DHL EXPANDS SUSTAINABLE DISTRIBUTION STRATEGY BY USING BICYCLES

• DHL Supply Chain's first customer is Schneider Electric, global leader in digital transformation in electric power management and automation  
• Reducing the carbon footprint of supply chains requires innovative and flexible strategies

Technological, social, and market changes are causing the logistics chains to deliver more and more value, and one of the key ones is sustainability. DHL Supply Chain, the world’s leading contract logistics provider, has developed innovative and flexible solutions that aim, precisely, at significantly reducing the carbon footprint and other environmental impacts of the supply chains. To enable the integration of its customers' logistics chain with sustainable distribution in urban centers, the company started to deliver products by bicycles - both traditional and electric ones. The Company expects to carry out an average of 100 deliveries per day using bicycles in 2020, making portions of the distribution 100% sustainable.

“At DHL, sustainability is a value that translates into global goals for reducing emissions and the relentless pursuit of strategies that cause less environmental impact. This project combines these goals with growing customer demand for more sustainable and innovative approaches," says Gildo Neto, Director of Transportation at DHL Supply Chain. The Deutsche Post DHL Group's goal is to zero its CO2 emissions by 2050.

In addition to the low environmental impact, integrating bicycles into the supply chains brings many other benefits. The first one is cost, which can be up to 50% lower when compared to traditional vehicles. The second is greater speed in traffic, followed by easier parking and no restrictions on traffic. “Traffic jams, parking/stopping locations, and traffic restrictions are currently the key challenges of urban logistics. They impact travel time, operational costs, and routing efficiency. Bicycles provide a viable, efficient response that can cover a significant range of deliveries,” explains Gildo Neto.

“Cyclists have a key role to play in this process and not only by propulsion. In this transport modal, they collect the necessary product and documentation, ride the route and contact the cargo receivers directly - it is not an ordinary freight, but a whole new approach to transportation within the supply chain. And what is most interesting is that we have noted that receivers like this type of delivery: The bicycle is more easily accommodated and the interaction with the receivers is closer. Therefore, it is a more harmonious operation that adds value to our customers,” points out Gildo Neto.

The initiative is part of the strengthening of DHL Supply Chain as a provider of end-to-end storage and transport solutions and the first customer is Schneider Electric, global leader in digital transformation in electric power management and automation. In this operation, the process begins with the transportation of products by DHL using a dedicated electric car from the Schneider Electric Distribution Center, in Cajamar, to a base in the West region of São Paulo. From there, low-volume products - parts and equipment related to electrical energy management and automation - stored in special backpacks or trunks are delivered via bicycle to distributors, retailers, and technicians in the expanded center of São Paulo.

“The initial results were very encouraging, with positive feedback from both Schneider Electric and the cargo receivers. We are considering to expand the number of products delivered this way. In addition, we are already discussing it with other interested customers in São Paulo. Next year, we will try to take this project to other capitals in the country,” concluded the Director of Transportation at DHL Supply Chain.

In addition to bike distribution, DHL offers other sustainable logistical solutions such as more efficient process management by employing data management and artificial intelligence, the use of electric cars and forklifts, reverse logistics, solar-powered Distribution Center, and even product remanufacturing services within the supply chain.