By 2025, the Deutsche Post DHL Group will have spent some €2 billion on digitalization under the Strategy 2025. The company estimates that investments in digital solutions will bring huge benefits.
Frank Appel, CEO of Deutsche Post DHL Group, announced this week Strategy 2025 under which the company will spend up to €2 billion on digitalization over the next six years. This sum is already included in the planned Opex and Capex spending. The digitalization investment is expected to lead to yearly run rate benefits of at least EUR 1.5 billion net.
„We need not reinvent ourselves, we will digitalize ourselves”, CEO Frank Appel. https://t.co/IRj1ZEq0jh #DPDHLstrategy2025 pic.twitter.com/ixuASOOggx
— DPDHL News (@DeutschePostDHL) October 1, 2019
„We are convinced that future growth will come from a consistent focus on our profitable core logistics businesses – and digitalization will become the greatest lever,” said Frank Appel, CEO of Deutsche Post DHL Group, during the presentation of „Strategy 2025” in Frankfurt am Main. “We need not reinvent ourselves. We will digitalize ourselves,” he added.
Automated processes are expected to increase productivity and data analysis to optimize routes. In addition, the Group wants to rely more on robots. “Technology will improve our productivity,” said Frank Appel.
Ambitious goals
According to the new strategy, DP DHL’s EBIT should increase to at least EUR 5,3 billion by 2022. At the same time, the company strives to minimize the negative impact of its operations on the environment.
Strategy 2025 – Delivering excellence in a digital world. #DPDHLstrategy2025 https://t.co/hH8vlrfT5N pic.twitter.com/qYXf8ebGZl
— DPDHL News (@DeutschePostDHL) October 1, 2019
With trade disputes, labour shortages and economic slowdown, the targets are likely to be more difficult to achieve. According to Melanie Kreis, CFO, the times of strong economic growth are over, but thanks to the Strategy 2025 the company will maintain its profitability.
Digitalization is a must
The logistics giants understand that only with digitalization can they remain competitive. Digital solutions are now a market advantage and will soon become essential. Operators who opt for the digital business model will not only reduce operating costs, but will also offer added value to the customer, such as transparency in the supply chain.
Photo: DHL