Deutsche Post DHL Group reveals €2 billion digitalisation strategy

As part of its Strategy 2025, Deutsche Post DHL Group will be investing €2 billion in digitalisation of the company’s operations.

The digitalisation strategy includes greater automation, modernising IT systems, training staff to use new technologies, and using data analytics to improve route optimisation, resource planning and volume predictions.

It will be building “Centers of Excellence” (CoEs), teams of experts who will work across the business to accelerate the adoption of new technologies.

Credit: Deutsche Post DHL Group

“Deutsche Post DHL Group has never been in better shape. We are convinced that future growth will come from a consistent focus on our profitable core logistics businesses – and digitalisation will become the greatest lever," said Frank Appel, CEO of Deutsche Post DHL Group. "We need not reinvent ourselves. We will digitalize ourselves.”

The Group has identified digitalisation, e-commerce, globalisation and sustainability as the four pillars of its strategy for the next five years. The company noted that in the past few years it has “gradually disengaged non-core activities” in order to focus on the core logistics operations in each market segment, including post and parcel, express, freight, supply chain and e-commerce. This will remain its focus.

The Group predicts EBIT (earnings before interest and taxes) of at least €5.3 billion by 2022. Investment in digitalisation is expected to yield returns of at least €1.5 billion by 2025.

Source: Deutsche Post DHL Group