In Focus: Logistics in 2019
With the logistics industry as competitive as ever, Supply Chain Digital looks at what three of the leading companies are doing to maintain a competitive advantage.
DHL
Having unveiled a new mega parcel centre in Bochum, Germany, DHL has shown it means business by launching one of the most efficient parcel facilities in Europe. With a sorting capacity of up to 50,000 shipments an hour, the new facility will create 600 jobs in the region. The news showcases DHL’s intent and follows the launch of its Obertshausen parcel centre near Frankfurt in 2016, which became the biggest DHL facility in Germany. Operating with “Strategy 2025” in mind, DHL is focused on harnessing sustained potential for profitable long-term growth. “Deutsche Post DHL Group has never been in better shape. We are convinced that future growth will come from a consistent focus on our profitable core logistics businesses – and digitalisation will become the greatest lever,” commented Frank Appel, CEO of Deutsche Post DHL Group. “We need not reinvent ourselves. We will digitalise ourselves.”
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FedEx
The company has been trialling drone technology and completed a commercial residential delivery in Christiansburg, Virginia, in collaboration with Wing Aviation in October 2019. FedEx operates a diverse range of solutions which include; FedEx Express, FedEx Ground, FedEx Freight, FedEx Services, FedEx Logistics and FedEx Office. At the end of June 2019, FedEx Express chose not to extend its domestic contract with Amazon and now focuses on serving the broader e-commerce market. While in April 2019, FedEx Office unveiled its 2,000th retail location as it accelerates its ever-expanding footprint. “Our 2,000 stores represent an unmatched nationwide network for both shipping and printing,” said Brian Philips, CEO and president of FedEx Office. “We’re continually investing in new ways to make e-commerce easy for customers and retailers alike. We also continue to enhance our network’s printing capabilities, which include advanced color management technology that ensures the accuracy and consistency of materials printed at any location nationwide.”
UPS
UPS has experienced a busy few months. The company introduced a new flat rate shipping option earlier in November in a bid to offer its customers a simpler solution. The new shipping option, UPS Simple Rate, will help small and medium-sized businesses and will enable SMBs to ship by UPS 2nd Day, UPS 3 Day Select and UPS Ground services to any US location for a flat rate. “UPS responds to our customers’ need for more convenience, choice and control,” said Kevin Warren, chief marketing officer at UPS. “Simple Rate helps small businesses take the guesswork out of shipping by providing simple, fast and transparent flat rates nationwide with guaranteed on-time delivery and no special packaging required.” UPS is also experimenting with drone technology, with its UPS Flight Forward subsidiary receiving its first full Part 135 Standard certification from the Federal Aviation Administration (FFA) to operate a drone airline.
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