DHL is one of the leading players in the world in logistics solutions, connecting 220 countries across the globe. In an exclusive interaction with The Dollar Business, Christoph Remund, CEO, DHL Global Forwarding (India), reveals how he plans to expand DHL’s already formidable presence across the country.

Interview by Ahmad Shariq Khan | April 2016 Issue | The Dollar Business

TDB: What is it that makes DHL stand out from the crowd?

Christoph Remund (CR): DHL has been building its logistics presence and strengthening its leadership position in India since it entered the Indian market about forty years ago. DHL Global Forwarding India is a specialist in air, ocean and road freight as well as industrial projects, and end-to-end transport management solutions. I believe, DHL’s family of divisions offer an unrivalled portfolio of logistics services – all with specialised solutions for growth markets and industries including e-commerce, technology, life sciences and healthcare, energy, automotive and retail.

TDB: What are the various tools that DHL offers Indian exporters to hedge their overseas risks? Going forward, how do you plan to assist freight and supply chain activities in India?

CR: For over a decade, DHL Global Forwarding has maintained a market leadership position at all gateway airports in India. DHL’s vision to become the first choice of customers, investors and employees, has been at the core of its success. Amongst the many milestones, the company was instrumental in bringing in freighter operations to meet the demands of its customers. Our ‘Customs & Trade Consulting’ department helps exporters in getting Authorised Economic Operator (AEO) certification. AEO is a global Customs & Trade Security programme which India has also adopted recently. The company also has a security department which helps trade partners in understanding global security laws such as CTPAT (Customs-Trade Partnership against Terrorism). DHL Global Forwarding therefore assists trade in the preparatory work for getting accreditation, during as well as post the accreditation process to ensure the standards committed to are followed diligently. Further, our Free Trade Zone provides export consolidation platform for the overseas buyers within India thereby reducing the risk and cost for the Indian exporter.

TDB: DHL is planning to invest about $16.3 million in India. Can you please elaborate on these investments?

CR: DHL Global Forwarding India continues to invest in developing its own Free Trade Zone facilities in Mumbai and Tamil Nadu, to provide world class warehousing infrastructure, boost employment opportunities and offer related services to enhance trade opportunities for its customers. This includes a special multi-zoned temperature and humidity controlled area for the life sciences and healthcare industry. Several other value added services that cater to all sectors of industries include – labelling or bar coding for the fashion & apparel industry; specialised handling of hazardous commodities and open storage for the oil & gas industry; temperature controlled storage for the pharma industry; and general services such as packing management, sorting, inspection, re-invoicing, strapping, kitting and assembly of semi and complete knocked down kits for aviation, IT and telecom industries.

TDB: A DHL study reveals that small and medium-sized enterprises (SMEs) engaged in international markets are twice as likely to be successful as those that only operate domestically. What’s the lesson for Indian SMEs there?

CR: Small & Medium Enterprises (SMEs) have been the backbone of the Indian economy and they have emerged as a highly vibrant and dynamic sector over the last few decades. Key benefits to Indian SMEs with an international approach are – access to new markets, access to know how and technology and diversification of their products or services. SMEs’ biggest concerns relating to international trade are a lack of available information on foreign markets, high customs duties and the difficulty of establishing contacts with foreign partners and overseas customers. As a global logistics company, we aid our SME customers to make this process efficient. Also, the company continues to tailor its services and solutions to help SMEs grow and compete in the global arena.

TDB: The government is encouraging public private partnership (PPP) at major ports, besides it has also been pushing for multi-modal logistics parks. How will these initiatives help accelerate the pace of trade in India?

CR: For India to become the manufacturing hub of the world, as envisaged by the government, these initiatives are a pre-requisite. PPP is a proven and tested model that has worked well both in India and globally. Dedicated freight corridor (DFC) may need a fast track implementation as it complements the launch of state-of-the-art terminals. The Nhava Sheva port, for example, has regular congestions due to lack of a DFC. The key to DFC’s success, however, would solely depend on its speedy implementation. Once Goods & Services Tax (GST) gets implemented, we could see both the logistics parks and free trade zones (FTZs) developing at a much faster pace.

TDB: Can you tell us about your recently adopted risk management platform aimed at managing risks in supply chains and gaining better visibility of end-to-end supply chain issues?

CR: We ensure that our global customers have visibility into product flow right from the area of production to the area of consumption by deploying and constantly improving our state-of-the-art visibility systems. Whether it is for automotive, life-saving healthcare products or time sensitive fashion or retail products, the company constantly monitors the flow of cargo and accompanying documents over land, air and ocean. With sourcing becoming global, DHL’s growing presence on the world map ensures that subject matter experts provide visibility of cargo status for global customers irrespective of the time zone. We understand that we are in a business with many associated risks and are always ready for any eventuality. That’s the reason why issues such as lightning striking at the port, typhoons delaying container loading and traffic disruptions hindering last mile delivery are all plotted, while the supply chain systems are constantly modified, allowing the customers to be updated on delivery schedules. We are aware that production and sourcing from developing markets have challenges, thus we aim to reduce and control such risks for its global customers with real-time visibility, a strong operational process, monitoring by subject matter experts and managing government agencies and related compliance. All these tools are available to Indian exports community and are being extensively used.