May 17, 2020

In Focus: DSV, world leaders in transportation and logistics

Logistics
Georgia Wilson
2 min
Founded in 1976, DSV began its operations in a small town in Denmark by 10 owner-operated hauliers.

Since its founding, DSV has transformed into a worl...

Founded in 1976, DSV began its operations in a small town in Denmark by 10 owner-operated hauliers. 

Since its founding, DSV has transformed into a world leading provider and manager of supply chain solutions within transportation and logistics around the world. Being a freight forwarder, DSV does not own or operate transportation equipment. The transportation of goods is conducted via its global network of partners and subcontractors. 

DSV’s operations are split into a total of three divisions which include, air and sea freight, road transportation and 3PL solutions.

Air freight

As part of its air freight services, DSV offers its customers daily worldwide departures, whether it’s airport-to-airport or door-to-door, for the delivery of commodities that need to arrive fast and on time. 

DSV air freight services include:

  • Full charter

  • Part charter

  • On-board courier

  • Consolidation

  • Back-to-back

  • DSV XPress

Sea freight 

Although one of the slowest forms of transportation, DSV boasts that if time is not a factor, then shipping is the perfect choice for optimising costs. DSV’s sea freight is also perfect for special types of goods that can not be transported by air due to size, weight or not being permitted on board.

DSV sea freight services include:

  • Full container load

  • Less than container load

  • Non-containerised load

  • Buyer's consolidation services

  • Break bulk 

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Road transportation 

Under its belt, DSV has a variety of trailer types to suit the specific transportation needs of its customers. DSV trailers come with installed GPS devices to keep an overview of the cargo’s location and to prevent theft. 

DSV trailer types:

  • Box trailers 

  • Curtain trailers

  • Mega trailers

  • Open trailers

  • Reefer trailers

  • Tarpaulin trailers

3PL solutions

As part of its 3PL solutions, DSV offers industry specific solutions for five key areas, automotive, consumer products, healthcare, high-tech and industrial.

“From the beginning, the story of DSV has been a story of entrepreneurs with great business acumen and the courage to embark on a journey of continued growth. The DSV values remain deeply embedded throughout our global organisation.”

DSV in facts and figures: 

Employees: 60,000

Locations: 80

Offices, terminals and warehouses: 1,400+

For more information on procurement, supply chain and logistics topics - please take a look at the latest edition of Supply Chain Digital magazine.

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Jun 19, 2021

Driver shortages: Why the industry needs to be worried

Logistics
SCALA
supplychain
Brexit
Rob Wright, Executive Director...
4 min
Logistics professionals need urgent solutions to a shortage in drivers caused by a perfect storm of Brexit, COVID-19 and compounding economic factors

While driver shortages are a global problem, with a recent survey from the International Road Transport Union suggesting that driver shortages are expected to increase by 25% year-on-year across its 23 member countries, the issue has very much made itself felt for UK businesses in recent weeks. 

A perfect storm of factors, which many within the industry have been wary of, and warning about, for months, have led to a situation wherein businesses are suddenly facing significant difficulties around transporting goods to shelves on time, as well as inflated operating costs for doing so. 

What’s more, the public may also see price rises as a result due to demand outmatching supply for certain product lines, which in turn brings with it the risk of customer dissatisfaction and a hit to brand and stakeholder reputation. Given that this price inflation has been speculated to hit in October, when the extended grace period on Brexit customs checks comes to an end, the worst may be yet to come.

"Steps must be taken to make a career in the industry a more attractive proposition for younger drivers, which will require a joint effort from government, industry bodies, and the sector as a whole"


That said, we have already been hearing reports of service interruption due to lack of driver availability, meaning that volumes aren’t being transported, or delivered, to required schedules and lead times. A real-world example of this occurred on the weekend of 4-6 June with convenience retailer Nisa, with deliveries to Nisa outlets across the UK affected by driver shortages to its logistics provider DHL.

But where has this skills shortage stemmed from? 

Supply is the primary issue. Specifically, the number of available EU drivers has decreased by up to 15,000 drivers due to Brexit alone, and this has been further exacerbated by drivers returning to their home country during the COVID-19 pandemic, as well as changes to foreign exchange rates making UK a less desirable place to live and work. This, alongside the recent need to manage IR35 tax changes, has also led to significant inflation in driver and transport costs.

COVID-19 complications have also meant that there have been no HGV driver tests over the past year, meaning the expected 6,000-7,000 new drivers over the past year have not appeared. With the return of the hospitality sector we understand that this is a significant challenge with, for instance, order delivery lead times being extended.

It is little surprise, therefore, that the Road Haulage Association (RHA) earlier this month became the latest in a long line of industry spokespeople to write to the government about the driver shortage for trucks. The letter echoed the view held by much of the industry, that the cause of this issue is both multi-faceted and, at least in some aspects, long-standing. 

So, many in the industry are in agreement as to the driving factors behind this crisis. But what can be done? 

Simply enough, outside of businesses completely reorganising their supply chain network, external support is needed. In the short-term, the government should consider providing the industry with financial aid, and this can also be supported more widely with legislative change. 

Specifically, immigration policy could be updated to place drivers on the shortage occupations list, which would go some way towards easing the burden created by foreign drivers returning to their home countries. Looking elsewhere, government should also look for ways to increase the availability of HGV driver tests after the blockage created by the coronavirus lockdowns.

Looking more long-term, steps must be taken to make a career in the industry a more attractive proposition for younger drivers, which will require a joint effort from government, industry bodies, and the sector as a whole. As it stands, multiple sources suggest that the average age of truck drivers in the UK is 48, with only one in every hundred drivers under the age of 25. We must therefore do more to increase the talent pipeline coming into the industry if we are to offset more significant skills shortages further down the line. 

On the back of a turbulent year for the supply chain industry, it has become increasingly clear that the long-foretold shortage of drivers is now having a tangible and, in places, crippling effect on supply chains. 

Drivers, and the wider supply chain industry, have rightly been recognised for the seismic role they played in keeping the nation moving and fed over the past year under unprecedented strain. If this level of service is to continue, we must now see Government answer calls to provide the support the sector needs, and work hand-in-hand with the industry to find a solution. If we do not see concrete action to this effect soon, we are likely to be in for a turbulent few months. 
 

Rob Wright is executive director at SCALA, a leading provider of management services for the supply chain and logistics sector

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