Humbaur focuses on climate-neutral parcel shipping and CO2 compensation
Oct 19, 2021 at 6:35 PM
On the “Logistics Day”, logistics shows what it moves
Oct 19, 2021 at 6:43 PM
After Hermes already transported record amounts during last year’s Christmas season, the logistics expert expects another increase in volumes this year. From October to December, around 137 million parcels and packages are anticipated. This is an increase of about 9 percent compared to the record quarter of 2020.
(Hamburg) “We are well prepared for the second Christmas season under pandemic conditions,” explains Olaf Schabirosky, CEO of Hermes Germany. “Thanks in no small part to our continuous developments in the digital sector and the sustainable optimization of the last mile, as well as our continuously modernized locations, we will contribute to ensuring that people are reliably supplied with their parcels and packages this year. To handle the record volumes, we have accordingly expanded our personnel, vehicle, and sorting capacities.”
About 9 Percent More Shipments than in the 2020 Christmas Season
After Hermes already transported record amounts during last year’s Christmas season, the logistics expert expects another increase in volumes this year. From October to December, around 137 million parcels and packages are anticipated. This is an increase of about 9 percent compared to the record quarter of 2020. A year ago, nearly twelve million shipments were delivered in the strongest calendar week 51 alone. Nevertheless, Hermes was able to convince with stable deliveries and keep its Christmas delivery promise. Over 99 percent of shipments reached their recipients in time for the holiday.
Additional Personnel and More Vehicles
To manage the high volume of packages, numerous additional workers and vehicles are being deployed. In the delivery and handling areas at logistics centers and depots, 3,500 additional workers will provide support. In total, up to 15,000 delivery personnel will be in action for Hermes during Christmas. Employment will be based on availability and duration of service, either with fixed-term contracts or through tariff-bound temporary employment agencies. Additionally, Hermes is expanding its vehicle fleet and increasing its transport capacities. Nationwide, around 3,900 additional vehicles are on the road daily for deliveries.
Digitalization Improves Efficiency and Relieves Delivery Personnel
In light of continuously increasing shipment volumes, digitally driven optimizations along the entire logistics chain, especially around the last meters of a package to the front door or parcel shop, are essential. They significantly help to cushion the rising volumes. Hermes is consistently advancing the digitalization of the delivery process, focusing not only on the best possible comfort for recipients but also on those who deliver the parcels and packages daily: the delivery personnel. Hermes is digitalizing processes at its locations to achieve higher standardization and better process efficiency. One goal is to minimize setup times in tour preparation for delivery personnel. To achieve this, Hermes relies on new digital tools, such as digitally supported tour planning or tour sorting. These tools are based on the latest technological platforms to ensure high service quality. Elsewhere, delivery tours are efficiently designed, and delivery personnel are supported in their daily work by digitally planned routes and multilingual handheld scanners with various applications. Olaf Schabirosky: “The digitalization of the last mile, as well as the processes before it, is key for us as a parcel service provider to manage steadily growing and highly fluctuating shipment volumes with consistently high delivery quality—especially against the backdrop of limited personnel resources. We continuously analyze optimization potentials and implement large and small tools into our regular operations.” Two examples of this are the digital notification card, which allows for modern recipient communication, and the digital granting of drop-off permissions for needs-based shipment reception.
Multifunctional Locations Even More Powerful
Through continuous investments in technical equipment and the realization of further expansion stages throughout the year, Hermes has optimally prepared its locations for the Christmas season. In numerous highly technological logistics centers, sorting capacities have been significantly increased. At the Hermes location in Berlin-Brandenburg alone, daily shipment processing has been increased by 30 percent. Additionally, optimized planning and control measures have been implemented. This mix allows Hermes to ensure quick redistribution and delivery even with significant additional volumes—such as during the Christmas season. In Ludwigsfelde, Brandenburg, the parcel service provider has integrated a new location into its network in time for the peak season, specializing in the unloading, sorting, and loading of so-called “bulky items,” which are shipments that cannot be processed through the sorting system of a logistics center due to their size and nature, thus requiring manual handling. In a record time of eight weeks, the new distribution center was prepared and finally put into operation. Over 100 employees will be able to handle up to 35,000 shipments daily in the future. This will create additional capacities for “normal-sized” packages and parcels at other Hermes logistics centers across Germany.
Further Reducing the CO2 Footprint
With increasing package volumes, the measures by which Hermes reduces its ecological footprint are also coming into focus. “For many years, we have been systematically working on climate protection and have strategically anchored this as a corporate goal. At our locations and in daily operations, the reduction of CO2 emissions is an essential component,” says Olaf Schabirosky. And with success: From 2006 to 2020, Hermes Germany was able to reduce CO2 emissions in parcel transport by 38 percent and for its locations by 57 percent—through concrete levers to avoid and reduce CO2 in its core processes. In particular, through the continuous electrification of the vehicle fleet, the extensive network of over 16,000 parcel shops for acceptance and drop-off points, digital services for parcel recipients aimed at achieving the most tailored delivery of shipments, and through the use and testing of alternative vehicle models in combination with micro-depots, Hermes is making the last mile increasingly sustainable. Highly efficient systems and the use of renewable energies at Hermes locations are another focus of climate protection measures. “We are increasingly relying on e-mobility and green electricity, a modern truck fleet, alternative delivery concepts, the expansion of our parcel shop network, and intelligent transport and tour software for high transport efficiency, avoiding unnecessary trips through high utilization and suitable services,” summarizes Olaf Schabirosky.
Precise Volume Planning and Peak Surcharge
To manage the challenging shipment volume, Hermes works hand in hand with retailers. This includes close coordination regarding expected volumes. In collaboration, forecasts have been refined for months. Based on this, corresponding additional capacities in the form of personnel, vehicles, and transport options can be planned early. This creates maximum flexibility within Hermes’ own organization, allowing for quick responses and ensuring consistently high delivery quality even with extreme volume fluctuations. However, capacity building comes with higher costs. Against this backdrop, Hermes is imposing a so-called peak surcharge, similar to previous years. The surcharge applies to business clients, while private packages remain surcharge-free.
Photo: © Hermes
