Digital Signage from IAdea Germany Saves Time for Logistics Professionals
Oct 27, 2020 at 7:00 AMAutoID Technologies in High Demand Even During Corona Times
Oct 27, 2020 at 10:00 PMDHL Express expects unprecedented shipment volumes for the upcoming peak shopping season. The ongoing globalization and digitalization are leading to a continuously growing number of online marketplaces and shopping apps, through which consumers can purchase products from around the world. As a result, cross-border trade has steadily increased in recent years.
(Bonn) – Cross-border trade has steadily increased in recent years. Furthermore, due to the uncertainties caused by the COVID-19 pandemic this year, consumers are shifting their shopping activities more than ever into the digital realm. This is especially true for the upcoming popular mega shopping days “Black Friday” and “Cyber Monday” as well as for the entire Christmas season. Consequently, DHL Express expects an all-time high in global online trade. After the e-commerce volume in the DHL Express network has already increased by about 35 percent during the current fiscal year, the shipment volumes in the upcoming peak shopping season are expected to exceed the previous year’s period by more than 50 percent.
Employee Efforts are “Outstanding”
“Megatrends such as globalization and digitalization have a tremendous impact on global trade,” explains John Pearson, CEO of DHL Express. “In recent decades, we have seen how globalization and increased trade have enhanced global choices and prosperity, reduced poverty, cultivated diversity, and enriched lives. DHL Express is committed to enabling global trade and providing even more intensive support and advice to our customers on the most important days of their annual business. We ensure that their products are delivered as quickly as possible and that Christmas gifts reach households around the world on time. We are proud of the strong commitment of our employees and couriers who fulfill our mission of connecting people and improving their lives worldwide. In times when the coronavirus affects both the economy and our private lives, their efforts in serving our customers are outstanding.
Precautions to Ensure Delivery Capability Despite COVID-19
DHL Express has implemented numerous precautions for its over 100,000 employees in more than 220 countries and territories. These include providing protective masks and disinfectants, as well as control mechanisms to ensure compliance with distancing rules. Additionally, the company has developed safe handover procedures that do not require customers to sign for receipt of their shipment. All of this ensures business continuity for DHL Express customers and thus global trade.
Consequences of COVID-19 Lead to Further Increases in Online Trade Volumes and an Earlier Start to the Actual Peak Season
Due to the strengthening trends of globalization and digitalization, it is not surprising that global e-commerce figures are rising. This fundamental trend has already been visible in recent years. However, due to the consequences of the COVID-19 pandemic, the shipment volume this year has grown significantly more than expected. Thanks to the global operations of DHL Express, the company is constantly able to monitor developments in various regions and countries around the world, as different regions have different holidays and thus peak seasons. The developments of the most important shopping days so far this year have shown an increase in online volumes of at least 35 percent.
Increasing Shift of Demand into the Digital Realm
“The COVID-19 crisis and its effects, such as lockdowns or adherence to distancing rules, have led to massive changes in the retail sector worldwide,” says Michiel Greeven, Executive Vice President Global Sales at DHL Express. “As a result, consumer shopping behavior has fundamentally changed and shifted more and more into the online world. From an e-commerce perspective, one could even say that due to COVID-19, we are already at the level of 2030 in 2020. Online shopping and shipping are seen as the new normal. Especially in today’s time of uncertainty, in addition to online marketplaces, many of the large brick-and-mortar department stores will also move their promotions online, where customers from around the world will take advantage of shopping opportunities instead of visiting physical stores. This will require an increasing and faster shipping capability.”
DHL Express is Prepared
Given such increasing volumes and the simultaneous global resurgence of COVID-19, the challenges for logistics service providers are enormous. In addition to the consistent implementation of all precautionary measures to protect employees and customers and thus ensure continuous cross-border trade, the expected shipment volumes mean significant efforts. To prepare, DHL Express has hired over 10,000 new employees worldwide and, thanks to its annual investments in infrastructure such as hubs and gateways, aircraft, vehicles, and state-of-the-art technology, the company has significantly expanded its processing capacities to handle the upcoming volumes.
“For many years, we have seen high demand from online retailers for our express services and thus strongly growing volumes in our global express network,” says Travis Cobb, Executive Vice President Global Network Operations and Aviation at DHL Express. “We invest about one billion euros annually to meet our customers’ needs and ship their goods in the shortest possible time – to all corners of the world. Thanks to the unique customer orientation of our employees and our state-of-the-art infrastructure, our growth is the result of the highest quality in customer service, and our network is prepared for the upcoming peak season. Even in times of a second global pandemic wave, we will ensure that our customers’ businesses continue to operate and thus secure global trade.”
Lack of Belly Capacity Reduces Air Freight Capacity
To manage the volumes of e-commerce shipping, as well as the currently very important protective and medical goods, a high additional number of cargo flights is necessary, as a large portion of passenger aircraft are still not in operation. To counteract this, DHL Express has significantly increased the number of its daily flights. This year alone, the company has put four new Boeing 777F freighters into operation, with two more to follow in the coming months. These six aircraft alone enable the company to conduct more than 3,000 additional intercontinental flights per year.
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