Company Description: DHL
covers a gamut of end-to-end supply chain solutions, through its four business
units namely, DHL Global Forwarding, DHL Supply Chain, DHL Express and Blue
Dart. All put together, DHL in India has
in excess of 16,000 strong workforce spread across 36,000 locations with 6.45
million square feet warehousing space. Having established in India a long time
ago, with the advantage of being an early entrant, India is one of the fastest
growing markets for DHL.
What is DHL’s marketshare in India
from the automotive related businesses, especially ancillaries, kits and parts
logistics?
DHL is amongst the largest players in the
global automotive market. DHL Global Forwarding commands a major market share
in the Indian automotive and auto-ancillary segments. The automotive market contributes a sizable
share towards DHL Global Forwarding’s overall revenue.
What is the share of growth seen by
DHL region wise?
DHL Global Forwarding has a significant
share of the automotive market in India.
While we are well entrenched in the west, we are aggressively focused on
further increasing our market share in other parts of the country, particularly
in the south. Developing auto markets are under the spotlight as traditional
centres of production and consumption are shifting to these developing markets
heightened by a number of factors.
Coupled with environmental pressures, government interventions and fuel
spikes, change is in the air.
DHL
Global Forwarding will continue to focus on pan India growth to expand its
automotive base in the country. In
India, much of the growth is being driven by the country’s expansion as a small
car hub, increased sourcing of auto components, expansion of the domestic
dealer network, development of higher volume production plants and an
increasingly global presence.
How does automotive as a vertical
fare for DHL against other verticals like Life Sciences, IT etc.?
The innovative logistics solutions we
provide support DHL’s strategic orientation to key global industry sectors,
such as automotive, technology, life sciences/healthcare or energy. DHL pools
sector-specific expertise across all business areas and has, for instance,
established special Automotive Competence Centres for the automobile industry
worldwide. In these centres, DHL employees cater exclusively to the logistics
needs of car manufacturers and their suppliers.
What is the year-on-year growth for
DHL in the auto segment in India?
As the Indian automotive sector develops,
so too has the contribution of this vertical to our bottom line increased over
the years and remains bullish for the future.
As an industry, automotive sector has always been advanced when it comes
to logistics. New cost and competitive pressures and environmental issues have
thrown up the need for more modular supply chain solutions created with global
partners who can adopt local approaches and expertise. Nowhere is this need
greater than in emerging markets challenged by the lack of infrastructure,
expertise and processes.
Can you name a couple of auto brands
you cater to globally out of India?
Globally, DHL is the leading logistics
service provider for the automotive industry, serving almost all vehicle
manufacturers and suppliers worldwide. In India, we cater to most of the
leading MNC and principal local automotive brands.
Can you talk about the network DHL
has across the country. Out of this, what will be the penetration level, down
south?
DHL Global Forwarding has dedicated
automotive teams that provide strategic consulting for a variety of customers –
from international players seeking to expand their presence in the domestic
market, to indigenous companies aiming to go global, servicing more than 50,000
customers across India.
What
is more, our strong customer offering in India covers the entire spectrum of
end-to-end supply chain solutions, through our four business units, namely: DHL
Global Forwarding, DHL Supply Chain, DHL Express and Blue Dart. Collectively, DHL in India has over 16,000
employees spread across 36,000 locations with 6.45 million square feet
warehousing space. Thus we are in a position to work closely with customers and
ensure delivery of scalable and sustainable solutions, at any location in the
country.
What are the expansion plans of DHL?
DHL will continue to invest in innovative
and cost-effective solutions to cater to the needs of our customers. With
offices across the entire country, manned by our qualified employees, the
company is strategically poised to enhance servicing capabilities, make
significant investments to further consolidate its leadership position and add
considerable value to its service offering.
We
recognise that the several opportunities and challenges in India are resulting
in longer, more complex supply chains requiring increased control. DHL emphasises the need to maximise on
economies of scale, re-engineer manufacturing productivity and boost logistics
efficiency for the growth of the automotive market.
What are the destinations DHL
focuses on shipping auto parts globally?
DHL’s international network links more than
220 countries and territories worldwide which include the key global automotive
markets, such as Europe, the US, Latin America and Asia Pacific. Within India, DHL has dedicated
automotive teams that provide strategic consulting for a variety of customers.
Apart from the international players seeking to expand their presence in both
the domestic market as well as companies aiming to go global, DHL services a
large customer base in India.
Any other plans for 2014?
For global vehicle producers – and growing
local brands – the challenges of meeting emerging market demand, dealing with
local requirements and increasing
environmental imperatives will be just as complex as incorporating suppliers,
assemblers and distributors from around the world, including emerging markets,
into their value chain. Combined, they
create a tough challenge but those willing to take this up will enjoy sustained
success and an unbeatable competitive advantage in these fast growing markets.
Without doubt, the winners will be those who invest in sustainable supply chain
management solutions.
Given
the current economic condition across the globe, the most important aspect that
customers seek before investing with a supply chain partner is their ability to
adapt, collaborate, innovate and deliver value thus positively affecting their
ROI on spends related to supply chain and logistics. Having worked with leading
western and eastern automakers in every region and at every stage of the logistics
process, DHL has both a macro and micro view of the issues they face in top
emerging markets such as China and India.
With its local and global expertise and in-depth knowledge of both the
logistics and automotive markets, DHL has been delivering significant savings
to customers and will strive to continue with providing this advantage to them.