Insight into Deutsche Post's Strategy 2025 for digitization
Deutsche Post DHL Group will invest €2 billion in digitalization as part of its Strategy 2025, building on Strategy 2020.
The new strategy is the group’s answer to trends in globalization, digitalization, sustainability and e-commerce, with digital transformation being stepped up.
Till 2025, DPDHL will spend around €2 billion on digitalization, a sum already included in the planned Opex and Capex spending, which is expected to lead to yearly benefits of at least €1.5 billion by 2025.
Speaking at the presentation of Strategy 2025 in Frankfurt am Main, CEO Frank Appel says the group has never been in better shape.
He says, “We are convinced that future growth will come from a consistent focus on our profitable core logistics businesses – and digitalization will become the greatest lever. We need not reinvent ourselves. We will digitalize ourselves.”
IT systems will be modernised by integrating new technologies, offering employees targeted advanced training to improve services, processes and standards.
Efficiency will be improved by greater automation through warehouse automation and robotics programs.
Data algorithms will be widely applied to route optimisation, operational volume prediction and resource planning.
Appel says, “Moving forward, we will bundle our technological capabilities as a Group in global Centers of Excellence. Here we will centrally develop key technologies like the 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 digitalization.”
The group has set financial targets for 2022, including EBIT of at least €5.3 billion, generating free cash flow of €4.5-5.5 billion and planned Capex of €8.5-9.5 billion from 2020 – 2022.