Firm committed to SA
Digitalisation and artificial intelligence are changing the game in the express delivery industry globally and locally and those businesses that have invested in state-of-the-art technologies are reaping the benefits, says Jed Michaletos, MD at DHL Express South Africa.
Consumers, he says, are demanding ever faster delivery and certainty on the price they are paying for that service. Though price is a consideration, what customers using express delivery services want most is reliability and transparency.
Globally, DHL is a frontrunner when it comes to sustainability, including moving to cleaner energy and fuel. Locally, the company has had electric scooters in operation for the past five years and is currently piloting fully electric delivery vans with a view to converting a large portion of its fleet to electric vehicles. This is in line with the group’s commitment to convert 60% of its last mile delivery fleet globally to electric by 2030.
Michaletos says DHL Express, which is primarily focused on international deliveries, has seen significant growth in the e-commerce space globally. The uptake of this in SA and Africa has been slower but has significant growth potential as intraAfrican trading grows.
“Currently, 15 of the top 20 fastest growing cities globally are in Africa and it’s estimated that, by 2027, all 20 will be found on the continent. When you combine that with population growth, there is opportunity for e-commerce on the continent and, in turn, for the further growth of the express delivery industry.”
He also predicts that the green economy will provide a new vertical market for logistics providers, particularly in SA where the energy crisis is inhibiting economic growth.
The company remains committed to SA and is making a significant investment in a new facility based at Waterfall in Gauteng. This facility, which includes a R100m investment in new equipment, will increase the company’s operational efficiencies, allowing it to process shipments more quickly while at the same reducing manual processes. This building has been designed to be fully carbon neutral, which is a first of its kind for DHL Express on the continent. DHL’s investment into the new facility over the next 15 years is about R500m, says Michaletos.
“We see SA as a prime destination to help businesses trade in Africa and beyond. We have a specific focus to help SMEs connect and trade on a global level. An example is a South African-based customer of ours, a textile business, which has ramped up its international deliveries from five shipments a month to more than 500 a month. That ability to open up international markets for small and medium-sized business is a huge motivator.”