Top three challenges for logistics in 2020
Sustainable and efficient transport
Although the logi...
Supply Chain Digital takes a look at the top three logistics challenges DPDHL predicts for 2020.
Sustainable and efficient transport
Although the logistics industry won’t be able to achieve global targets by itself, it is important that the industry leads the way when it comes to sustainability. It is a topic that is never likely to go away, therefore the use of environmental transportation should be within every 2020 and beyond business plan, in order to not only be ahead but actively involved in finding solutions too.
How is DPDHL staying ahead of sustainability?
Targets set to reduce all logistics related emissions to zero by 2050.
Piloting alternative drivetrains and fuels.
“Our sustainability goal is not just a vision, but a clear statement. In the future, we will give preference to transportation solutions that contribute to achieving our environmental goals,” comments Uwe Brinks, CEO DHL Freight.
Digitalisation = transparency
Something that is still behind in the logistics industry is transparency. However, digitalisation can help improve this within logistics companies, which in turn can help improve sustainability. For example increased transparency when it comes to loading capacities can avoid empty or inefficient journeys.
How is DPDHL using digitalisation?
Project launched called ‘Terminal for the Future’, which tests and implements solutions and technologies such as automated volume measurement, intelligent yard management and partially autonomous transfer vehicles.
“All these developments are based on a clear approach: we want to make life easier and more efficient for our customers and employees. Technology should support our employees in their everyday work, not replace them,” says Brinks.
E-commerce and online trading
When it comes to disruptors, e-commerce and online trading is changing global trade massively, alongside customer behaviour. It all comes back to transparency, logistics needs to keep up with developments in order to meet customer expectations.
How is DPDHL combating this challenge for its 3PL customers?
Developing a freight online booking tool and freight marketplace Saloodo!.
Developing an integrated connected supply chain solution for BMW, which enables BMW and its partners to manage potential problems along the supply chain and identify opportunities for optimisation.
Although the year ahead may look challenging for logistics, it is important to see the opportunities to develop and improve as a result.
For more information on all topics for Procurement, Supply Chain & Logistics - please take a look at the latest edition of Supply Chain Digital magazine.
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.