Study by Deutsche Post DHL: The key trends in logistics

Status: 26.10.2022 8:53 a.m

Deutsche Post DHL is researching the logistics of the future in special innovation centers. Now the group has presented new trends. The current wave of complaints does not solve that.

Decarbonization, robotics, big data, diversification of the supply chain and alternative energy solutions: Deutsche Post DHL believes that these future trends will change logistics significantly over the next ten years. This is the result of this year’s “DHL Logistics Trend Radar”, which is based on the exchange with customers, research institutes, technology companies and start-ups, as the group announced.

Robust supply chains, sustainability and automation

“The events of the past two years have highlighted the importance of robust supply chains and functioning logistics,” said Katja Busch, DHL Chief Commercial Officer and Head of DHL Customer Solutions and Innovation. 76 percent of the companies surveyed want to broaden their supplier base in future and expand their sales networks. The analysis of large amounts of data is also crucial.

In addition, the topic of ecological sustainability is also becoming increasingly important in logistics. For example, the companies are currently examining the possibility of switching to an electric fleet. According to Deutsche Post DHL, to meet growing consumer demand, logistics companies must also address productivity-enhancing automation and efficiency technologies. Mobile robots for indoor areas as well as stationary robots that support the skilled workers on site are necessary to keep up with the demand.

Most recently, the German logisticians had massive difficulties with deliveries. Due to staff shortages, not all deliveries ended up in consumers’ mailboxes – or much later. Because some letters arrived late or not at all, more and more disgruntled citizens have turned to the Federal Network Agency in recent months.

Federal Network Agency boss calls for more sanction options

According to the regulatory authority, 11,500 complaints about postal and parcel service providers were received from July to September alone. In most cases, it was about the delivery of letters by Deutsche Post. The three-month value was higher than the total number of all complaints in the first half of the year (8900). If you add up all the complaints from the first three quarters, it is already a third more than in the whole of the previous year (15,100).

Because of the increasing numbers, Federal Network Agency boss Klaus Müller has now called for a sharper sword for his authority. “We are receiving an unusually large number of complaints at the moment,” said the network agency president of the dpa. “We urge a speedy improvement in the situation.” However, the legal options are limited. “Better legal equipment with sanction options would help us to deal with grievances more effectively.”

In the event of serious deficiencies, the Federal Network Agency initiates what is known as an event test. In this case, Swiss Post is asked to remedy the defects quickly, to which the company must respond. However, the regulatory authority cannot do more. In Müller’s view, improved information and reporting obligations would help in the event of temporary deficiencies so that the Post would become better. The authority could then impose penalties or fines if necessary. The required changes could be decided in the forthcoming postal law reform.

Post refers to staff shortages

The Post justifies the problems in recent months with a high level of sick leave in pandemic times and with the tight labor market. Due to the very high number of infections, employees in some facilities were “several” absent, said Thomas Schneider, operations manager of the postal and parcel business in Germany, recently to the “Bild am Sonntag”. In addition, it is “more difficult to find good people”.

A company spokeswoman said that “everything is currently being done to find more employees and to compensate for high losses due to Corona and thus deliver the usual good quality”. “Any letter that arrives late is one too many, and we apologize to our customers for that.” Overall, more than 80 percent of all letters are still delivered on the next working day and more than 95 percent after two days, thus fulfilling the legal standard. “Sanctions don’t help us in this challenging situation.”

In the meantime, Dietmar Bartsch, leader of the Left faction, has even called for the Post to be renationalized in view of the wave of complaints. “Deutsche Post belongs in public hands,” said the politician to the editorial network Germany (RND). The federal government should at least become the majority owner of the Post again in order to be able to determine the course of the company. The federal government currently holds a fifth of Post’s share capital via the KfW development bank. “Corporate profits and customer service are becoming increasingly divergent,” said Bartsch. “Some things have gotten worse and a lot more expensive at Swiss Post for years, while profits are exploding at the same time.”

Post raises forecast and expects strong Christmas business

In fact, despite the looming recession, the DAX company expects more profits than before this year. Thanks to good business in the summer, the management will raise its forecast when the interim balance sheet is presented on November 8, according to the group’s headquarters in Bonn last week. So far, CEO Frank Appel has been targeting an operating result (EBIT) of between 7.6 and 8.4 billion euros for 2022. According to preliminary figures, Swiss Post achieved an operating result of EUR 2.04 billion in the third quarter, around 15 percent more than a year earlier.

At the same time, Deutsche Post DHL is urgently looking for staff. According to the company, more than 3,000 new delivery staff have been hired in the past four weeks. With a view to the pre-Christmas period, however, we are still looking for reinforcements. Because in the upcoming Christmas business, the group assumes that the masses of parcels will be similar to those of last year.

The group announced last week that up to eleven million shipments are expected on individual peak days before Christmas Eve. That is the same maximum value as at the end of 2021. In order to cope with the extra Christmas crowds, Swiss Post wants to bring more than 10,000 temporary workers on board for a limited period, as in previous years. The Christmas business is the most important time for the parcel industry.

With information from Till Bücker, tagesschau.de.

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