DHL Supply Chain is implementing a wide-ranging restructuring of its operations in the UK which involves its total supply chain division and the creation of a multi-sector, transport-only business unit. The restructuring will merge company’s services for the industrial sectors with automotive. It has also transformed its end-to-end supply chain management offering by merging its automotive logistics services with those supporting its existing portfolio for the industrial sector.
“The days are coming to an end with dedicated transport,” said Paul Dyer who will be heading the restructured UK business in his new role as managing director, Automotive Automotive, Industrial, LLP (UKI). “Trying to get like-minded fleets working together is the way forward.”
In the UK DHL Supply Chain is bringing together automotive and industrial – a broad portfolio of sub-sectors which includes non-automotive manufacturing and which encompasses construction, fuel, chemicals, energy and utilities amongst others.
“They are going to merge with our automotive business which covers inbound and manufacturing, aftermarket, tyres, spare parts and finished vehicles,” Dyer told Automotive Logistics.
The company has also consolidated its retail business and brought food, fashion and non-food retail together as one service.
In terms of its end-to-end supply chain management, or Lead Logistic Provider (LLP) offering, the company is aiming to put together not just automotive and industrial customers but also those from the consumer and healthcare sectors it serves and create specialist teams dedicated to finding new solutions on a global basis.
“The message for the industry is that consolidation is about creating enhanced capability rather than cost reduction or overhead consolidation,” Dyer explained. “The main benefits are around transferring best practice and solutions from one industry to another.”
By way of example Dyer outlined the company’s strengths in supporting inbound and manufacturing logistics for the automotive industry and how it is now intent on bring those strengths to its industrial customers, including those in bus and coach manufacturing, aerospace and defence, as well as agriculture and construction. The transfer will also operate in the other direction according to Dyer.
“In Industrial we’ve got some good solutions in terms of engineering response, MRO, procurement and purchasing that may have benefit in the automotive space,” he said. “And again, in terms of transport, we have some good synergies for blending the automotive networks in the UK and Europe for automotive as well as the industrial customer base.
The restructured business will employ 7,000 people across 95 sites in the UK, servicing 130 customers.
In his new role Dyer has relinquished his former responsibilities as head of Global Automotive to Mike White who will handle the role from Germany, though Dyer will continue to lead the automotive sector across the EMEA region. For more details of Dyer's new role and the appointment of the executive team supporting the UK operation see this week's Executives on the move section in the news.
