Bangkok, 3 June 2009 – DHL, the world’s leading logistics company, is capitalizing on opportunities in supply chain solutions for the Airline Catering sector estimated to be worth 12 billion euros (approximately 580 billion baht) per annum globally. Building on its expertise in Supply Chain Management and Business Solutions, DHL aims to examine further opportunities within this sector and grow existing relationships with players in the Airline Sector. The logistics leader shared its focus on airline solutions at the Asia Pacific Airline Engineering Purchasing & Supply Chain Conference held in Bangkok.
The Asia Pacific region is a focus area for DHL Supply Chain as 10 of the world’s top 35 airlines are Asia Pacific carriers. The region is also the second largest driver of international air travel. DHL Supply Chain offers complete end-to-end solutions for the Airline Catering Services sector, from procurement to the provision of food catering and in-flight entertainment, right through to the final mile delivery to the aircraft, and returns management – the disposal of waste from the planes and washing of reusable items.
DHL has vast experience in managing extremely complex supply chains across a broad range of business sectors, from Aviation to Automotive and Healthcare to Retail, including multi-temperature food distribution where the typical spend on the Supply Chain is between 5% and 10% of turnover. In-flight services or ‘above the wing’ items – products on board the plane for customer comfort, appears to fall squarely within this range. Of this, food catering accounts for between 20% and 30% of cost and the remaining 70% - 80% relates to the supply chain.
“DHL’s airline solutions help airlines better manage the ‘above the wing’ cost, and add value by reducing cost and improving product choices for the customers’ benefit. DHL’s approach represents a fundamental shift to consider airlines’ onboard requirements as a total end-to-end process. This frame of reference enables DHL to work closely with airlines to identify opportunities to improve efficiency, product selections or reduce costs,” said Paul Graham, Chief Executive Officer, DHL Supply Chain Asia Pacific.
“There are over 40,000 unique items that go on board a B747 aircraft, enabling numerous permutations offered to passengers depending on the passenger’s travel class. A seamless supply chain is critical as airlines have short turnaround times and exceedingly low tolerance for delays,” he added. “The current challenging economic climate encourages businesses to consider changes that will make a fundamental difference in their product offering, service quality and bottom line.”
In Asia Pacific, DHL Supply Chain is seeking to replicate the success of its multi-million pound annual contract with British Airways, to handle in-flight catering services for short haul and domestic flights from Heathrow. The 10-year contract, which comes into effect in 2010, will involve the provisioning, consolidating and transporting to the aircraft, of up to 13 million meals per annum in premium and economy cabins, the in-flight retail, in-flight media and all items to drive customer in-flight satisfaction.
Easing the congestion at Airports: Opportunities in Retail Logistics for Airports
DHL is also eyeing the opportunity to offer solutions to airport authorities keen to ease congestion in airports. Particularly in Asia Pacific which has seen tremendous growth in the passenger numbers in airports, congestion is an increasing concern. Between 2004 and 2007 , passengers passing through the Bangkok airport grew an average of 13%, 40% through Beijing airport, 20% through Hong Kong, 20% in Jakarta, 15% in Kuala Lumpur, 17% in Seoul, 27% in Shanghai and 15% in Singapore.
DHL Supply Chain presently runs the award-winning Heathrow Consolidation Center on behalf of the British Airports Authority. The 25,000 sq ft multi-temperature facility is the consolidation point for a broad range of goods destined for Heathrow’s retailers. This not only removes multiple trips by vendors to individual retailers in each terminal, it also enables retailers to reduce inventory stored at the airport stores as stocks can be replenished more frequently from the consolidation center.
“Heathrow is one of the busiest airports in the world, and the consolidation center model has reduced retailers’ movements by 70%, enabled recycling of 120 tons of cardboard and reducing CO2 carbon emissions in excess of 60 tons per annum,” said Graham.
DHL’s own operations give it an in-depth understanding of the requirements and constraints of the airline services sector. “We are the ninth largest airline in the world, handling 12% of worldwide cargo out of 220 airports. Many of the solutions required by the airline services sector are not unlike other industries we service across the FMCG, consumer, technology, automotive and fashion sectors,” said Graham. “In addition to our unrivalled network of over 220 countries and territories, we have core skills in business transformation with committed teams to help see through the seamless implementation as we work with businesses to redesign their supply chains.”
DHL eyes €12 billion opportunity in airline catering sector
In the picture:
Paul Graham (2nd right), Chief Executive Officer, DHL Supply Chain Asia Pacific and Chris Jackson (far right), Global Vice President, Airline Business Solutions, DHL Supply Chain at the press conference held recently to reveal opportunities in supply chain solutions for the Airline Catering sector estimated to be worth 12 billion euros (approximately 580 billion Baht) per year globally.
DHL eyes €12 billion opportunity in airline catering sector
Ready to serve.
DHL recently revealed opportunities in supply chain solutions for the Airline Catering sector estimated to be worth 12 billion euros (approximately 580 billion Baht) per year globally. The solutions can help airlines improve efficiency of the airline catering services sector and reduce costs.
Media contacts:
DHL Thailand
Ms. Pimnatda Vijjupanont
Tel: 0-2791-8009
Fax: 0-2285-5732
Email: pimnatda.vijjupanont@dhl.com
Hill & Knowlton Thailand
Ms. Orawan Chuenwiratsakul
Ms. Pitchpatu Waiyachote
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Fax: 0-2627-3510
Email:ochuenwiratsakul@th.hillandknowlton.com
pwaiyachote@th.hillandknowlton.com
About DHL
DHL – The Logistics company for the world
DHL is the global market leader in the logistics industry and “The Logistics company for the world”. DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services. A global network composed of more than 220 countries and territories and 310,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting climate protection, disaster management and education.
DHL is part of Deutsche Post DHL. The Group generated revenue of more than 54 billion euros in 2008.
For the latest news and happenings about DHL in Asia Pacific, please visit http://press.ap.dhl.com
About DHL Thailand
DHL Thailand offers customers a comprehensive range of logistics solutions through three business units: DHL Express, DHL Global Forwarding and DHL Supply Chain. Customers can enjoy the convenience of one-stop-shop service, from shipping documents to containers, delivered by over 5,300 DHL staff. With over 70 locations around Thailand, DHL’s services cover 76 provinces in the country. For further information, please visit our website at http://www.dhl.co.th
About DHL Supply Chain Thailand
DHL Supply Chain Thailand was established in 1995 and currently employs approximately 5,000 people working across multiple warehouses and office facilities covering an area of more than a quarter million square meters. DHL Exel Supply Chain Thailand focuses on providing third party logistics solutions to customer in the consumer, retail, technology, automotive, healthcare, industrial and chemical sectors. For more information on how DHL Exel Supply Chain can help your business, please call our Business Development Department at 02 7918000.
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Hill & Knowlton Thailand
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