DHL Group’s Tobias Meyer sets the pace

DHL Group was plagued with challenges this year, like global forwarders across the industry. Amid a normalizing market, increased capacity and flat rates, the Germany-based shipping giant felt the tug of a downward pull. [caption id="attachment_57139624" align="alignleft" width="387"] Tobias Meyer, Chief Executive Officer, DHL Group[/caption] Despite challenges, DHL took the No. 2 spot on Air Cargo Next’ s Power 25 list of top freight forwarders for the second year in a row with an airfreight throughput of 1.9 million tonnes, a 9.2% YoY decrease. The forwarder fell just behind Kuehne+Nagel, which had a throughput of 2.2 million tonnes, a .5% increase YoY. DHL e-commerce now has more than 100,000 access points in Europe , and its express division is investing $192 million into facilities at Cincinnati/Northern Kentucky International Airport (CVG). The company additionally upgraded its security technology and automation at its facility at Hartsfield-Jackson Atlanta International Airport (ATL) and has been expanding its supply chain division to accommodate nearshoring, while making commitments to invest $535 million in Latin America and $348 million in Southeast Asia by 2028. Most recently, DHL has paved the way for intra-Asia trade lanes through its central Asia hub expansion , a project that began in 2004 with an investment of more than $610 million in Hong Kong. Its latest phase was completed in November and will increase capacity by 70%, according to DHL. With DHL continuing to set the pace for digitalization, safety and sustainability across all channels of the supply chain, Air Cargo Next has named DHL Group Chief Executive Tobias Meyer as its Executive of the Year. Road to CEO Meyer joined DHL in 2013 as the head of corporate development, with the benefit of an extensive background in industrial and mechanical engineering. It proved to be a year of growth for the logistics company. He was named CEO of DHL Group in May this year, stepping into the role former CEO Frank Appel held for 13 years. “DHL Group has been at the cusp of trends that have been reshaping our industry — the ebbs and flows of global trade, the ongoing rise of e-commerce, an increased focus on sustainability and digitalization,” —Tobias Meyer, CEO, DHL Group “Our business has adapted to these trends and proved its resilience and ability to consistently grow, he said. "I have been fortunate to have worked within different areas of our business, from corporate development, our corporate strategy department, to the [chief operating officer] role in DHL Global Forwarding and the leadership of our Post & Parcel division, as well as our global business services.” Meyer remained steadfast when the looming pandemic filled the world with uncertainty. “We faced unprecedented challenges and supply chains became critically important to the world’s emergence from a global pandemic,” Meyer said. “While our growth is thanks to the effort and dedication of our entire organization, I believe that these experiences have helped to prepare me and my colleagues for the journey that lays ahead.” [caption id="attachment_57133375" align="alignright" width="471"] (Courtesy/DHL)[/caption] Meyer’s rise to CEO was a journey predated with increasingly senior roles, including chief operating officer of DHL Global Forwarding , chief executive of DHL Post & Parcel and chief executive of DHL Global Business Services . When handing Meyer the reins in May, former CEO Appel said of his successor: “He is an outstanding manager with diverse and in-depth expertise, and is a proven authority on our group. I have always said I want a successor who is either better than or different from me. Tobias Meyer is both. I am convinced that he will lead Deutsche Post DHL Group on to further success.” Leading the team As a senior leader, Meyer believes spending time with customers and front-line colleagues is crucial to DHL’s success. Setting a pace and keeping the organization focused on its targets is arguably the most important job a CEO can have, Meyer said. “One needs to know the practical problems and concerns,” he said. “There is nothing basic about the basics.” Last week, Meyer visited DHL Post & Parcel’s Neuwied, Germany, facility to help sort the rush of shipments moving through the warehouse during the holiday season. “It was indeed a surprise to meet [Meyer] that day in Neuwied,” Katharina Hubner , senior expert customer experience manager at DHL Post & Parcel, posted on social media following Meyer’s visit. “To me, it is very encouraging to see that at DHL Group, people support the ops colleagues during peak season regardless of their role.” Economic setbacks With a nine-month operating profit of $4.7 billion this year, Meyer recognized that 2023 did not mirror the success of the previous two years. DHL’s third-quarter freight revenue dropped 44% year over year. Its overall revenue dropped 19% YoY . But this was expected, he said. DHL’s revenue was also in line with revenues reported industrywide. [caption id="attachment_95779" align="alignleft" width="306"] A DHL 757F sits on the tarmac at East Midlands Airport (EMA). (Courtesy/DHL)[/caption] Economic downturn, increasing jet fuel prices and the Israel-Hamas war contributed to an already bleak market outlook. While signs point to a more profitable 2024, there’s no true way to predict when the market will see an upswing, Meyer said. “The market has been characterized in recent years by abnormal spikes driven largely by capacity constraints and disruption ,” he said. “Whether we can get back to a more stable, steadily growing environment is to be seen." —Tobias Meyer, CEO, DHL Group “During my first six months in the role, the main challenge we have faced has been the uncertain economic environment and the ongoing impact that the geopolitical situation is having on this,” Meyer added. “We have had to adapt quickly, both to help our customers navigate through this uncertainty and to ensure that we take the right measures to shield our business from any adverse effects and position ourselves for growth.” When multiple global carriers halted services to Tel Aviv in October amid the outbreak of war in the region, DHL kept its regular routes to the city. For a time, it was the only major global carrier to do so. Pushing through a crisis is something that is just part of the company’s DNA, Meyer said. Embracing people and tech For Meyer, DHL’s future success will come from fostering high morale and a smart work ethic for its 600,000 global employees. “We have a robust strategy and a world-class global team,” Meyer said. “When I travel around the world I often return with admiration and awe for the positivity and passion that our people demonstrate. DHL people are doers that rise to the challenge and treat each other and our stakeholders with respect. This gives me confidence that we have all the foundations we need for success when the global economy recovers.” [caption id="attachment_87254" align="alignright" width="339"] DHL operates in its Indianapolis facility. (Courtesy/CanStock)[/caption] As the industry strives to be more efficient and resilient, DHL looks to further embrace emerging technologies and AI, Meyer said. DHL opened a 30,000-square-foot pharma facility for $1.5 million in Indianapolis, Ind., in May, installing automation in its warehouse along with canine detection for shipments and temperature-controlled smart unit load devices, the first of its kind in the U.S. for DHL. “In terms of tech advances in 2023, every one of our business units is continuously deploying new technologies — whether that is in automation and sortation technology, robotics for warehousing and fulfillment, customer-facing applications or green vehicles — and we remain committed to investing in our digital capabilities." —Tobias Meyer, CEO, DHL Group Strategy 2025 The four most important trends in the supply chain, according to DHL, are: Digitalization; Globalization; Sustainability; and E-commerce. To address these, DHL developed Strategy 2025 , a strategic plan to boost its operations in each of the four trends, with Meyer now at the helm. As a part of the initiative, DHL will invest more than $2.2 billion to modernize its IT systems and integrate new technologies, including process automation, while implementing more data analytics and training employees with the latest tech in mind, according to the company. Meyer “played a key role in developing our Strategy 2025 and aligned the group to the megatrends. ... As a result, he stands for continuity while at the same time bringing in fresh perspectives and impulses." —Melanie Kreis, CFO, DHL Group “For me, he is therefore the ideal person to continue Deutsche Post DHL Group’s successful course,” Kreis said, adding that she considers Meyer to be “a great colleague and manager.” Strategy 2025 lays the groundwork for improved growth, efficiency and sustainability by 2025, Meyer said, noting that DHL needs “to scale solutions that are available to us now.” [caption id="attachment_57132108" align="alignleft" width="344"] (Courtesy/DHL Supply Chain)[/caption] Regarding sustainability, “There is no silver bullet. We have made sizeable investments in sustainable aviation and marine fuels, more efficient wide-bodied aircraft, electric delivery vans, [compressed natural gas], biofuel and electric-powered heavy-duty trucks, and many solar panels for our facilities,” Meyer said. “And there are still significant regulatory and technological hurdles that need to be overcome before we can have absolute confidence about a zero-emissions supply chain.” IATA in 2021 announced its 2050 target to reach net zero emissions. Carbon emissions from aviation account for 2% of global emissions, according to IATA. Building a future As for the future success of DHL, Meyer plans to take a bold approach to keeping the company competitive. “We have the global footprint, leading infrastructure and the forwarding expertise to support our customers in the best possible way,” Meyer said. “We will continue to invest in our people and in technology to enhance our service further.” Meyer contributed to DHL’s success long before he stepped into the CEO role — and his job is just getting started, he said, so he’s not ready to claim victory just yet. “I think it is too early to talk of personal accomplishments,” Meyer said. “I can say that I am very proud of what the organization delivered in rather difficult times. Global trade remains very volatile and what our teams have pulled off to help customers ship their goods is often exceptional.”

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