Logistics service giant Deutsche Post DHL Group (DP DHL) has confirmed its group EBIT guidance of more than EUR5 billion for 2020 as it presented its new group strategy that underscores its comprehensive and accelerated digitalization.
The group on October 1 presented “Strategy 2025 – Delivering excellence in a digital world,” as it looks to continue its successful growth trajectory beyond “Strategy 2020.”
“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 digitalization will become the greatest lever,” said Frank Appel, group CEO, during the presentation of “Strategy 2025” in Frankfurt am Main.
DP DHL said significant progress was made with “Strategy 2020″ such that the group now has the most comprehensive and resilient portfolio in logistics. The company added that it will be focusing even more consistently on harnessing the sustained potential for profitable long-term growth contained in its core logistics businesses.
“Strategy 2025” is the group’s answer to four key future trends—globalization, digitalization, sustainability and e-commerce—as the company steps up its ongoing digital transformation in all business divisions.
Till 2025, the group will be spending around EUR2 billion on digitalization, it said. “The digitalization investment is expected to lead to yearly run rate benefits of at least EUR 1.5 billion by 2025.”
The group will be comprehensively modernizing its IT systems, integrating new technologies, and offering its employees targeted advanced training to steadily improve company services, processes and standards between now and 2025.
Efficiency will be improved by greater automation and improved transaction processes, for example through warehouse automation and robotics programs. Data analytics will be widely applied for example to foster routing optimization through advanced algorithms, operational volume prediction and with this optimized resource planning.
“Moving forward, we will bundle our technological capabilities as a Group in global Centers of Excellence. Here we will centrally develop key technologies like Internet of Things, IoT, and then provide them to our divisions. This way we can leverage the strength of our Group to push forward our digitalization,” Appel said.
Financial targets for 2022 were also introduced, with group EBIT expected to climb to at least EUR5.3 billion between 2020 and 2022.
