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23 May 2012 12:29PM

DHL invests in outsourced service logistics sector

01 Jun 10 ,  eyefortransport
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DHL is focusing on increasing its share of the €3 billion outsourced service logistics market in the Asia Pacific region, and its Supply Chain division plans to invest €50 million over the next five years to expand its Technical Services offering, part of its overall Service Logistics solution.

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DHL has mapped out expansion plans for China, India, Japan and Singapore, and aims to double its footprint in these regions.

According to Paul Graham, CEO of DHL Supply Chain, Asia Pacific, the company estimates that the logistics market is growing at about 25% per year. Of that, service logistics services, especially technical services and repairs, accounts for up to 60% of the overall spend.

 

"Harnessing the size and scale of our extensive footprint spanning 42 countries and territories in Asia Pacific, we have a unique opportunity to bridge the market gap between companies offering technical repairs and logistics providers," said Graham.

He added that DHL's service logistics solution builds on a network of more than sixteen distribution centres and almost 500 field stocking locations in Asia Pacific.

 

DHL operates from 400 sites in China and 470 locations in India, of which 15% of the company's sites in China and 40% of its facilities in India support service logistics activities.

 

The company expects to double this number and increase its service logistics footprint in China and India within the next three - five years.

 

In Japan, DHL operates from a network of 270 sites, approximately 20% of which cater to service logistics.

 

In Singapore, DHL currently operates a 24/7 call centre for Europe and the Asia Pacific region for service logistics, and plans to launch an Asia Pacific Centre of Excellence for Solutions Development based in Singapore.

 

DHL has also launched its first technical services competency centre in Asia, which is co-located at its 200,000 sq.ft logistics hub in Bayan Lapas, Penang in Malaysia. The facility is designed to offer integrated technical services solutions, from warehousing and distribution of spare parts, to reverse logistics including screening, testing, repair and asset recovery.

 

The facility also houses an Authorised Service Provider (ASP) management team that supports services such as warranty verification and spare parts purchases across Asia Pacific, and a technical call centre to assist customers with advanced levels of repairs.

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