DHL Supply Chain, the contract logistics specialist within Deutsche Post DHL Group, has increased its Middle East revenues by 18% year to date. This increase is mainly attributed to current market demands for large scale first time outsourcing of supply chains and the related operational efficiencies, a growing trend in the Middle East.
Commenting on the announcement, David Christmas, CEO of DHL Supply Chain Middle East, Russia and Turkey, said: The increased demand for the outsourcing of supply chains in the Middle East couldnt have come at a better time. With the country economies under pressure, large organizations across the public and private sectors are looking to drive increased efficiencies and focus on their core business activities.
Christmas added: First time outsourcing is a strategic decision. If a CEO is looking to restructure their business, reduce costs and re-focus on their core activities, in order to accelerate and enable growth, this is an opportunity they should seriously consider. With an end to end supply chain, a fully digitalized and re-engineered service, it is more than just warehousing and transportation. We have been overwhelmed with feedback from CEOs in the region, who have found that our outsourcing service has benefitted their business in many ways.
DHL Supply Chains also announced a joint venture with Bahwan CyberTek in Oman. The latter recently reached their one year milestone of no lost time injuries.
Jeremy Haysom, the managing director of Bahwan Exel (the joint venture between CyberTek and DHL) commented on the feat: This is a great team achievement. We operate in a complex fourth party logistics environment, managing multi nationals, small-medium enterprises, local community contractors, and over 400 owner operators. This achievement shows the real benefit of the fourth party and lead logistics provider concepts, and how collectively this can shape the journey to goal zero.
DHL Supply Chain Middle East has had a number of large scale agreements since the beginning of the fiscal year. This included an agreement with Etihad Airways Engineering to manage stores, local transport movements, and associated supply chain planning at the latters hub at Abu Dhabi International Airport.
Globally, Deutsche Post DHL Group saw increased revenue and operating profit in the second quarter of 2017. Group revenue increased by 623mn to 14.8bn, with the international parcel and e-commerce business, and the global express business in particular driving this strong growth. With earnings before interest and taxes (EBIT) of 841mn, the group recorded the strongest second quarter in its history, and the seventh consecutive quarter in which the company has posted an all-time quarterly high.