Companies in Asia Pacific Place More Importance on Green Transport Than Other Regions

Companies in Asia Pacific place more importance on green transport than other regions do, according to DHL’s latest research report on ground transportation logistics. The global survey found that a whopping 75% of respondents from the region believe electric vehicles will have a significant impact on transport in the next two years, compared to the global average of 53%. This is further backed up by 82% of respondents from Asia Pacific stating that they need help navigating legislation around mandatory carbon reporting, second only to North America.

"The Logistics Transport Evolution: The Road ahead" is a report by DHL Supply Chain, using data from research by Lieberman Research Worldwide, LLC (LRW) that was commissioned by DHL to identify the factors that are impacting ground transportation logistics and how industry is adapting to the new frontier of solutions available.

Sean Gillespie, Head of Transport, DHL Supply Chain Asia Pacific said: "Asia Pacific is a tremendously diverse region—not only in terms of geography, but also the various levels of market maturity. However, there are some factors common to many countries. These include growing urbanization, and the concerns that follow such as a need for green solutions. This is good news for us, because at DHL we pride ourselves on responsible business practices such as Mission 2050, the Group-wide commitment to reduce all logistics-related emissions to zero by the year 2050. And we believe in action, not just words: this year alone, three of our Asia Pacific markets—Vietnam, Japan and Thailand—received Green Freight Asia certification."

Green Freight Asia (GFA) is a network of Asian freight companies working together to improve fuel efficiency, reduce CO2 emissions, and lower logistics costs across the entire supply chain. It rewards companies that demonstrate a commitment to the adoption of green freight practices through its voluntary green certification program, the GFA Label program. DHL is a founding member of GFA.

Two trends will have a significant impact on transport in Asia Pacific—the rise of e-commerce, seen as a trend of significant impact in 3-5 years by 78% of Asia Pacific respondents compared with 69% globally, and the increasing urbanization of populations, deemed by 71% of Asia Pacific respondents to be key in 1-2 years, versus 61% globally. Combined, these will see ever-greater demands on supply chain service providers to manage increasing congestion and pollution, while simultaneously satisfying consumers’ service requirements.

To counteract these challenges, DHL has been investing ahead of the curve in order to serve customers better. Some examples of these investments include Transport Management Centers that provide more real-time information to improve resource optimization and end-to-end visibility for customers, as well as the opening of a Global Solutions Design Center in 2017 to better support teams of Regional Solutions Designers around the world.

Added Gillespie: "The results of the research reaffirms what we already know—technology is enabling a huge disruption of our industry, and transport in particular. AI and Big Data are seen by Asia Pacific respondents as the trend with the biggest impact in the next couple of years; in fact, 67% already incorporate them in their business in some way. I believe that DHL’s research and innovations complement this drive well—we will help our customers manage the increasingly complex and challenging issues and requirements, while optimizing their costs."

"Another added advantage we bring to the table is our global outlook—we are often able to connect suppliers’ distribution channels directly with retailers; this is thanks to our scale and synergies which our customers may not otherwise be able to leverage on their own," Gillespie concluded.

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