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“India is amongst our biggest and one of the more challenging markets in the region,” Pang added.
Let’s talk technology & market: DHL wants regulatory and mind-set change.
An exclusive interview with Pang Mei Yee, Vice President, Innovation, Solution Delivery & Service Management, DHL Customer Solutions and Innovation Asia Pacific.
Research & Development at DHL has been going on for years to serve the future markets and the journey continues.
Technology is important for logistics especially in this era as it is the backbone of all businesses. “It is critically important that we have the right infrastructure for logistics, almost all of which is driven by technology and innovation,” said Pang.
DHL is busy developing processes for managing big data for the most efficient way of sharing information with customers and authorities; e-labelling of inventories and stocks; deployment of robots and driver-less vehicles within warehouses and freeing manpower for more productive jobs; drones for deliveries in challenging environments and congested urban regions; vision picking and visibility of stock movements and monitoring inventories and, last but not least, safety and security of employees, she stressed.
“There are new labelling technologies and mobile applications allowing for more friendly ways for businesses to be able to have more visibility to their supply chain,” she explained.
“We are experimenting on different trends covered under our trend radar research; where topics such as data analytics, Internet of things, augmented reality, 3-D printing and drones are covered,” said Pang.
DHL’s technology advancement in Asia Pacific is driven with ambitious targets to be achieved in phases, in line with some of the tough processes of making regulatory changes. The international group is in exploratory talks to pilot a number of the technologies and innovations to operate in the “very competitive business”.
The governments need to understand technology and innovation to set up regulatory framework. The consumers need a mind-set change, she said.
In the meantime, DHL is working with its customers to fine tune processes for e-commerce and online shopping at warehouses in managing corporate product movements and stock holding at stores within shopping hubs for the local consumers.
“It is a challenge but we are working ahead of all that is required. We are on a learning journey with our customers,” said Pang, pointing out DHL’s US$10 million investment on research work, understanding and updating Asian market requirements.
India and GST
“India is amongst our biggest and one of the more challenging markets in the region,” Pang added.
For India, DHL is looking at the market requirement. There are three things that keep coming up in markets like India.
First, how both the national and state governments are facilitating the flow of goods in the country. How the Goods and Services Tax (GST) is going to improve the information flow or what the requirements will be when you cross state-to-state borders with goods. The implications of the new GST process to the logistics providers and how it would impact the infrastructure that logistic service providers will have to build.
Secondly, how can the technology enable the flow of information that will still be required on an ongoing basis? While the government would be looking at regulatory changes, DHL is already watching closely how the practicalities of moving information would be. “Hopefully we can then participate in a journey where we have a smooth system supported by technologies to allow for those movement of goods,” she stressed.
Thirdly, DHL is in tune with Prime Minister Narendra Modi’s “Made in India” initiative. “We are looking at how companies are moving manufacturing into the Indian market. Within the business of DHL, above and beyond innovation, we have already provided quite sophisticated solutions, such as those for inbound manufacturing,” Pang disclosed.
“But going forward, in the coming year or two, it is a question of how we help customers manage various suppliers globally and bring goods into the country for manufacturing and then move into the market,” she said. A lot of these solutions are already in the system – the key question is how companies adapt these solutions for an Indian market.
“From our point of view, innovation is also bringing new ideas into the country that has not been exposed to it, even if it is already quite standard material and a practised solution in developed markets.
“The Indian market has enormous opportunities and we are closely watching the market dynamics. We do see companies starting to make announcements of investments in manufacturing in India,” noted Pang. The American automobile manufacturer, Ford, opened a new highly automated plant to triple its exports from India.
“We are watching what our customers are doing and we are looking for opportunities to serve them in the Indian market – how we use technology to support that, the kind of solutions that they need and understanding where technology will serve its purpose,” stressed Pang.
“We are already a significant player in India with strong network,” said Pang. The technology induction approach is the same elsewhere globally for DHL which has a network spread over more than 220 countries and territories.
In fact, DHL is looking to initiate a dialogue with its customers and partners to implement these innovations and technologies into the country’s logistics management system. Pang underlined the need to address sensitivities, security and safety of people as how it is being done in other markets.
DHL’s Singapore Innovation Centre, just launched in December 2015, is one of the biggest point of introducing innovations and technologies in Asian markets. It is the first outside Germany and supports the company’s US$10 million investment in Asia Pacific research and will also serve India.
Consumer
India is one of the fastest growing markets in terms of online-shopping.
DHL has invested in efforts on changing of consumer behavior – online, offline on internet; on applications (apps. It is ready for the consumer market.
Consumers are already expecting preferred brands to serve them in totally different ways than how it was done five to 10 years ago, she observed. This would require businesses to do things differently and for DHL to fulfill its role in the supply chain differently.
“There has been a lot of thinking on how can we support our customers when it comes to last mile, which is traditionally our strength – helping consumers to receive their goods,” said Pang.
DHL has just launched an Omni-Channel Logistics Trend Report and identified numerous logistics implication on this trend. The report can be found on www.dhl.com/omnichannel. fii-news.com
