Thursday Nov 14, 2024
Thursday Nov 14, 2024
Thursday, 21 August 2014 00:00 - - {{hitsCtrl.values.hits}}
A: I have been with DHL for more than 10 years and started off as Country Manager in Malaysia and moved on to Singapore and took on an area role where South East Asia is under me. Initially I had four countries under me and then it was the whole of ASEAN. Now we have put south East Asia and South Asia together excluding India and Singapore. That works out to about 15 countries.
I see a lot of synergies. In our business we DHL are trade facilitators. We are here to help customers by enabling them to send shipments in a fast manner because our main core product is international. We are a network business so for us the way DHL looks at it as a strategy is that every country big or small has an important role to play. We treat all the countries in the same way. Therefore putting South East Asia and Asia together there is a lot of learning or what we describe as BDPs - Best Demonstrated Practices. There is a lot of sharing. We had a meeting recently for all the country managers in Malaysia and it was a good experience for all of them because what we did was to share what was going on in each country and then tying replicate it in another country. That is how we see that putting the two areas is beneficial to the people.
Q: How has DHL Express business fared in Sri Lanka? 
A: Sri Lanka is an important part of DHL Express for Asia Pacific and globally. We are a network business, we have customers who ship into Sri Lanka and there are customers who need to send it out to our network. Business has been good and growing in the last 30 years and particularly in the last five years. We actually are doing well and will continue to grow. The Sri Lankan team has really understood what the customers require and they are here to serve them. With the Government having a long term plan and strategy, we like it and we can see in which way we can actually grow with that.
Q: When you referred to long-term strategy did you mean the five hub concept?
A: Yes, the five hub concept. When we look at it we play an important role in all areas because again in express business we send express shipment and in shipping and aviation we have a role to play. We are quite excited about it. Internally we discussed about the Government’s five hub strategy in Sri Lanka and how we can benefit from it as well as foster it. When speaking about a hub it is about enabling trade between countries so if Sri Lanka is trying to do that then DHL is also a trade enable. In each of those five hub components – Maritime, Aviation, Knowledge, Energy, and Commercial – we are a player.
Q: The five hub as a policy has been there for the past five to six years? Did DHL look at it as a whole hub policy during your visit or before that?
A: As soon as it was announced we have been looking at it. It was put together about five years ago so we are keeping track. The more foreign business we bring in that will help facility here to help new investors to come into Sri Lanka.
Q: What really drives DHL Express in Sri Lanka in the next few years both in terms of innovation, investment and in terms of additional measures to service the customers?
A: We at DHL Express are in a number of countries and we continue to invest in our infrastructure and in that we are talking about operations and our people. Every year we continue to invest in capex. Very recently we invested $ 200,000 in order to tighten up our security in terms of sending shipments abroad. That is very important, by getting the certification for DHL Express in Sri Lanka and it comes part of a worldwide initiative to ensure safe measures when sending shipments abroad. That is just an example. On the people side we have a program titled Certified International Specialists (CIS) where we spend a lot of money globally and in the region training our people. It is a huge culture change but it goes down to all our people. For any training development program it is important the staff, management and facility and it is more meaningful. It is a huge transformation but it has been very successful. We can see how our people feel motivated. That is on the people side. Infrastructure we continue to invests every year and we continue to do that. So Sri Lanka is an important part of our business.
Q: How many people are employed in DHL Express?
A: We have over 200,000 employees globally and the certified international specialists are given across. We have a DHL passport where every training program one engages in gets a stamp. It is a passport to success. People are so proud to have this. It means lot to all managers and people on the ground. We redevelop this side of the company but it is worthwhile investment since we want to differentiate our people from our competitors.
Q: You sound very optimistic. Are there any specific plans on the ground? Anything you feel Sri Lanka lacks, and where DHL Express would like to see happening in the next five years in the Sri Lankan market?
A: I would speak more generally in terms of from a business perspective. We are made of many countries and each country has their own Custom’s and regulatory requirements. And sometimes that gets in the way of helping our customers to be able to do business much faster. So that is always a challenge so what we do is we engage with the government agencies line the Customs Department, Ministry of Finance and Ministry of Trade and have a regular dialogue. In Sri Lanka if we can make the borders more seamless then it makes it easier for Sri Lankan companies to export out. That is a continuous discussion in various countries we go to, always led with people on the ground. That is an area where we constantly need to work on.
As a service provider we are where our customers are so we wait for customers to come in so we are first in wherever we are and we pride ourselves in that.
On the CIS we were the first to start the program and it was part of the DHL Group 2020 strategy, one of which is focus, connect and groom, the connect part of the 2020 strategy is rolling out these kinds of programs to other business area. But we started slightly earlier.
Q: How big is the freight market in Sri Lanka and do you see growth? What are the trends going forward?
A: The freight market for us is broad terms. The way we look at it is by really looking at the country’s export and import growth numbers and we align the growth to these numbers.
Q: So the express segment, do you feel it is growing in double digit or single digit?
A: It has been growing but I believe the import market is growing faster than export.
Q: We have heard a lot about DHL brand expanding with dedicated online service but we haven’t seen it here in Sri Lanka. Can you comment?
A: The way we are structured in the aviation side is the combination of charters, joint ventures and using commercial airlines. The latter is an important part of the aviation strategy so you know for Sri Lanka depending on the opportunity it could happen but at this stage we believe we can serve our customers using the commercial airlines network. Our transit times are one of the best and our customers are happy. We use 17 different flights a day and that gives us more flexibility instead of having something fixed. We don’t want it to be a disadvantage to the customer if we brought the aircraft on two aspects, one is the flexibility and the second is the cost. It is not a sustainable number and we have tried this several times over the last several years. We were the first to have the air site facility here and we have done the investment even in times when people doubted. But an aircraft is a variable cost so it doesn’t make sense carrying an empty one.
If the customer needs a shipment very quickly the flexibility with commercial airlines will be more important. But if an opportunity comes we will definitely consider it.
Q: So as of now you don’t see Sri Lanka as a big market but you look at it as a potential market that can grow with various plans which the Government has in place?
A: Yes we have seen export growing so there is potential for it to get even better.
Q: From a South Asian region perspective where would you place Sri Lanka as a market? Given the smaller size of the markets, where do we stand?
A: I would say within the top 10.
Q: In terms of growth you feel we are among the top 10?
A: Yes. Actually the smaller markets are doing better. And Sri Lanka has that potential.
Q: As a global Express brand DHL has a lot of insights. What do you think Sri Lanka should get right in trying to become an aviation or shipping hub and trying to develop the country? In your experience what can DHL bring in terms of ideas and suggestions?
A: I think the Government has thought through this five hub strategy really well. I think the five areas that have been selected are the right ones for them to enable that growth for Sri Lanka. What comes with it is making sure that the investment opportunities are there which is very important. The Ease of Doing Business is all about facilitating investments and economic activities. So as a part of trade facilitators we want to make it easy. Our focus in Sri Lanka is to foster small to medium size enterprises. And we are here to help them export to other countries. So if the Government provides that ease of doing business to the SMEs then the country will improve. We are seeing that happen and that is why we are always keeping an eye working with the various Government departments. If they are working with the SME, we are there to support them. So I think they have the right strategy but it is just the matter of pushing it through.
Q: Sri Lanka recently made Colombo and Hambantota a free port. We are trying to become a consolidation hub. How does DHL view that in terms of going forward as a county? Singapore is a classic example which has done well in that regard?
A: I think we have yet to discuss this and it is still early days. We have to see how it progresses. Singapore had it for much longer. And from this point in time it is important as the hub to attract companies, MNCs to free port areas. If you have the required infrastructure in place then it is a matter of attracting companies to operate from there.
Q: Given issues of security and terrorism, the borders are stepping up surveillance. In this scenario do you think exporters will see lots of challenges and how can DHL make it less painful for exporters?
A: Yes, because of what is happening externally there is this challenge. Again in DHL we have to think and invest ahead of the curve. When this change has happened I explained to the authorities that we understand that security is important but here DHL have our own security system we can assure you that whatever passes though us we are following all the guidelines. So we are always in tough with the security heads and in fact we have a strong security team globally and we pull in customers to so they can explain to the authorities it is critical for them to have the shipments in time, and DHL can provide assurance. Main point is that our people are certified and trained in this area. And the security is a differentiator. It is a challenge but we look at it as an opportunity and we look to investing in this continuously.
Q: What kinds of trends do you see in the Express market? What can be expected from Express industry by customer?
A: The Express market has room for more growth in every single country so there is huge opportunity. One sub set is ecommerce shifting from B to C. Again where we focus on is really speed and security. So there is growth in that area. Going back to talk about the SMEs, they send out samples and the only way they can get it across is the kind of service that we provide.
Q: What can Sri Lankan customers expect from DHL in the next few years, particularly under your leadership? What kind of innovation service?
A: The innovation side comes through most of the time from the IT side because in the business we are in technology plays a big part. When there is technology there is high investment and our company knows it is important. A lot of work is being done to improve the back end side to make it more seamless and easier for people to go out and sell. The other thing our customers can expect is that from the service side our focus in on our customer and we spend a lot of time and investment in training and developing our people to serve our customers so we are able to make them happy.
Q: Selling Express, is it different from selling something else. What really drives it?
A: DHL Express employees are really motivated. We set these Certified International Specialists. It is a program that helps them understand the history of DHL, how it started. When people don’t understand the history they cannot relate to the company and the business, then obviously they cannot relate to the customer. That is the foundation we have. We are proud of our history. When they understand this and go out to the customer they are able to sell more passionately. And you can call in to our customer service hotline and you will be pleasantly surprised as to how they talk to the customers, the way they even engage on the phone. They let the customer feel that he or she is important. That is our culture and that is the difference between us and the competition.
Q: You spoke about what you will start offering from an industry perspective. Do you think there is room for another player to come into the Express market? I am talking about the general Asian context, what are the real key challenges?
A: There will always be competition and there will be niche players, but in the business that we are in the investment is huge. It is not easy for people to come in and say today that they want to set up ABC courier. It has taken a lot of time for us to invest and we continue to invest. Admittedly there are certain players who focus on certain key links since that is all they can do. But end of the day it is about the service that we provide. It is so important. The shipment that we send from point A to B goes through 18 checkpoints. We scan to make sure that the shipment goes from point to point and we monitor that. The shipper and the customer know exactly where it is. They are informed at all times, even at times during delays. That requires huge investment, and not many players can do that. It is not just the money; it is about the infrastructure, the process, knowing the process and the n finally the attitude. The customer has to feel that all is in place. Also the trust element, mostly customers say ‘can you DHL this for us?’ not ‘can you ship this for us?’ The brand itself says a lot and you feel safe.
Q: Going forward what kind of opportunity and growth do you see in Sri Lanka?
A: I can say that as a country we do not feel differentiated. We don’t feel Pakistan or Bangladesh is big. We all feel an equal attention and equal pressure on a positive sense. We are a growing company and we pride ourselves with our network. That is the trust that comes to us which we are able to transfer to our customers. That is the difference between us and the competition. We don’t differentiate. We invest in every country, we don’t say if a country is important or not unlike other players. We invest in every country. We maintain that in our branding.
Q: This is your first visit to Colombo, what where your first impressions?
A: It has been an amazing experience. The airport and the express way was just so amazing and how clean the country and city is. The vibrancy and the energy you feel, it is a lovely experience. In e infrastructure I see a lot of development happening. I believe Sri Lanka has huge potential waiting to be tapped. It was a great experience coming in.
Q: If Sri Lanka was looking at Singapore or Malaysia as role models, what should Sri Lanka get it right?
A: From my first impression, just seeing Colombo, you are on the right path. The aspirations are showing. Some of the buildings look familiar. The good thing is I can see the Government is investing for connectivity and that is a good sign. And for Sri Lanka it is just a matter of time. I think, who knows, you don’t need to aspire to be like Malaysia and Singapore. You have your own culture and your own unique industries.
