Deutsche Post DHL Group has revealed its new group strategy that it hopes will help it achieve an increase in operating profit of at least €5.3bn (US$5.8bn) in 2022. The strategy includes four key areas of focus: globalization, e-commerce, digitization and sustainability.
‘Strategy 2025 – delivery excellence in a digital world’ builds on its previous Strategy 2020, which helped the company achieve growth from its core logistics businesses.
The strategy will see Deutsche Post DHL spend around €2bn (US$2.2bn) on digitization between now and 2025. According to the group, the digitization investment is expected to lead to yearly run rate benefits of at least €1.5bn (US$1.6bn) by 2025.
“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 digitization will become the greatest lever,” said Frank Appel, CEO of Deutsche Post DHL Group. “We need not reinvent ourselves. We will digitize ourselves.”
As part of the new strategy, Deutsche Post DHL will be comprehensively modernizing its IT systems, integrating new technologies, offering its employees targeted advanced training to enable them to use these technologies, and thus steadily improving its 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 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 the IoT, and then provide them to our divisions. This way we can leverage the strength of our group to push forward our digitization,” Appel added.
To find out more about the Strategy 2025, click here.