**Asia Pacific**: DHL is rapidly adopting AI, robotics, and digital tools across its supply chain network in Asia Pacific to enhance resilience and efficiency. Despite challenges like data integration and cybersecurity, innovations like Connected Control Towers and generative AI are reshaping logistics amid ongoing pandemic-driven disruptions.
A report by Forrester indicates that the future of supply chains hinges on building resilient and sustainable networks, a shift catalysed by the global pandemic. The urgent need for platforms capable of rapid, collective responses to demand fluctuations and supply bottlenecks has compelled organisations to rethink their strategies. This sentiment is mirrored in a study by the Kenan Institute, which highlights how the disruptions caused by the pandemic required businesses to reassess supplier locations, lean operations, and risk assessment frameworks.
DHL, a major player in logistics, is responding to these changes by accelerating the adoption of technologies that enhance operational resilience. Mihaela Isac, Chief Information Officer for Asia Pacific at DHL Supply Chain, discussed transformative innovations reshaping the logistics landscape as the sector gradually recovers from the pandemic.
The swift embrace of technology has seen over 85 per cent of DHL Supply Chain’s facilities in the Asia Pacific implementing digitalisation projects. Isac remarked, “From a technology standpoint, the pandemic accelerated the adoption of digital solutions within the supply chain in Asia.” This transition has optimised operations, improved decision-making, and increased supply chain agility. In particular, the implementation of artificial intelligence (AI) is seen as crucial in transforming inventory management, demand forecasting, and delivery route optimisation, with data analytics providing real-time visibility throughout the supply chain.
Isac outlined various technology deployments at DHL, such as Connected Control Tower solutions. These systems gather and analyse data from multiple sources, enabling faster and more effective decision-making. Predictive analytics allows the company to foresee potential disruptions, optimise inventory levels, and proactively adapt supply chains. Isac stated, “Real-time visibility over the supply chain also allows for the optimisation of routes, reduced fuel consumption, and increased operational efficiency.”
However, the rapid shift to these technologies has encountered significant challenges. The pandemic-induced lockdowns and workforce constraints led to increased automation of manual tasks, yet Isac admitted that “it is encouraging to see the shift, but it also had challenges.” Issues like data fragmentation, integration difficulties with legacy systems, and varying data structures across regions have posed hurdles for the logistics giant.
Another concern relates to security, as the proliferation of digital infrastructures has raised the risk of cyberattacks. Isac acknowledged the complexities involved, stating, “With more systems and automation in place, it is a complex environment to manage. Customers want to understand what we have in place to keep their operations safe.”
To foster a collaborative supply chain ecosystem, Isac highlighted the importance of trust among various stakeholders. Innovations such as AI and machine learning are crucial for dynamic supply chain management, as they allow for real-time adjustments based on data analysis. She remarked, “AI-powered tools and machine learning algorithms enable us to dynamically adjust supply chain decisions, such as routing shipments or scheduling productions.”
DHL is also utilising generative AI (Gen AI) to enhance internal processes, including customer data analysis and proposal optimisation. The company is piloting digital twins—virtual models that simulate real supply chain scenarios—which facilitate real-time monitoring and identification of inefficiencies.
Among innovations, the integration of robotic systems has notably transformed operations within DHL. Isac disclosed that over 2,000 robotic systems are now operational in Asia, streamlining tasks like order picking and inventory management. “This allows our human workforce to focus on more value-adding areas instead of performing manual tasks,” she stated. Such automation not only addresses labour shortages but also aligns with customer expectations without necessitating increases in workforce numbers.
Despite these advancements, challenges in technology adoption persist. Many major partners may not yet be prepared to embrace new technologies, and a substantial number of businesses require digital upgrades to meet demands for efficiency and sustainability. Furthermore, Isac pointed out that a lack of skilled experts in new machinery and automation systems complicates the process.
Isac emphasised the need for a robust digital training framework, aimed at empowering teams to efficiently leverage new technologies. “By blending upskilling with hands-on experience, we empower our teams to confidently leverage digital tools,” she explained.
Looking towards 2025 and beyond, Isac envisions AI continuing to propel technological advancements, potentially leading to smarter, more interconnected supply chains. She remarked, “The path will continue with greater automation and robotics deployed across operations,” underscoring the importance of innovation and customer-centricity in future investments.
In summary, as organisations like DHL navigate the evolving logistics landscape, the integration of digital technologies, AI, and collaborative practices will be pivotal in building resilient supply chains capable of responding to global dynamics.
Source: Noah Wire Services
Subscribe to Industry Updates
