"DACHSER places significant importance on the rapidly growing Asia-Pacific region" 

CEO Burkhard Eling and Roman Müller, Managing Director DACHSER ASL APAC, gave an interview to the Thai magazine "Thansettakij". They spoke about the importance of the Asia-Pacific region for DACHSER, the key trends that will determine the future of logistics, and how DACHSER, as a European company, intends to tap into global markets.

Read the full article “Dachser Supports Thailand as a "Regional Logistics Hub," Highlighting Transformative Technology” (Thansettakij, 23 July 2024) here:

Burkhard Eling, CEO of DACHSER
Burkhard Eling, CEO of DACHSER

Burkhard Eling, CEO of Dachser SE, the German logistics giant, highlights positive factors contributing to the continuous growth of the Asia-Pacific logistics market. The company is ready to invest and use Thailand as a service base for customers in the region, emphasizing that AI and IoT technologies will enhance competitiveness and transform the future of logistics.

During his recent visit to Thailand, Burkhard Eling, CEO of Dachser SE, a global logistics and warehousing service provider with a major market in Europe and headquartered in Kempten, Germany, along with Roman Mueller, Managing Director for the Asia-Pacific region, gave an exclusive interview to "Thansettakij" regarding Thailand's potential as a regional logistics hub. They discussed opportunities and challenges from Dachser SE's perspective, a company founded in 1930 with more than 380 branches in 43 countries worldwide, including Thailand, operating under Dachser (Thailand) Co., Ltd.

"Logistics" is one of the eight key industries under the Thailand Vision "Ignite Thailand" announced by the government in February 2024. The goal is to elevate Thailand to become a global industrial hub and ensure a sustainable economic future. In terms of the logistics industry, Thailand is committed to becoming a regional transportation hub through massive infrastructure and transportation system development, connecting the Western and Eastern worlds.

"We started primarily from Germany and the European region before expanding globally, with our first branch outside Europe in the United States, which remains a crucial market. Currently, Dachser places significant importance on the rapidly growing Asia-Pacific region, and we aim to generate approximately 10% of our total revenue from the Asian market," stated Dachser's CEO, explaining the rationale behind the internal workshop held in Bangkok this past June.

Logistics Business Trends: Technology is the Answer

Dachser's executives view the global logistics business landscape as being revolutionized by advancements in artificial intelligence (AI) and the Internet of Things (IoT)—a network of interconnected devices communicating through the internet and facilitating interactions between devices and cloud systems. These technologies will be key drivers in transforming the logistics industry. The sector will also be "boosted" by the booming e-commerce market. Additionally, there will be changes and enhancements in logistics driven by the concept of sustainable business practices and the adaptation of supply chains.

Focusing specifically on the Asia-Pacific region, it is evident that several positive factors are driving the growth of the logistics business, including:

- The significant expansion of e-commerce.

- The widespread and rapid adoption of digital systems in supply chains.

- The specific and optimized management of supply chains to meet the diverse demands of different markets.

Thus, the key trend shaping the future of the logistics business, both globally and regionally, is the advancement of technology, which will be integrated with sustainable business practices. However, the dynamics in the Asia-Pacific region will progress rapidly due to high market growth and ongoing investments in development processes.

In such a dynamic context, the expansion of the logistics business in the Asia-Pacific region presents both significant opportunities and challenges. Dachser, as one of the leading European firms, is ready to fully enter the Asia-Pacific and global markets.

"We have three pillars in our business: a global network of offices and warehouses, a comprehensive and interconnected IT system, and our personnel, which includes our corporate culture. These three pillars have made us a strong organization for a long time and will continue to support our growth," said Burkhard Eling, CEO of Dachser.

Roman Müller, Managing Director DACHSER Air & Sea Logistics APAC
Roman Müller, Managing Director DACHSER Air & Sea Logistics APAC

Supporting Thailand to Elevate as a Transport Hub

According to the 2023 annual financial report, Dachser transported a total of 77.4 million items, weighing over 40.0 million metric tons, generating revenue of 7.1 billion euros. The Asia-Pacific region is identified as a high-growth and high-potential market. In Thailand, the company currently employs 88 staff members (out of nearly 34,000 employees worldwide) across four offices, making it one of Dachser's key markets in the region.

Roman Mueller, Managing Director, Asia Pacific added that Dachser provides global transport logistics, warehousing, and customized services in two business fields.

- Dachser Air & Sea Logistics provides air and sea freight services, including warehousing services.

- Dachser Road Logistics which consists of two business lines - Dachser European Logistics and Dachser Food Logistics.

In addition, the company’s extensive shipping networks and integrated IT systems support intelligent logistics solutions worldwide. Dachser also offers contract logistics services and industry-specific solutions such as:

DACHSER Automotive Logistics - services to meet the complex requirements of supply chains in auto manufacturing sectors around the world, including Thailand.

DACHSER Fashion Logistics - innovative transport systems Roll&GOH and ProFashional Box bring customer’s fashion goods reliably and undamaged to their destination on time.

DACHSER Chem Logistics - access to all procurement markets and a track record of exceeding stringent safety and quality standards set for chemical industry players globally.

DACHSER Life Science & Healthcare Logistics - vast experience and expertise to support temperature-sensitive, urgent shipments complying with complex regulatory demands.

The Key is to Provide Intelligent Global Logistics Solutions

"There are numerous challenges in this business. As you can see, there are wars and conflicts in various regions, such as the Middle East and the Red Sea, which drive up transportation costs. During the COVID pandemic, both supply chains and production chains were severely impacted. We collectively call these uncertainties. But our role as a service provider is to manage these uncertainties, enabling our customers to predict and plan their operations with the data and solutions our system provides. This makes their work easier, more reliable, and smoother even amid such situations. As Mr. Eling mentioned earlier, we have three pillars that ensure customer confidence and help them navigate these challenges," said Mueller.

Dachser's executives also commented on Thailand's Land Bridge project, stating that it is an interesting initiative that the company is closely monitoring. Drawing from their experience in Europe, they noted that projects linking transportation and public travel bring significant benefits and economic value. For example, the Channel Tunnel (connecting the UK with France) and the underwater bridge connecting Denmark with Sweden, not only reduce travel time but also provide immense commercial, trade, and transportation benefits.

As a logistics service provider, Dachser believes that during the development phase of this project, it is crucial to be prepared. Being ready to act quickly and efficiently, in alignment with any emerging situations or changes, is essential.

Dachser entered the Thai market in 2008 and acquired 100% of its Thai subsidiaries in 2014. The company opened a sales office in Chiang Mai in 2023 to extend its services in the north. Other Dachser offices are located in Bangkok, Suvarnabhumi Airport and Laem Chabang.

Dachser currently employs more than 80 people and in terms of volume, it handled 3,642 tons of air freight, shipped 11,714 TEUs of sea freight, and moved 17,593 shipments in the 2023 financial year.

While automotive is a focus sector for Dachser Thailand, it also sees good opportunities in healthcare, fashion, and more. Given the evolving needs of customers, Dachser is committed to introducing new solutions and innovations to improve warehousing and cross-border trucking.

Dachser's executives added that sustainability is another priority and the company has implemented new measures to achieve positive results. For example, they are considering increasing the use of electric trucks for daily operations.

Bangkok, Thailand
Bangkok, Thailand

Digital Innovation Transforms the Future of Logistics

In line with the company’s aim to be “the most digitalized logistics provider in the world”, Dachser has launched many innovative IT infrastructure and customer solutions including:

The DACHSER platform, developed in house, offers an easy-access, one-stop solution for all means of transport, integrating all aspects of the logistics process into one digital experience, including quotation, booking, trace & trace, and document handling. Customers enjoy unparalleled transparency, real-time tracking, short response times, and supply chain optimization benefits.

Precise tracking is powered by Dachser’s Advanced Indoor Localization and Operations (ILO) technologies that automatically create and continuously update a digital twin of packages, assets, and workflows in a transit terminal.

Dachser expects predictive analytics tools for demand forecasting, route optimization solutions for transport planning, and inventory management systems for warehouse operations to be one of the most in-demand solutions among its Asia Pacific clients.

Dachser is also renowned for the Swap Body concept which was developed by Thomas Simon (Thomas Dachser’s son-in-law). Simon adapted maritime freight models, systems, and specifications to create standardized freight containers for easier “swapping” between vehicles. Over time, the concept has been refined to develop sophisticated containers that can be used for road transport to accelerate Dachser’s growth and revolutionize global logistics.

The executives from the German logistics giant also discussed the concept of sustainability, which current business operators must always consider. Sustainability is another focus area. Dachser adopts strategies and solutions to reduce emissions across its logistics and supply chains through in-house and collaborative projects. Initiatives are updated to align with global trends/regulations and three focus areas are:

- Renewable energy and e-mobility - using e-vans, bikes, and trucks where possible.

- Emission-free delivery in 13 European cities - using e-vehicles for last-mile deliveries.

- Adaption to regulatory frameworks - adopting proactive measures to align with future regulations and policies.

 

https://www.thansettakij.com/business/economy/602408

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Contact Vernice Chu Communications Manager Asia Pacific