DHL-Sinotrans, the leading express company in China, recently announced the change of its corporate wear across the country. As the move unfolds, not only DHL-Sinotrans’ vehicles and offices are clearly identifiable at first glance as part of DHL, but those employees who have contacts with customers will be also as well. With a brand-new look, DHL-Sinotrans is bracing for new developments in China’s express and logistics industry.

The year 2005 witnessed a robust growth of China’s air express industry. It was also a crucial year for DHL to implement its China growth strategy, as it was characterized by the company’s remarkable achievements in entrenching its market presence in China through consistent and relentless efforts in sustained growth, investment in infrastructure, air networks, products and services, IT solutions and technologies, as well as human resources training.

Continued infrastructure investment to consolidate network advantage

In 2003, DHL-Sinotrans announced a US$ 200 million investment plan, which marked the beginning of an investment spree by international express players in China. According to Mr. Jerry Hsu, President of DHL Express for Greater China and Korea, 70 per cent of the plan has been completed and the remaining program is expected to be finished in one and half years.

DHL has built up the most comprehensive air express service network in China, which boasts 56 branches, 4 international gateways in Beijing, Shanghai, Guangzhou and Shenzhen, and 7 direct flight gateways in Qingdao, Dalian, Chengdu, Wuhan, Xiamen, Fuzhou, and Xi’an, covering 318 cities across the country. Strong as it is, DHL-Sinotrans has always made network a strategic priority. Indeed, constant quest for improvement is crucial to the success of a company that prides and excels itself in details.

On November 25, DHL announced an upgrade of its Pudong Gateway, in response to the growing customer demands in the Yangtze River Delta area. On December 1, the company announced that its Guangzhou Gateway at the new Baiyun Airport was to be inaugurated soon, a move to make DHL the first international express company to deploy operations at the new airport, while offering greater potential for the growth of foreign trade and logistics industry in the Pearl River Delta region. Both major investments have highlighted DHL’s strategic vision of keeping up with the growth of the Chinese economy.

In the meantime, following the opening and upgrading of nine facilities in major cities like Beijing, Shanghai and Guangzhou in 2004, DHL–Sinotrans has successfully upgraded in 2005 another 10 service centers of its branches in the cities of Qingdao, Shanghai, Suzhou, Hefei, Xiamen, Shenyang, Xi’an, Jinhua, Wenzhou and Zhongshan, with the overall daily inbound/outbound shipments of these facilities have almost doubled.

More direct flights to perfect air network in China

DHL-Sinotrans boasts an agile and thorough air operation in China, which involves 550 commercial flights per week, building its strong air capacity second to none. Besides, DHL connects China with other major markets of the world through several direct flights, which serve as an effective complement of it air operation in China. The direct flights greatly improved DHL’s air capacity and efficiency in China.

In April 2005, DHL announced the introduction of two new direct express services between Beijing and Hong Kong and between Shanghai and the United States. Another direct express service between Shanghai and Tokyo was in operation in late November. These are the new steps DHL has taken since the initial operation of the direct flight between Shanghai and Hong Kong in June 2003. These major moves has built this competitive air operation model to an unparalleled extent.

“The booming of China’s economy stimulated and complicated the market demands of air express service, which calls for quicker response and more flexibility in operation. DHL-Sinotrans features in China the ability to coordinate and benefit from ready air capacities, which allow us to meet the growing customer demands by operating direct flights in critical markets.” said Mr Wu Dongming, Managing Director of DHL-Sinotrans.

More nuanced services in constant quest for perfection
DHL enjoys a comfortable lead in the Chinese air express market with a market share of almost 40 per cent. However, instead of resting on its laurels, the company has always focused its effort on offering more nuanced services and developing new products, while committed to meeting the growing expectations of customers for logistical services through a wider range of products and more customized services.

Import Express is a fast and reliable service that allows customers to import goods from overseas suppliers. In 2004, DHL saw a 30% year-on-year growth for Import Express in Asia Pacific. The service was introduced to China in 2000.With Import Express, customers who pay for some of their freight costs within a non-integrated transport chain can now enjoy the simplicity and control of one point of contact, one fixed price, and one invoice for all their import requirements. In 2005, with DHL extended the availability of Import Express service to 218 countries and territories around the world, DHL-Sinotrans strengthened its marketing campaign and facilitated the access to IMP service of customers in China.

In an effort to meet the emerging demands for express logistics in the Chinese market, DHL has scaled up its investment and services by establishing the largest express logistics centers in the country in Shanghai and Beijing. As DHL’s businesses further grows, a service system comprising three express logistics centers, 16 strategic backup centers and a network of bonded and non-bonded warehouses as well as a variety of customized express logistics solutions is in the offing.

DHL’s efforts to enhance services capabilities and quality are seen in all aspects of its business operation. Three facilities, namely, the Pudong Gateway, Suzhou Service Center and Suzhou New District Service Center have successfully passed the TAPA audits and gained TAPA ‘A’ Certification.

IT innovation and professional training with a view of achieving faster growth

Since technology and professionals have always been the drivers of the advancement of express logistics industry, DHL-Sinotrans spares no efforts in making the most of both.

By leveraging its profound understanding of express service and extensive IT resources and technology, DHL-Sinotrans offers a wide range of express services and electronic commerce solutions, such as Easyship, Web Shipping, e-Track, and SMS Tracking. These innovative IT solutions have endued new meanings to the traditional express service.

In addition to being an important step toward improving services in the Chinese market, the National Quality Control Center, set up in Beijing in July, is seen to a greater extent as the most outstanding integrated utilization of high technology. The center enables dynamic management of flight information as well as 24x7 real-time monitoring of all flight information and status information from the time that the shipment is picked up from the customer’s home or office to the final delivery.

Human resources are the key to industry growth. DHL has launched a talent strategy by setting a logistics management school in Shanghai, a move that is much watched given the lack of logistics professionals and demonstrates DHL’s long-term commitment to growing in tandem with the Chinese market and its vision for the future development of China’s logistics industry. Through multi-level training courses, the school will not only meet the demands for DHL services in China and the Asia-Pacific, but also elevate the professional level of the entire logistics industry through a proactive talent strategy. This will also play an important role in the professionalism of China’s logistics services.

The year 2005 is marked by DHL’s endeavors to entrench its presence in the Chinese market and its remarkable achievements in this regard. In 2006, when China opens its logistics market to the world, DHL-Sinotrans will enjoy its twentieth anniversary. As the company rings out the old year and into a new one, a uniform-change campaign is under way. Combining sleek design, exquisite craftsmanship and complete functions and styles, the new DHL corporate wear is truly refreshing. The glaring red and shiny yellow forebodes the fullest readiness of DHL for the opening of the market. Building on its accomplishments in enhancing leadership in China in 2005, DHL-Sinotrans is set to attract greater attention in 2006.