Deutsche Post DHL reveals plans to spend €2bn on digitalisation

Deutsche Post DHL yesterday unveiled its strategic plan running until 2025, with the digitalisation of operations playing a key role in the future development of the company.

The postal, express and logistics giant said that it would spend €2bn on digitizing its business over the next five years.

The company said that it would modernise its IT systems, integrate new technologies, offer its employees targeted advanced training to enable them to use these technologies and, thus, steadily improving its services, processes and standards.

Efficiency will be improved by greater automation and improved transaction processes, for example through warehouse automation and robotics programmes.

Data Analytics will be widely applied for example to foster routing optimisation through advanced algorithms, operational volume prediction and with this optimised resource planning.

“Moving forward, we will bundle our technological capabilities as a Group in global Centers of Excellence. Here we will centrally develop key technologies like Internet of Things, IoT, and then provide them to our divisions. This way we can leverage the strength of our Group to push forward our digitalisation,” said chief executive Frank Appel.

The company also revealed new financial targets running until 2022: earnings before, interest and tax and expected to reach €5.3bn, cumulative free cashflow 2020-2022 is expected to reach €4.5bn-€5.5bn and planned capital expenditure is expected to reach €8.5bn-€9.5bn.

“Deutsche Post DHL Group has never been in better shape,” added Appel. “We are convinced that future growth will come from a consistent focus on our profitable core logistics businesses –and digitalisation will become the greatest lever.”