DHL Supply Chain

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DHL Supply Chain is a division of

In 2016, DHL Supply Chain was primarily competing in strategic life sciences and healthcare, automotive and technology sectors of the market. The automotive sector, with its Lead Logistics Provider (LLP) service, has been shifting to China, India and Mexico as those countries become significant vehicle and parts manufacturers.[4] In Canadian and USA markets DHL Supply Chain operated under the name Exel until January 2016.

In 2016, the DHL Supply Chain division's revenue decreased by 11.6% to €14.0 billion versus 2015, but operating profit improved by 27.4% to €572 million.^[2]

History

• 1969 –
  DHL founded by Adrian Dalsey, Larry Hillblom
  and Robert Lynn in San Francisco.
• 1971 – DHL expands its Express network. Expansion into the Far East and Pacific Rim.
• 1972 – Services introduced in Japan, Hong Kong, Singapore and Australia.
• 1974 – The first UK office is opened in London. Globally, DHL now has 3,052 customers and 314 staff.
• 1976–1978 – Expansion in three major regions as DHL launches in the Middle East, Latin America and Africa.
• 1977 – The first German DHL office is opened in Frankfurt.
• 1979 – DHL extends its services to delivering packages. Only document services had been available until now.
• 1983 – DHL is the first air express forwarder to serve Eastern European countries. An international distribution center (hub) is opened in Cincinnati, USA.
• 1985 – A
  shipments
  are handled each night.
• 1986 – DHL enters into a joint venture with the People's Republic of China and becomes the first express company active in China.
• 1990 – DHL enters into strategic alliances with
  Nissho Iwai
  .
• 1991 – DHL becomes the first international express company to restart service to Kuwait after the Gulf War.
• 1993 – DHL invests 60 million dollars in a new hub facility in Bahrain.
• 1998 – Deutsche Post becomes a shareholder in DHL.
• 2002 –
  Deutsche Post World Net becomes the major shareholder in DHL from 1 January. By the end of the year, the company owns 100 percent of the DHL shares.^[5]
• 2003 –
  packing materials
  and buildings begins.
• 2004/2005 – Directly after the
  natural disasters
  .
• 2005 –
  Deutsche Post World Net acquires Exel
  , a British logistics corporation, in December for 5.5 billion euros.
• 2007 – The DHL Innovation Center opens near Bonn.
• 2008 – DHL opens its new European air hub at Leipzig/Halle Airport in Germany.
• 2009 – The Group presents its Strategy 2015 and is renamed as
  Deutsche Post DHL.^[6]

DHL Supply Chain is incorporated in

In December 2005, Deutsche Post acquired the British logistics company Exel for 5.5 billion euros. At that time, approximately 111,000 employees worked for Exel in 135 countries.^[7] The company concluded the first half of 2005 with a 55 percent leap in profits to 172 million pounds (251 million euros).^[7]

In 2006 Deutsche Post took a majority stake in

In July 2011, DHL acquired Tag Worldwide, an international provider of marketing execution and production services.[9]

In 2017, DHL sold the combined Williams Lea Tag business to Advent International.^[10]

In May 2018, DHL Supply Chain strengthened its presence in Latin America by acquiring Colombian logistics company Suppla Group. At the time of the acquisition, Suppla employed over 4,500 employees in 25 cities of Colombia.^[11]

Regions and sectors

DHL Supply Chain is organized into six regions: North America, South America, APAC (Asia Pacific), Greater China, MLEMEA (Mainland Europe, Middle East, and Africa), and UK&I (United Kingdom and Ireland). The Exel brand was retained for North America (USA and Canada), with the headquarters for the region in Westerville, Ohio. In 2016, the Exel brand transitioned DHL Supply Chain for the North America region. DHL Supply Chain trades in six focus sectors: AEMCE (Automotive, Engineering, Manufacturing, Chemical and Energy) Consumer, Retail, Technology, Service Logistics, Life Sciences and Healthcare.

Consumer and retail

Consumer and Retail are two of DHL Supply Chain's largest sectors. Both of these offer major growth potential for the division, since DHL manages the

Technology

In the Technology sector, DHL Supply Chain's portfolio of offerings ranges from inbound-to-manufacturing services and warehouse and transport services to integrated packaging, returns management and technical services.

Life sciences and healthcare

In 2011, DHL Supply Chain acquired Eurodifarm, a specialist in the controlled-temperature distribution of

In England, DHL Supply Chain operated the NHS Supply Chain for the National Health Service until April 2019.^[12] It has a contract for patient transport services in North London and has been criticised for poor response times to patients wanting to book a service and for refusing disabled people permission to bring an escort. The Royal Free London NHS Foundation Trust oversees the call centre.^[13]

Automotive

The

Energy

The fast-growing Energy sector is another market in which the DHL divisions provide logistics for both the build and run phases of major projects.

Public Sector

In the UK, DHL Supply Chain first won the Prison Retail Service contract in 2008; in 2022 it was reported that the company had won the contract again and that it would run until at least 2025.^[14] The contract involves supplying prisoners with their weekly 'canteen' purchases of toiletries and groceries, as well as employing and training prisoners to work in prison workshops that deliver the service.^[14][15]

Products

In the Supply Chain business, DHL Supply Chain provides customers in many industry sectors with logistics services along the entire

Some of the key DHL Supply Chain products include: Lead Logistics Provider, Packaging Services, Integrated Logistics Procurement, Technical Services, Service Parts Logistics, e-Fulfillment, Airline Business.^[16]

Market position

DHL Supply Chain was the global market leader in contract logistics with a market share of 8.3% (2010). In this highly fragmented market, the top ten players account for only about 23% of the overall market, the size of which is estimated to be €147 billion. DHL Supply Chain is the regional market leader in the regions of North America, Europe and Asia Pacific and also has a very strong position in rapidly growing markets such as Brazil, India, China and Mexico.

Financial results

DHL Supply Chain, as the contract logistics business of