DHL setting its sights on China's western regions
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E-mail China Daily, June 19, 2013
Deutsche Post DHL, one of the first foreign courier companies to enter China, will tailor its services for the country's booming western regions, a top company executive said on Tuesday.
A growing number of enterprises are relocating to these regions to better manage costs and increase efficiency.
The company, with headquarters in Bonn, Germany, will provide a range of solutions, including new warehouse management systems, to help manufacturers rein in logistics spending following the huge urbanization drive in China's inland areas, according to William Meahl, DHL's chief commercial officer.
"West China is where people move their operations for lower labor and property costs. But if logistics doesn't move along with manufacturing, you cannot move up the value chain," Meahl told China Daily on the sidelines of DHL's annual global technology conference in Shanghai.
The company will strengthen its ability to connect clients in western China to the rest of the world, and by using an intensified air and rail network will consolidate various business services to be delivered to Asia.
Asia accounted for 20 percent of DHL's global sales last year, with China claiming half of this share. Meahl said he expects the Asian percentage to rise to one-third in the next five years, with China continuing to take the lead.
He identified the high-tech sector - driven by constant innovation, short product cycles and new sales channels - as one of the key growth areas of DHL's China business portfolio.
Deutsche Post DHL, one of the first foreign courier companies to enter China, will tailor its services for the country's booming western regions, a top company executive said on Tuesday.
A growing number of enterprises are relocating to these regions to better manage costs and increase efficiency.
The company, with headquarters in Bonn, Germany, will provide a range of solutions, including new warehouse management systems, to help manufacturers rein in logistics spending following the huge urbanization drive in China's inland areas, according to William Meahl, DHL's chief commercial officer.
"West China is where people move their operations for lower labor and property costs. But if logistics doesn't move along with manufacturing, you cannot move up the value chain," Meahl told China Daily on the sidelines of DHL's annual global technology conference in Shanghai.
The company will strengthen its ability to connect clients in western China to the rest of the world, and by using an intensified air and rail network will consolidate various business services to be delivered to Asia.
Asia accounted for 20 percent of DHL's global sales last year, with China claiming half of this share. Meahl said he expects the Asian percentage to rise to one-third in the next five years, with China continuing to take the lead.
He identified the high-tech sector - driven by constant innovation, short product cycles and new sales channels - as one of the key growth areas of DHL's China business portfolio.
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