Managing in a Digital World: The Growing Role of Emerging Technology and Global Trade in Deutsche Post

This report discusses the growing role of emerging technology and global trade in Deutsche Post, particularly in DHL's 'Focus. Connect. Grow' strategy. It covers DHL's use of emerging technologies to enhance its logistics services, its aim to increase revenue from emerging markets, and its initiatives to motivate its workforce. The report also includes an overview of the organization and a review of the things learned.

RUNNING HEAD: Managing in a digital world 0
Managing in a digital world

Managing in a digital world 1
Contents
The growing role of emerging technology.................................................................................2
Global trade is improving Deutsche post...................................................................................3
The successor has to be different from better............................................................................4
Unleashing growth by motivating the workforce.......................................................................5
An initial overview of the organization.....................................................................................6
Review of the things learned......................................................................................................7
References..................................................................................................................................9

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Deutsche Post DHL is the leading mail and logistics company worldwide. The digital
technology leads to more growth. The technological developments underpin Deutsche Post
DHL’s new strategy 2020. DHL boost trade globally to develop regions invest in the
subsequent economies. This report comprises the interview segments with Frank Appel, CEO
of DHL Asia. DHL can provide service to the health care services. The logistics services can
be provided to the various countries concerning health care services like equipment,
medicines and vaccination.
The growing role of emerging technology
The growing role of emerging technology sees plenty of room to grow in the logistics market
globally as a part of ‘Focus. Connect. Grow’ strategy. DHL emphasized the hastening impact
of technology along with the automation on the logistics industry. Frank Appeal pointed out
that the company is only at the starting of automation. The company is required to look at
things like drones and parcel terminals. The assessment of operational data to make transport
and delivery more competent will become more significant. The rising demand for the
responsible business activities underlines the significance of social and ethical behavior along
with the need for environment-friendly solutions. The company even want to take initiatives
like go green to reduce CO2 emissions. It can be helpful to the company in attaining
sustainability objectives (Bagalwadi, 2015).
DHL even planned to install emerging technologies in 350 of 430 facilities in American
facilities and transportation control as a portion of $300 million investment. These selected
technologies will vary as per the customer needs and outcomes of the research. DHL’s
internal innovation team will collaborate with various external innovators. The technologies
are anticipated to assist the diverse customer base comprising those addressing challenges to
minimize the complexity and maximize service to the customers. It is the objective to DHL to
implement the selected technologies like robotics, robotics process automation, augmented
reality and internet of things. The investment in the supply chain is about emerging
technologies which enables customers to attain growth and profitability goals. The need of
customers is not homogenous due to the various challenges faced by the business along with
the levels of maturity. Appel said that it is significant for the company to get customers
benefited from the expertise with the range of emerging technologies.

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Frank Appel confronted that DHL is focusing on the technology to support faster delivery
times so that demand can be efficiently managed. The company is also already leveraging
emerging technologies at 85 out of 440 North American facilities. A lot of technologies are
already in artificial intelligence applications, active disposition, concerted piece picking
robots and self-driving vehicles stand to have the most promising present. The experience of
DHL with the technologies is to minimize infrastructure costs and maximize service levels.
The technology is one of the elements for DHL to attract and retain employees. It is one of
the motivations for the workforce which is considered a significant challenge in the logistics
industry (Baxter & Srisaeng, 2018). Frank Appel said in the interview that these technologies
enhance the value of people. The organizational members will be equipped with the enhanced
technologies, trained on evolving ones and retained through the culture of innovation and
collaboration. The company believes that emerging technology is not just for the business but
for the customers as well. The technologies foster the development of future logistics along
with the supply chain solutions. DHL has even launched 24000 square foot innovation center
just outside Chicago.
Global trade is improving Deutsche post
DTC is the world’s largest postal and logistics group. Frank Appel agreed that trade will
continue to grow. Deutsche Post DHL claimed that it has about 4% of total logistics market
worldwide and 19% share in the core markets comprising express and parcels delivery,
freight transport and contract logistics. The emerging markets have become important due to
the substantial shifts in the trading patterns. The demographic and economic trends mainly in
the Asia Pacific represent a growing customer base around the world (Dhar, 2018). It is
because the number of middle-class people is going to be more than double in the next two
decades. As a result, the combined GDP of the emerging markets such as India, China,
Brazil, and South East Asia is anticipated to grow 5.4% on an average whereas mature
markets in countries like North America and Western Europe will represent 2% growth.
Deutsche Post DHL aims to enhance global trade from emerging markets from 22% in 2013
to 30% in 2020. It is quite ambitious but realistic. This trend can put an impact on the way
global trade will increase in the coming years. The global express market is anticipated to
grow by 5-6% a year.

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The global trade makes possible a path to greater prosperity and a sustainable future. The
global trade is the engine of economic growth. The logistics fuel that engine. It is the aim of
the company to be a global partner with all size businesses worldwide. It can help the
company to develop, grow and prosper. DHL enhance trade globally which is helpful in
developing regions and their people to maintain better lives. DHL has estimated global B2C
cross-border e-commerce market to reach up to USD $1 trillion by 2020. Add on, the outlook
for air freight remains forceful after the progress of business since 2010. As per Global trade
barometer, DHL uses logistics data for forecasting demand for the next quarter which rose to
66 points from 64 points. The value above 50 signifies positive growth for global trade. The
issue faced by DHL is to customs regulations. The group is still less impacted on the freight
business due to global trade (Eccles, et al. 2018).
On the other side, DHL has launched global trade barometer, an index intended to signify the
current state of global trade and for offering insight on movement. The essential value of
barometer is generated from the logistics data of the company and evaluated by using
artificial intelligence. The barometer is centered on the import and export data and it
represents the trend of industrial production. It can comprise name brand clothes, touch
screens for mobiles and car parts. The index sources comprise aggregated demand from the
air and contaminated ocean freight in 7 nation’s accounting for ¾ of the world’s trade.
(Source: Transport Topics, 2018)

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The index value above 50 specifies a positive development whereas below 50 represents a
drop in the global trade. The testing of index against the historical data represents a
connection between the value and real containerized trade. Add on, barometer provides an
estimate for the coming three months. The barometer value for the January 2018 was 64
which indicated rising global trade from January to March. Although this value was below
from the previous months, the growth may be losing push.
The successor has to be different from better
The Deutsche Post is the successor to the German mail authority Deutsche Bundepost. The
successor company was privatized in 1995 and converted in the whole independent company
in 2000. Deutsche Post has considerably expanded business through the acquisitions. Frank
Appel believes in adopting changes and does not believe in traditional practices. In order to
be better, the successor has to be different. DHL has shifted to the international trade patterns
contributing to e-commerce growth worldwide. The technological developments and
sustainability are the global megatrends reinforcing success. Deutsche Post has acquired UK
mail which is a UK based postal service. The Deutsche Post has become a leading company
in just two decades. The company views e-commerce as the major growth area and sees
plenty of room to develop in the logistics market globally. The “Focus.Connect.Grow”
strategy is the main part of the company’s success. The company has attained a 19% share in
its core markets. Frank Appeal once announced that he is convinced that trade will continue
to grow. The demographic and economic trends mainly in the Asia Pacific indicates growing
customer base globally. The company even aimed to increase the revenue from the emerging
market to 30% in 2020. It is a realistic footprint for the company (Herold & Lee, 2017).
DHL even planned to construct a wide broad e-commerce logistics service portfolio. It is
helpful in stretching from the first time mile with the facilitation services like marketing and
payment services, web market places, through efulfillment. It also comprises warehousing in
association with the DHL supply chain. Add on, the new DHL e-commerce unit will cover
specifically Asia and America. It will incorporate the prevalent DHL global mail business in
the USA and Blue Dart express in India. The company has even confirmed to deliver B2C
parcel services in both domestic and global markets. DHL has even planned to be active in
both British and French B2C markets. DHL has represented 40% of its volume from the US
business which is quite profitable. The company did not compete with the UPS in its
domestic market (Köhler, Alter & Cameron, 2018). In order to manage operations in a better

Managing in a digital world 6
way, DHL has considered the way to export German last-mile delivery solutions. It is going
to comprise self-service parcel terminals, pick up and drop off parcel shops and parcel boxes
to other countries. The company is well positioned for the global e-commerce parcels
expansion. It is because the company already exists in virtually all nations of the world. DHL
has even maintained management and expertise teams for the cultural understanding in those
countries. The company has even attained a minor stake in the “All you need”, a German
online food retailer. The e-retailing in the grocery market is considered more developed in
other countries. Appel said that some posts are competitors in some markets whereas are
cooperation partners for the parcel returns (Kalokyri, et al. 2017). On the other side, post
brief is a secured e-mail product and the company has paid for it in order to attain higher
customer satisfaction. It can double the revenues to €200 million.
DHL also indicated the accelerating impact of technology and Appel commented that the
company needs to look at the things like drones and parcel terminals. The company even
wanted to move beyond the go green solutions. It is possible by commercializing green
products and services and assisting consumers to augment their supply chain and attain
sustainability objectives. DHL is focused on improving volumes and profit margins (Liang, et
al. 2016).
Unleashing growth by motivating the workforce
DHL unleashes the growth of motivating employees. As Frank Appel said that the culture of
the company is driven by the strong respect for the employees and community. It is the core
reason for the sustainability of the company. DHL brings a smile on the people’s faces by
delivering parcels, letters and packages around the world (Lemke, Iwan & Korczak, 2016).
The company supports to people whenever they need assistance by reaching to them quickly,
even in the adverse conditions. The philosophy of 1-2-3-4-5-6 is signified in DHL for
motivating the workforce. 1 indicates that the workforce is a great team, 2 indicates two
guiding principles, respect and results. 3 indicates the expedition to deliver on three bottom
lines for three key stakeholders, customers, employer and investment of choice for
shareholders being responsible to the environment. 4 represent the four pillars of the focus
strategy, motivated people, great service quality, profitable network and loyal customer
signifying to the righteous cycle of engaged employees, customer loyalty and robust business
performance (Lind & Barner, 2018). 5 indicate the framework of five core competencies to
define and measure the performance of leaders. It comprises making customers successful,

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shaping direction, developing others, leading higher performance and developing self. 6
indicate the six pillars of recognition. The recognition has a lead role in the express focus
strategy. In this strategy motivated people, form a solid place in the on-going delivery of the
great service quality. Such motivated staff benefits customers with the ultimate attainment of
sustainable profit network. DHL empower employees by recognizing and rewarding
employees (Neacşu & Bălăşescu, 2016).
DHL employs more than 500,000 people in more than 220 nations. The company ensures that
the employees are aligned towards the goal of customer satisfaction. DHL has undertaken
initiatives and programmes for the employees to attain the benefit of higher education. The
company motivates its employees to complete their higher education and the tuition fee is
reimbursed by the company. The company even offers a monthly allowance to cover
employee expenses. DHL also arranges United Learning Day (ULD) as a unique learning and
development and engagement initiative. It focuses on the consistent learning of the
employees by taking ownership of their development. It is helpful to the employees in
accomplishing their development programs by competing in the most engaging way
(Nambisan, et al. 2017). During the ULD, the whole workforce except managers and team
members login together and are addressed by specific e-learning courses. Post the ULD
session, the employees gather skills and knowledge from their respective courses.
DHL has taken several initiatives to engage employees in the organization. The appreciation
week is an annually exercise taken to increase engagement levels. In this week, employees
attain the opportunity to thank customers, colleagues, and seniors who helped them in
attaining success. For instance, DHL India has launched a mobile app named “As-one”. It
keeps the millennial team members in mind. This app enables sharing of update and pictures
from the events, training, and functions. This app has a role in the direct interface with the
company human resource. DHL believes that the success of the company lies in investing in
people. The robust employee feedback mechanism helps DHL to identify areas of
improvement in the policies and practices.
An initial overview of the organization
Deutsche Post DHL is a major mail and logistics services group. The company offers one of a
kind portfolio of logistics and communication services. DHL offers everything needed by the
customers for transporting, packing and processing goods and information. The company

Managing in a digital world 8
offers friendly standardized products along with the innovative and tailored solutions ranging
from dialogue marketing to supply chains. Almost 470,000 employees in over 220 nations
have a role in forming a global network focused on the quality, service, and sustainability.
Add on, the mail division of DHL is the only benefactor of universal postal services in
Germany. The company delivers domestic and international mail and parcels (Oflac, et al.
2015). DHL is specialized in dialogue marketing, worldwide press distribution services along
with the electronic services linked with the mail delivery. The e-post brief product of the DFL
was first to offer protected and use-identified written communication on the internet. On the
other side, express division makes available courier and express services to the business
consumers and customers in over 200 nations. The global forwarding, freight division tackles
the deportment of goods by road, rail, air and sea. DHL is globally number one air freight
operator and number two ocean operator. It is also one of the leading overland freight
forwarders in Europe (Nylén & Holmström, 2015).
The supply chain division of DHL is the major market leader in contract logistics. It provides
warehouse, managed transport along with the value-added services at every level of the
supply chain. The company also offer end-to-end solutions for both corporate information
and communication management. The internal services of the group are associated with the
departments such as finance, IT and procurement. It allows the company to make efficient
use of the resources and responding flexibility to the changing demands of the businesses.
The DHL group is structured into four operating divisions. Each division is under the control
of the headquarters and is subdivided into the business units for the reporting purposes. The
divisions are well-positioned to gain the advantage of the growth markets of the globe
(Raffelhüschen & Schlinkert, 2015).
In 2014, the DHL group even introduced Strategy 2020: Focus. Connect. Grow. The object of
this strategy is to further position the company as the logistics provider for the globe. This
strategy is based on the three pillars, Focus, Connect and Grow. These pillars provide clear
objectives individually for the coming years with ambitious goals. DHL is continued to focus
on logistics as a core business. The company is expected to gain 85% of revenue from the
logistics business by 2020. The company will continue to secure letter business in Germany
along with expanding the e-commerce market. The focus pillar has even reconfirmed
commitment in 2015 strategy to contribute a better world with the living responsibility
program (Prange, Bruyaka & Marmenout, 2018). The industry-leading margins can be
attained by comprehending the goals of focus pillar. Connect as a part of pillar addresses a

Managing in a digital world 9
number of areas in which company will work closely to enhance service quality and
excellence. The company has taken the initiative of the certified program to offer specialist
training for employees. It will provide employees skills and knowledge in order to be
successful in jobs. The company even ensures that the divisions work together by sharing
best practices. It can help in attaining quality leadership by consistently delivering excellent
services. The growth pillar continues expansion in growth markets and segments specifically
in the developing markets (Uhl, MacGillavry & Diallo, 2016). The company aims to export
capabilities to other regions and tap into opportunities. It offers opportunities to the company
in domestic parcel delivery and e-commerce services. DHL intends to position its position by
strengthening and expanding into the emerging economies. The goal of the company is to
stem 30% of its revenue from the emerging markets by 2020.
Review of the things learned
The digital world strategy is behind the growth of the logistics and rise in employment. It
connects people and markets along with contributing to global prosperity. The digital
technology is effective in the logistics provider like Deutsche Post DHL. The green logistics
solutions have raised awareness. The logistics are not only behind the global trade but is also
involved in the value creation. The role of DHL in the networking industry is to connect
companies to every sector and region. The technological innovations are critical for
sustainable development solutions. The cooperative approaches are increasingly been taken
by DHL for sustainability (Stohl, Stohl & Leonardi, 2016). The company takes intellectual
steps to perform better than its competitors. DHL even offers the potential for the CO2
reduction. The shared warehouses and consolidated deliveries decrease emissions along with
reducing capacity and lower costs. DHL has even adopted innovative business models to
unlock the new business opportunities. For instance, the operation of large fleets. It can
become a vital part of the smart grids. It even allows DHL to become energy managers. The
trend towards dematerialization such as the digital distribution of books, documents, and
other medias offers innovative business opportunities. For instance, electronic letters can be
delivered securely as predictable ones by using solutions like Germany’s E-Post brief. The
government is also supporting to manage digital strategy by promoting international
standards. It helps to improve transparency. DHL has increased profitability and generated
future organic growth by cutting CO2 emissions. It forms an incentive for business and
logistics processes by designing more sustainably. The barriers to overcome CO2 emissions

Managing in a digital world 10
can be possible by combining solutions which are about to attain market readiness (Uhl &
Gollenia, 2016).
DHL is a pioneer in the go green programme. The company was first to offer CO2 unbiased
shipment along with setting itself as a specific target for CO2 efficiency. DHL has
maintained the major position in the global express market by focusing on the international
express business. It has enhanced the presence of the company in the growth markets. Add
on, DHL has pulled out in the U.S domestic market. It has adopted cut and run strategy vs
trying a turnaround at the time of facing tough challenges. At the time of considering synergy
between the divisions, the interdivisional strategy could better not to take the measures. A
good practice of synergy has been implemented by DHL in Germany (Tomoff, Hufschlag &
Pütz, 2016). A few years ago, German mail division fixed parcel stations where customers
could drop and pick the packages in 24/7 for their convenience. It enables customers the
flexibility of picking up parcels when they are not at home to receive packages. Such services
become widely practiced by DHL when there is time-definite delivery like Amazon purchase.
DHL has implemented an advantage in its implementing strategy of 2015 embracing IT. It
has become increasingly significant effect on the way it implements the strategies. It is
helping the company to improve efficiency and allows better control of the complex value
chain activities.

Managing in a digital world 11
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