,000 sq meters to over 141,000 sq meters by 2015.
- The company plans to grow its transportation fleet by over 160 percent, to deploy over 100 vehicles in the next two years.
- The investment includes more advanced IT systems support that offers a range of scalable supply chain execution systems; including a Warehouse Management System, Transport Management System, Spare Parts Logistics System and other value-added systems to enhance and improve supply chain visibility.
- DHL Supply Chain is expanding its office in Hanoi to have full fledged staff functions in order to take responsibility for the whole Northern region of Vietnam.
- Finally, DHL is planning for expansion in the North of Vietnam, including a new Distribution Centre in Bac Ninh DHL Supply Chain has plans for additional expansion in North Vietnam. Spanning 10,000 sq meters, construction is underway for a new built-to-suit distribution centre in Bac Ninh designed to suit the bespoke needs of the Consumer, Retail, and Technology industries.
Scheduled for completion in the third quarter of 2013, the latest facility complements DHL Supply Chain’s existing 20,000 sq meter built-to-suit facility in Bac Ninh which incorporates a Parts Distribution Centre for the automotive industry.
“We’re investing in the future of Vietnam, to successfully replicate best practices from our international operations and - combined with our extensive local experience – showcase industry-leading solutions. Our investments over the next few years will allow us to further grow in tandem with the country’s progress, and offer first-rate services for both global and local customers alike,” said Jan Willem Winkelhuijzen, DHL Supply Chain’s Country Manager for Vietnam.
DHL Claim Multi-Sector Collaboration Key to Fighting COVID
Since January, global logistics leader DHL has distributed more than 200 million doses of the COVID vaccine to 120+ countries around the globe. While the US and UK recently rolled out immunisation plans to most citizens, countries with less developed infrastructure still desperately need more doses. In the United Arab Emirates (UAE), which currently has one of the highest per-capita immunisation rates, the government set up storage facilities to cover domestic and international demand. But storage, as we’ve learned, is little help if you can’t transport the goods.
This is where logistics leaders such as DHL make their impact. The company built over 50 new partnerships, bilateral and multilateral, to collaborate with pharmaceutical and private sector firms. With more than 350 DHL centres pressed into service, the group operated 9,000+ flights to ship the vaccine where it needed to go.
With new pandemic knowledge, DHL just released its “Revisiting Pandemic Resilience” white paper, which examined the role of logistics and supply chain companies in handling COVID-19. As Thomas Ellman, Head of Clinical Trials Logistics at DHL, said: “The past one year has highlighted the importance of logistics and supply chain management to manage the pandemic, ensure business continuity and protect public health. It has also shown us that together we are stronger”.
Multisector partnerships, DHL said, enabled rapid, effective vaccine distribution. While international scientists developed a vaccine in record time—five times faster than any other vaccine in history—manufacturers ramped up production and logistics teams rolled out distribution three times faster than expected. When commercial routes faced backups, logistics operators worked with military officers to transport vaccines via helicopters and boats.
In the UAE, the public-private HOPE Consortium distributed billions of COVID-19 doses to its civilians as well as other countries in need by partnering with commercial organisations such as DHL. For the first time, apropo for an unprecedented pandemic, logistics companies made strong connections with public health and government.
“While the race against the virus continues, leveraging the power of such collaborations and data analytics will be key”, said Katja Busch, Chief Commercial Officer DHL and Head of DHL Customer Solutions & Innovation. “We need to remain prepared for high patient and vaccine volumes, maintain logistics infrastructure and capacity, while planning for seasonal fluctuations by providing a stable and well-equipped platform for the years to come”.
How Do We Sustain Immunisation?
By the end of 2021, experts estimate that we need approximately 10 billion doses of vaccines—many of which will be shipped to areas of the world, such as India, South Africa, and Brazil, that lack significant infrastructure. This is perhaps the greatest divide between countries that have rolled out successful immunisation programmes and those that have not. As Busch noted, “the UAE’s significant investments in creating robust air, sea, and land infrastructure facilitated logistics and vaccine distribution, helping us keep supply chains resilient”.
Neither is the novel coronavirus a one-time affair. If predictions hold, COVID will be similar to seasonal colds or the flu: here to stay. When fall comes around each year, governments will need to vaccinate the world as quickly as possible to ensure long-term immunisation against the virus. This time, logistics companies must be better prepared.
Yet global immunisation, year after year, is no small order. To keep reinfection rates low and slow the spread of COVID, governments will likely need 7-9 billion annual doses of the vaccine to meet that mark. And if DHL’s white paper is any judge of success, multi-sector supply chain partnerships will set the gold standard.