With technology as a cornerstone of its strategies—first in “Strategy 2025” and now in the ambitious “Strategy 2030: Accelerating Sustainable Growth”—DHL Express India is using digital transformation as a fuel for its growth. From AI-powered route optimization to advanced shipment tracking systems and customer-centric platforms like MyDHL+, DHL continues to set benchmarks in efficiency and customer satisfaction.
In this interaction, Prasad Dhumal, VP-IT, DHL Express India delves into the role of technology in maintaining a competitive edge, the transformative impact of digitalization on logistics, and the innovative initiatives shaping DHL’s future. He also shares insights on empowering SMEs, balancing innovation with operational efficiency, and navigating the integration of emerging technologies such as AI and IoT into DHL’s operations.
Some edited excerpts:
How is technology redefining DHL Express India’s operations, and what role does it play in staying competitive across all fronts of the business?
DHL aims to understand a customer’s unique needs and curates personalized solutions that meet the customer’s requirements. The definition of customer centricity and the approach to achieving exceptional customer focus has evolved significantly. Over the last decade, digitalization has changed the face of the logistics industry especially with AI being introduced in this industry. Digitalization has also been catapulted due to the pandemic. Today, we are benefiting from ‘instant’ culture – instant online orders, instant deliveries, etc. and technology is the enabler for this.
So yes, technology and digitalization have been on our radar for the last decade. It is the cornerstone of our operations, ensuring efficiency, accuracy and most importantly helping us remain our customers’ first choice. It has been a crucial pillar of our Strategy 2025 and remains crucial in our newly launched “Strategy 2030: Accelerating Sustainable Growth”.
One of the best examples that I can share is our automatic shipment sorting facility that helps increase processing speeds and minimize errors, while real-time tracking systems keep customers informed about their shipments’ status, offering transparency and peace of mind. Additionally, advanced data analytics play a critical role in decision-making, from predicting shipment volumes to identifying optimal locations for new facilities. AI-powered route optimization systems help our couriers plan the most efficient delivery routes, reducing fuel consumption and improving on-time delivery rates.
Technology helps us remain one step ahead of the curve. It enables us to streamline processes, reduce transit times, and offer a superior customer experience. This technological edge ensures DHL remain competitive by meeting the evolving demands of customers and optimizing resource utilization.
Could you share examples of how tech-driven initiatives have directly impacted DHL’s business growth and customer satisfaction in India?
We believe business growth is driven by a superior customer experience, which results in the high profitability of a brand. As a proud provider of choice for our customers, we focus on making their lives easier by simplifying processes, reducing transit times and providing a seamless shipping experience. We do this by first analyzing each touchpoint of the customer journey and understanding how we can make our customers’ experience better right from their first interaction with us – booking a shipment online or in-store until we deliver their shipment to the consignee’s doorstep. Several of our clients share that the customers they sell to now see deliveries by DHL as an integral part of the service experience.
DHL services like on-demand delivery have been a game changer for customers, allowing shippers and recipients to customize delivery preferences, reducing the likelihood of undelivered shipments and improving customer satisfaction. We also have tools like My Global Trade Services (MyGTS) to help businesses manage cross-border logistics more effectively by streamlining documentation, calculating duties, and enabling access to the latest trade regulations. This ensures compliance, reduces delays, and enhances customer experience. The MyDHL+ platform is a user-friendly online shipping management tool that simplifies the shipping process by providing customers with end-to-end visibility and control. This seamless, all-in-one platform enables customers to handle all their shipping tasks in a single, mobile-friendly portal. MyDHL+ encourages flexible booking and offers easy access to support and information, thereby improving customer experience. Additionally, the introduction of electronic proof of delivery (ePOD) has enhanced customer satisfaction by providing immediate delivery confirmations and reducing paperwork. Customers can view, download, or email the ePOD details using the free DHL ProView online tracking tool, eliminating the need to contact customer service.
What are DHL Express India’s top technology priorities for 2024, and how do these align with the company’s broader strategic goals?
DHL Group recently launched our new Strategy 2030: Accelerating Sustainable Growth. Digitalization continues to be one of the most important trends to look out for over the next five years, and one of our key growth areas also speaks about accelerating digital sales. DHL Express’s key priorities are:
Investing heavily in cybersecurity
With the growing reliance on technology, cybersecurity threats are on the rise. DHL runs a full-featured ISO 2700x-based information security management system with certified main data centers and a full complement of objectives, processes, and guidelines to support our Information Security Policy. We also remain on guard 24×7. Our industry-leading cyber defence center operates 24×7 using a ‘follow-the-sun’ model to continuously monitor our global networks and provide rapid incident response.
Enhancing Digital Customer Experience
Our continued focus is on developing and enhancing digital platforms like MyDHL+, mobile apps, and AI-powered customer service tools. By improving customer satisfaction and retention through seamless, user-friendly digital interactions and real-time shipment tracking, we aim to redefine the customer journey in logistics. This remains a core priority at DHL, and as we ramp up our innovation, we will continue to curate more individualized solutions to meet the evolving needs of our customers.
How does DHL plan to balance innovation with operational efficiency as it moves forward in 2024?
A good question as innovation may not always mean operational efficiency. So, for us at DHL, we believe that innovation is something that happens anywhere and everywhere. You do not necessarily have to be from IT function to recognize a pain point and find a solution for it. We firmly believe we have the best talent in our teams and these individuals can only be encouraged to think independently if we allow them to innovate, bring their ideas forward and sometimes even have them become a system and process for us.
We formed the Digitalization (Digi) Council in 2021 made up of our own employees. This is a cross-functional team of Digi Champions who drive digital awareness, encourage digital innovation and inculcate a digital-first culture at DHL Express India. Over time, numerous innovative concepts have been brought to life, leading to the creation of several tools that optimize our processes. A great example of this where an employee leverages Digi Council is the DHL Import Easy Tool (DIET), which enables businesses to easily access pre-alert and post-shipment documents, improving collaboration with the clearance team and speeding up processing times.
Operational efficiency is ensured by following a step-by-step regimen. First and foremost, we take a very staggered implementation approach to any new tool we introduce to minimize disruptions. For example, before rolling out a new tool across the board, we run pilot programs. This allows us to identify teething issues, adjust, and ensure everything runs smoothly when it is fully deployed. Third, we focus on getting our employees well-versed with the tool. This helps everyone be an expert and helps maintain productivity. Last, we regularly evaluate and refine the process based on data-driven insights.
Can you highlight some of the latest technological capabilities and innovations DHL has introduced in India? How are these setting new benchmarks in the logistics industry?
At DHL, our approach to integrating emerging technologies like AI, Generative AI, and IoT is all about enhancing efficiency and delivering a better experience for our customers. We focus on seamless integration, ensuring these innovations fit smoothly into our existing infrastructure without disrupting operations.
Take Robotic Process Automation (RPA) for instance. We have been implementing RPA to automate repetitive tasks, such as sorting and data processing, which not only speeds up operations but also reduces the chance of error. This means our team can focus on more strategic tasks, leading to faster service and improved accuracy.
AI plays a big role in our customer service strategy as well. Our AI-powered tools, such as chatbots, handle customer queries around the clock, ensuring swift and accurate responses. Additionally, platforms like MyDHL+ give our customers real-time control over their shipments, from quoting and booking to tracking and analyzing key data, enabling them to make data-driven decisions with ease.
We are also making significant strides with low-code and no-code platforms through the Power BI Platform. This helps us build faster and more customized solutions without relying on extensive coding and be more agile in adapting to changing business needs and customer demands.
Public cloud services have been a game-changer too. They have provided the scalability we need to quickly expand our IT infrastructure, especially during peak seasons, ensuring our systems remain robust and efficient. It also means customers have easy, reliable access to our services anytime, anywhere.
Overall, we approach technology integration with a practical mindset. By running pilot programs and leveraging data analytics, we ensure that each new solution not only blends seamlessly into our operations but also sets a new benchmark for efficiency and customer satisfaction in the logistics industry.
How does DHL approach the integration of emerging technologies, such as AI, Generative AI and IoT, into its existing infrastructure?
Our priority is to understand the scalability of the solution. We focus on developing technology solutions that can be integrated across different regions and operations seamlessly. This ensures consistency in service delivery while allowing us to adapt to varying market demands. By leveraging scalable solutions, we can respond to changing customer needs swiftly and efficiently, enhancing our competitiveness.
Next, we leverage our innovation centres to try-and-test new technologies. These centers enable ideas to flourish and be tested in real-world scenarios. By fostering a culture of experimentation, we can evaluate the effectiveness of new technologies before rolling them out on a larger scale, ensuring that they meet our operational needs and customer expectations.
Our strategic partnerships with technology companies play a crucial role in allowing us to tap into and leverage their specialized expertise. These collaborations enable us to access the latest innovations and insights, enhancing our operational capabilities and offering more advanced solutions to our customers.
Being an industry leader, we recognize that investing in our workforce is essential for successful technology integration. That is why we prioritize continuous learning and training programs to upskill our employees in emerging technologies. By equipping our teams with the knowledge and tools they need to leverage these advancements, we ensure that we remain at the forefront of the logistics industry, delivering exceptional service and maintaining our commitment to excellence.
SMEs form a crucial part of India’s economic landscape. How is DHL Express leveraging cutting-edge technology to empower these businesses in enhancing their logistics efficiency and expanding their global reach?
SMEs are vital to India’s economy, and we are dedicated to empowering them with cutting-edge technology to enhance logistics efficiency and expand their global reach. It is a crucial part of our Strategy 2030. In India, we have signed an MoU with the Directorate General of Foreign Trade (DGFT), initiating a collaboration to facilitate capacity-building sessions, training, and workshops across 76 districts in three phases. This collaboration aims to equip Indian MSMEs with the necessary tools and knowledge to thrive in the international e-commerce market.
Having said that, we also have a host of tools to support and enable SMEs across the nation. Our My Global Trade Services (myGTS) is particularly beneficial to sellers in their business strategy development phase. As a free, online, self-service pre-shipment planner, companies can identify the correct Harmonized System (HS) codes to categorize products for shipping. It also offers preliminary data on existing free trade agreements between the source and target countries and helps customers by giving them insights on growing markets. This information gives sellers a transparent understanding of the associated costs, enabling effective product pricing and to understand demand in that market. When the business is prepared to make the leap, they can open a DHL account from anywhere and at any time. The setup is also accessible to startups and individual shippers lacking a credit history.
Our use of data analytics offers valuable insights that enable SMEs to optimize their supply chains and respond effectively to market demands. We also provide flexible shipping options that cater to the unique needs of these businesses, allowing them to adapt quickly to the evolving logistics landscape.
To enhance visibility throughout the shipping process, we offer tools like Track & Trace, which allows shippers to monitor their shipments in real time and prevent delays. Our On Demand Delivery service empowers shippers and recipients to customize delivery preferences, reducing the likelihood of undelivered shipments and improving customer satisfaction.
Beyond digital solutions, our GoTrade program actively supports SMEs by working with public sector partners to eliminate barriers and streamline international trade. By organizing webinars and workshops, we guide entrepreneurs in building their online businesses and navigating customs processes. Through these initiatives, we are not just enhancing logistics efficiency; we’re enabling businesses to seize new opportunities and grow globally.
Could you share success stories where DHL’s tech solutions have significantly transformed an SME’s logistics operations?
We regularly meet our customers to discuss what tools and services work for them and why they do business with DHL Express. For example, in an interview with Two Brothers Organic Farms (TBOF), Ajinkya Hange, Co-founder of the brand, mentions, “I think DHL’s focus on technology helps us ship to our international customers. The platform they give the users, right from placing the orders to tracking it and the focus on customer care – these are two highlights which help us service our end customers together.” He further mentions in reference to coping with international deliveries, “I think the on-demand delivery (ODD) service that DHL provides, along with having a relationship manager, has been very helpful over the past few years. Just the fact of having a relationship manager for the last mile delivery, someone who coordinates with you to get the order delivered to the customer, makes a big difference.”
Many other SMEs share the same feedback as they report remarkable enhancements in delivery times, thanks to our optimized routing algorithms. This technology not only streamlines the shipping process but also ensures that parcels reach their destinations faster, allowing businesses to meet customer demands more effectively.
Enhanced visibility has been another significant benefit for SMEs leveraging our real-time tracking and management tools. With these solutions, businesses gain better control over their shipments, enabling them to monitor progress and address any potential issues proactively. This increased transparency translates into higher customer satisfaction, as recipients can receive timely updates and anticipate their deliveries.
Through these tech solutions, we have seen SMEs transform their logistics operations, enhancing their overall efficiency and customer satisfaction. While individual stories may vary, the overarching trend highlights how our technological advancements are empowering businesses to thrive in an increasingly complex logistics landscape.
Route optimization is critical in logistics. How is DHL using data analytics and AI to optimize delivery routes and improve operational efficiency?
Route optimization is indeed a critical component of our logistics operations, and at DHL Express, we harness the power of data analytics and AI to enhance delivery efficiency significantly. Our approach begins with dynamic routing algorithms that analyze traffic patterns, weather conditions, and delivery windows. This allows us to determine the most efficient routes for our couriers, ensuring that we meet customer expectations in a timely manner.
By employing predictive analytics, we can forecast demand accurately and adjust our routes to optimize load and delivery schedules. Our sophisticated forecasting and prediction models enable us to predict shipment volumes with a remarkable 90%-95% accuracy. This capability is invaluable as it allows us to plan courier routes effectively, aligning volumes with service requirements and other essential variables.
However, we recognize the importance of integrating courier knowledge into our systems. Local insights can significantly enhance our predictions and execution, ensuring that we remain responsive to real-time conditions. The success of our AI-driven optimization efforts relies on accurate, relevant, and high-quality data, which we consider the “lifeblood” of DHL’s logistics processes. Through these advanced technologies, we are continuously improving our operational efficiency and providing our customers with greater flexibility and accuracy in their deliveries.
What have been the measurable outcomes of these AI-driven route optimization strategies in terms of cost reduction and service improvement?
The implementation of AI-driven route optimization strategies at DHL Express has yielded several measurable outcomes that significantly enhance both cost efficiency and service quality.
One of the most notable benefits has been reduced fuel consumption. By optimizing routes based on real-time data such as traffic patterns and weather conditions, we have been able to cut fuel usage. This not only lowers operational costs but also diminishes our environmental footprint, aligning with our commitment to sustainability.
Moreover, these advanced route planning techniques have led to faster deliveries. By streamlining our delivery processes, we can ensure quicker transit times for our shipments. This improvement not only boosts customer satisfaction but also strengthens our reputation as a reliable logistics partner. These strategies optimize our logistics processes, we are achieving better resource allocation and more sustainable.
