Deutsche Post DHL Group is investing in innovation to play a leading role in the global growth of the logistics industry and to shape a sustainable future. A recent trend report revealed huge growth potential in more efficient and transparent supply chains – it is estimated that the Internet of Things alone will bring a financial injection of USD 1.9 trillion, stimulating supply chain and logistics activities by 2020. This direction of development is promoted by the DHL Innovation Centers in Germany, which opened their doors in a revamped form in May. Additionally, later this year, in cooperation with the Singapore Economic Development Board, a new Asia-Pacific Innovation Center will be opened in Singapore.
– I believe that while capital and experience are undoubtedly important, innovative ideas will drive our future. At Deutsche Post DHL Group, customer-centric innovation is the foundation of our two core objectives: One is to play a pioneering role in spreading global logistics growth, which is at the heart of our planet’s sustainable development. The second is to remain a logistics leader through the innovative products and services our customers need most – whether it is fulfilling e-commerce deliveries, designing a global supply chain, or transporting temperature-sensitive medicines. To achieve this, we will continue to look far into the future, where our goal will be to constantly strive to transform our innovations into market solutions that allow us to ensure greater success for our customers – said Frank Appel, CEO of Deutsche Post Group, during the opening ceremony.
The new concept of the DHL Innovation Center in Troisdorf, near Bonn, was developed to foster even greater collaboration with customers, experts, and academics from many fields. Together with over 50 DHL experts, this network of partners creates pioneering sustainable development solutions to keep the world of trade moving by creating innovative services and solutions. Since its first opening in 2007, the Center has helped shape innovation in logistics in collaboration with well-known brands from around the world, as well as leading global research and development institutions. In Singapore, the new Innovation Center will be located in the newly built USD 100 million Regional Center for Advanced Supply Chain Services.
– By being a leader in innovation, we have become a market leader. The goal of the DHL Innovation Centers is to maintain this lead by developing highly innovative products and services based on technological, social, and logistics trends for the future. The DHL Trend Research team constantly analyzes and identifies new facts and their potential impact on the logistics industry along the entire value chain. Together with the improvements introduced in the Innovation Centers, this will allow us to offer new opportunities for our customers and remain a leader in our industry. As a trade facilitator, innovation in logistics is very important, as it has the potential to transform economic sectors around the world – said Bill Meahl, Chief Commercial Officer at DHL.
DHL Innovation Center – new features
The Innovation Center in Troisdorf has been completely redesigned around the idea of developing DHL innovations in cooperation with customers and a network of partner industrial and research institutions. In addition to space for meetings and workshops, customers can take advantage of individual guided tours of the showroom. As the hub and laboratory for the DHL Trend Research team, this facility plays a key role for the Group in maintaining the company’s position as the world’s most innovative company in the logistics industry.
The building consists of several areas. In the modernly arranged central point, a Formula E car is currently on display, representing DHL’s commitment to e-mobility, as well as sustainable logistics and automotive solutions. Visions, trends, and solutions for today, tomorrow, and the day after tomorrow converge at the central point. The exhibition will change regularly, depending on current social and business trends. The central point also acts as a link to other exhibitions such as the Vision Suite, where visitors can explore various scenarios of what the world might look like in 2050. The scenarios are based on the DHL Logistics 2050 analysis and megatrends such as globalization, urbanization, climate change, and demographic shifts.
Value chain trend research – a customer-centric approach
The DHL Trend Research team is dedicated to researching and leveraging trends in the logistics industry. Researchers identify the most important changes in the logistics sector that have emerged over the year and describe them in the DHL Logistics Trend Radar. A dedicated “Trend Research Value Chain” outlines a structured approach to sustainable and innovative business solutions: Starting from identifying the right topics in the Logistics Trend Radar, through more detailed Trend Reports on specific topics, which will then translate into Concepts, as well as physical exhibitions at the Innovation Center. At the end of this process, these products and solutions will be fully handed over to the appropriate organizational unit for implementation into operations or business processes.
Recently, the DHL Supply Chain division, together with its partner Ricoh, successfully tested smart glasses and augmented reality software in the Netherlands – as a result, the warehouse picking process was improved by 25%. Currently, DHL is exploring the use of smart accessories in additional areas and in cooperation with other partners. Another promising innovation was described in the “Autonomous Vehicles in Logistics” trend report. This report highlights the key elements and significant potential of autonomous technologies in the logistics sector through various applications of best practices from different economic sectors. This report also examines specific examples of autonomous vehicles throughout the logistics value chain, from autonomous transport and assisted warehouse picking to final delivery to the recipient.
Internet of Things and e-commerce – Innovation is the engine of the economy
The latest trend report released in collaboration with Cisco Systems, focusing on the Internet of Things, estimates that by 2020 there will be approximately 50 billion devices connected to the Internet compared to 15 billion today, which will result in game-changing shifts – from creating more delivery options for customers to more efficient warehouse operations and goods transport. According to an economic analysis conducted by Cisco, the Internet of Things alone will generate USD 8 trillion in value worldwide over the next decade, of which approximately USD 1.9 trillion will fuel supply chain and logistics activities.
Over the next ten years, online retail will gain more importance than previously predicted – not only in developed countries but also in emerging markets. The share of e-commerce in total retail trade in developed countries is expected to reach 40% by 2025, and 30% in emerging markets, with logistics playing a significant role in all of this. This was one of the key conclusions of Deutsche Post in the global E-Tailing study. In 2013, the global distance selling market reached a value of €616 billion, but it is estimated to grow by 10.7% annually until 2018. Therefore, Deutsche Post DHL Group is also focusing its efforts on developing solutions that support the growing demand of companies and individual consumers for online shopping. Applications for simplified and secure access to our offers or innovations in customer delivery services are part of this approach.
– Experience has taught us that innovation must always be customer-oriented. A company innovates best by: listening to customer needs, proactively sharing best practices and information about solutions across different sectors and industries, and collaborating. The DHL Innovation Center strives to be a creative environment where great ideas turn into real solutions, are developed and tested, and finally reach the market – stated Matthias Heutger, Senior Vice President of Strategy, Marketing and Development, DHL Customer Solutions & Innovation.
Industry pioneer through a wide range of innovations
Deutsche Post DHL Group has an impressive range of innovations. The Express division was the first company in 1969 to offer a regular international delivery network with a defined delivery time. Recently, the DHL Thermonet product was introduced, allowing for seamless temperature control and tracking throughout the supply chain 24/7 – which is particularly important for customers in the pharmaceutical and medical sectors. Additional SmartSensor solutions and the Resilience360 application offer extra benefits if customers from high-value goods industries are looking for secure transport. At the same time, responding to environmental issues, urban congestion, and challenges related to last-mile delivery, Deutsche Post DHL Group created Packstation, a network of 2,750 parcel lockers currently available in over 1,600 German towns; introduced StreetScooter, the company’s electric vehicle with zero carbon emissions – over 140 of these cars are already traveling through Bonn, making the city a model for low-emission parcel deliveries; and also introduced Parcelcopter, recently tested as part of the first regular drone delivery service to the island of Juist in the North Sea.