DHL Supply Chain announces investment of Euro 100 million to strengthen logistics infrastructure – a milestone outlay in India
New Multi-Client Sites to be set up in 8 cities • Augment current transport fleet with superior advanced technology • Additional 5 million square feet warehousing space being added to increase total footprint across India • Use of green technology in all facilities
DHL Supply Chain, the global market leader for contract logistics solutions, today announced an investment of Euro 100 million to further strengthen its logistics infrastructure in India. This will include development of 8 world class Multi-Client sites (MCS) across India and upgrading its current fleet with technologically advanced transportation vehicles to meet the growing customer demands from various sectors. The new MCS facilities will add a further 5 million square feet of warehousing space, and will be located at prime cities such as, Mumbai, Gurgaon, Delhi (NCR), Bengaluru, Nagpur, Chennai, Kolkata and Ahmedabad.
“In 2010 the Indian logistics market was at USD 82.1 billion, with a projected growth of 9% in 2011. With government investments in infrastructure on the rise coupled with streamlining of regulatory policies, we are enthusiastic about the fast paced growth in the logistics market,” said Paul Graham, Chief Executive Officer – Asia Pacific, DHL Supply Chain. “DHL is strongly committed to investing in markets of growing importance. Looking to 2015 and beyond, India, China and other emerging markets are expected to be the key drivers of growth. With these new warehouses and our continued investment in our people, we are taking another step in the right direction to pursue DHL’s global strategy and support Indian business development,” he added.
The 8 new MCS sites of DHL Supply Chain in India have been designed to enhance speed-to-market, with operational processes being optimized to improve efficiency and reduce costs. Built along DHL global standards, these MCS facilities are designed with best-in-class operational processes which include loading docks and dock levelers, RFID technology for barcode scanning and fully secured warehouses equipped with CCTV, electronic access controls, intruder alarms and traffic management systems. “By setting up world class infrastructure and improving our existing network of facilities in India, we will be in a strong position to meet the increasing logistics and warehousing needs of corporates in India, thus enabling us to effectively tap into this expanding market,” said Oscar de Bok, Chief Executive Officer – South and South East Asia, DHL Supply Chain.
Green Technology
The global environmental protection program GoGreen – run by DHL’s parent company Deutsche Post DHL – is also implemented across the MCS facilities: “All our sites will use green technology like LED lighting and wind assisted ventilation in line with the company’s commitment to improving the carbon efficiency of its own operations and those of its transportation subcontractors by 30 per cent by 2020, compared to 2007 levels’, said Vikas Anand, Chief Operating Officer – India, DHL Supply Chain.
Talent Acquisition
With a strategic sector focus on Retail, Automotive, Life Sciences & Healthcare, Technology and Consumer, DHL Supply Chain is offering differentiated solutions and improving cost efficiencies, with talent being the key enabler. With its ambitious expansion plans, by 2015, the company will have 10,000 employees servicing various facets of customer requirements. To meet the critical need of well trained, professional and skilled employees who will be in a position to fulfil the growing demand for higher levels of operational and quality compliance, DHL Supply Chain has introduced “Gurukul” training centres at various locations. These centres aim at developing the skills of blue collar workers by imparting a consistent and standardized training on several aspects of warehouse operations, which include the crucial subjects of Safety, Health and Environment. This training initiative imparts best practice knowledge to employees, thereby upscaling their skill sets, so that the company’s service offering is on par with its global standards. This structured training program will enhance their knowledge and competencies enabling them to deliver excellent quality and safe operations.
Transportation
Due to increased outsourcing, the 3PL market in India is growing at a faster pace than GDP, and will account for 13% of the total logistics market in 2015, from 6% in 2008. With Transportation forming a significant 72%3 of this market, DHL Supply Chain has been expanding its Transport branch network at a rapid pace, having recently opened 18 branches which provide dedicated full truck load services (FTL) across the country. This service, which was previously offered only to its warehousing customers, is now available for other customers as well and has received a tremendous response with a large number of new customers being added recently. The transport branch network covers all the major key business cities in the country and is equipped with a transport management system and specialized staff who bring DHL’s higher standards of reliability to a largely fragmented FTL market.
