DHL says outsourcing becoming a trend in GCC logistics
DHL Supply Chain increased its Middle East revenues by 18% year to date, attributing the growth to current market demands for large scale first time outsourcing of supply chains and the related operational efficiencies.
“The increased demand for the outsourcing of supply chains in the Middle East couldn’t have come at a better time,” said David Christmas, CEO of DHL Supply Chain Middle East, Russia and Turkey. “With the country economies under pressure, large organizations across the public and private sectors are looking to drive increased efficiencies and focus on their core business activities.”
“First time outsourcing is a strategic decision. If a CEO is looking to restructure their business, reduce costs and re-focus on their core activities, in order to accelerate and enable growth, this is an opportunity they should seriously consider. With an end to end supply chain, a fully digitalized and re-engineered service, it is more than just warehousing and transportation. We have been overwhelmed with feedback from CEO’s in the region, who have found that our outsourcing service has benefitted their business in many ways,” Christmas added.
While revenues are ever increasing DHL is also fully committed to putting safety first and foremost. This commitment has recently been demonstrated by DHL Supply Chains’ joint venture with Bahwan Cybertek in Oman who recently reached their 1 Year milestone of no lost time injuries.
Commenting on this milestone, Jeremy Haysom the Managing Director of Bahwan Exel LLC stated, “This is a great team achievement. We operate in a complex fourth party logistics environment managing multi nationals, small-medium enterprises, local community contractors and over 400 owner operators. This achievement shows the real benefit of the fourth party and lead logistics provider concepts, and how collectively this can shape the journey to Goal Zero”.
DHL Supply Chain Middle East has had a number of large scale agreements since the beginning of the fiscal year.
This includes an agreement with Etihad Airways Engineering, the largest commercial aircraft maintenance, repair and overhaul (MRO) services provider in the Middle East, who have signed a Letter of Intent for DHL Supply Chain to manage stores, local transport movements and associated supply chain planning at the Etihad Airways Engineering hub at Abu Dhabi International Airport.
Globally, Deutsche Post DHL Group increased revenue and operating profit significantly in the second quarter of 2017.
Group revenue increased by EUR 623 million to EUR 14.8 billion, with the international parcel and eCommerce business and the global Express business in particular driving this strong growth. With EBIT of EUR 841 million, Deutsche Post DHL Group recorded the strongest second quarter in its history, and the seventh consecutive quarter in which the company has posted an all-time quarterly high.