Is Expediting Driving DHL's Global Growth?

Over on European Leaders, I found this fascinating short article noting that DHL's growth in Asia is largely coming from a boost "in the number of express delivery shipments" in the region. Expecting growth in the area, DHL previously "invested $1.7 billion in Asia-Pacific over the past six years" and "expects shipment volumes to continue rising." Kudos to DHL for reading the market need in Asia. But the rapid growth of DHL's regional business is also a sign that companies are resulting to expediting to meet inventory needs rather than relying on lower-cost transportation options. In at least some cases, DHL's success is coming at the expense of procurement and operations organization's failure to source goods at the lowest total landed cost. I would challenge all procurement organizations to take a look at their expediting expenses to make sure that they're making the right global sourcing decisions.

Jason Busch

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