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DHL Announces Investment of Euro 50 million to Strengthen Its Supply Chain Business in Thailand

Monday, November 19, 2012 3:00 AM


- New facilities and new transport fleet to be launched

- Additional 2,000 jobs to be created by 2015

BANGKOK, Nov. 19, 2012 /PRNewswire/ -- DHL Supply Chain, the global market leader for contract logistics solutions, today announced an investment of Euro 50 million to further strengthen its market-leading position in Thailand. Over the next two and a half years, the company plans to build new facilities, expand its fleet of trucks, invest in new technology, intensify its training and talent development programs and create an additional 2,000 jobs.

(Logo: http://www.prnasia.com/sa/2010/09/02/20100902467742-l.jpg )

Paul Graham, DHL Supply Chain CEO for Asia Pacific, said, "Thailand is one of the fastest growing markets for our business with our footprint growing 30 percent in the last year. We want to be ready to grow with our customers as they expand within the market."

"To achieve this, we are launching several projects in 2013, including an Automotive campus on the eastern seaboard to leverage our automotive operations, a new warehouse facility at Bangna to support our retail sector, an expansion of our truck fleet and a new transport management system to create greater efficiencies in our distribution capabilities. We will also create 2,000 new positions on top of our existing headcount of 9,500 to support these enhancements to our in-country network," added Oscar De Bok, CEO South and South East Asia.

New facilities in 2013

"DHL Supply Chain will launch its second (Note 1) Automotive campus in 2013 to help customers meet the new demands of the Thai automotive industry. Thailand is now the world's top tenth in terms of auto production as a result of a full recovery of the industry from last year's floods and the production increases by both assemblers and parts-makers. Demand has also been generated by the First Car Buyer Program (Note 2)," added Kevin Burrell, DHL Supply Chain's new Managing Director for Thailand.

Next year DHL Supply Chain will also launch a new facility at Bangna to support its continual growth in the retail, fashion, and consumer sectors. The new facility consolidates the company's key strategic accounts, offering customers an optimized operating environment and greater efficiencies in the face of growing business demands. The facility will also be retrofitted with energy efficient specifications to achieve DHL's GoGreen (Note 3) aspirations, as well as stringent security features.

Mr. Burrell continued, "According to recent reports, The Thai Retailers Association (TRA) expects the retail industry to grow by 12 percent this year, the highest in three years and exceeding its earlier projection of 8 percent (Note 4). We are also expecting healthy retail growth, and the new facility will help us innovate and develop better and more efficient supply chain processes. Our customer's pain points are our pain points. We constantly invest in new processes or technologies to help customers run their businesses more efficiently in an ever increasing competitive environment."

"DHL Supply Chain's retail operations boast world class automation and warehouse management systems, making them amongst the most productive and efficient facilities in our Asia Pacific business," added Mr. De Bok. "We have been able to leverage the retail expertise we have developed here in Thailand in other markets by replicating the best practises from our key retail sites."

Investments in transportation

In showing its dedication to the country's retail sector growth, DHL Supply Chain will expand its transportation fleet. The fleet, which currently consists of over 1,000 vehicles, is capable of averaging more than 1,200 trips per day and covering over 11 million kilometers every month. Over the next few years, the company will continue to invest in its fleet and increase subcontractor partnerships to support growth in this dynamic sector.

Investments in this area also include the training of drivers. Before taking to the road, all new drivers undergo an intensive training program that covers classroom and yard exercises, simulation activities and on the road driving practice. These on-the-road skills are constantly refreshed. All drivers graduate from the DHL Supply Chain Thailand Transport Driver Training School located at a distribution center in Bang Yai.

People development

Apart from the investment into its business operations, DHL Supply Chain Thailand is fully committed to continuing its people development initiatives. Thailand has pioneered a School of Excellence where world-class employee training programs covering major areas of its operations (Note 5) are developed for the whole Asia Pacific business.

Said Mr. Burrell, "We take considerable pride in training and career development opportunities for our staff. In Thailand, 4,000 employees have been trained in our Operations Simulations centers, and over 200 of our managers have completed our Executive Development Program run here in Bangkok in conjunction with Kasetsart University."

DHL Supply Chain will also invest further in creating value added supply chain services, specifically in the area of crisis management. Most recently, with experience gained from the floods in Thailand, and the Japan and New Zealand earthquakes, the School of Excellence has developed a program on "Business Continuity Management and Disaster Response".

DHL Supply Chain first began operations in Thailand in 1995. Today, it has a market leading position in the retail and consumer sector and is growing fast in the life sciences, automotive and technology sectors.

Notes:

1. DHL Supply Chain already has key automotive facilities in Rayong.

2. http://www.nationmultimedia.com/business/Thailand-set-for-record-auto-production-30190808.html

3. DPDHL has three Corporate Responsibility programs - GoGreen (protecting the environment), GoHelp (delivering help after natural disasters) and GoTeach (championing education).

4. http://www.bangkokpost.com/business/economics/304134/retailers-tout-rosy-12-growth-forecast

5. Warehouse, transport, and safety

- End -

DHL - The Logistics company for the world

DHL is the global market leader in the logistics industry and "The Logistics company for the world". DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and about 275,000 employees' worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting climate protection, disaster management and education.

DHL is part of Deutsche Post DHL. The Group generated revenue of 53 billion euros in 2011.

SOURCE DHL

(Source: PR Newswire )
(Source: Quotemedia)

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