Markets and strategy
DB Schenker is well positioned in the relevant market segments. Our vision is to be the leading integrated transport and logistics services provider with a global reach. In order to achieve this objective, DB Schenker intends to further strengthen and expand its leading market position.
With its Primus strategy, DB Schenker intends to increase its profitability and focus its portfolio more on international growth markets. A comprehensive transformation program has been introduced to drive change in six dimensions (global market leader, customers’ first choice, employer of choice, sustainability leader, digital value generator and relentless productivity driver).
The individual business areas devise the measures and implement them. Overarching issues are managed central-ly. Examples include comprehensive programs to increase efficiency, which include implementing new management practices.
Digitalization is gaining increasing importance as a driver of disruption in the logistics industry. DB Schenker therefore has a dedicated digitalization unit. Initiatives such as data-driven business models, online platforms and technical innovations are promoted on a global scale.
Implementation of PRIMUS
Numerous initiatives were implemented in 2021:
- Global market leader: Schenker Ventures was established to drive innovations in the logistics and supply chain industry. Founders and start-ups are supported with capital and industry knowledge. The network was further expanded, for example by beginning construction of the third expansion of a logistics hub in the Dubai South Logistics District.
- Customers’ first choice: DB Schenker has expanded its global aviation network and offers its customers freight connections between America, Europe and Asia. The 43 weekly flights can carry freight with capacity corresponding to 135 large passenger aircraft.
- Employer of choice: The new Avature recruitment system is improving recruitment efficiency and the recruitment experience, simplifying the management process and reducing administrative costs.
- Sustainability leader: In cooperation with Lufthansa Cargo, DB Schenker has launched the first regular, climate-neutral freight flight from Frankfurt to Shanghai. For this service, DB Schenker uses sustainable aircraft fuel produced from biomass. This initiative saves 174 tons of fossil fuel every week.
- Digital value generator: DB Schenker’s visibility platform offers cost-effective and scalable solutions for shipment transparency. We fit assets (trucks, trailers, ships, aircraft) with sensors and link them with shipment data.
- Relentless productivity driver: DB Schenker aims to achieve maximum profitability and sustainable financial performance by constantly identifying opportunities for added value. These include a competitive cost structure based on a common cost culture and optimized cash flow management. This enables us to improve our financial competitiveness and be more successful than other logistics companies.
Development of the network
- Construction has begun on Dubai Logistics Center III (DLCIII) – a modern, green logistics hub with a storage area of 37,000 m², including 5,000 m² of mezzanine space intended for value-added services and spare part transactions. Temperature-controlled areas and zones with ambient temperatures will be included and will be operated using 100% renewable energy. This will increase the total space of DB Schenker’s mega-logistics hub in Dubai to 84,000 m² from June 2022.
- Major new activities in contract logistics:
- USA: Reverse logistics hub in Houston, Texas, together with a leading global player in the electronics market.
- Germany: Distribution activities in healthcare and storage of PPE.
- Sweden: Omnichannel operations with a high degree of automation for customers in the cosmetics, consumer and retail markets.
- United Kingdom, China: Activities for a world-leading manufacturer in the e-mobility industry.
- Global: various locations focusing on global server and cloud logistics to support leading industrial companies.
Development of the network
- Construction has begun on Dubai Logistics Center III (DLCIII) – a modern, green logistics hub with a storage area of 37,000 m², including 5,000 m² of mezzanine space intended for value-added services and spare part transactions. Temperature-controlled areas and zones with ambient temperatures will be included and will be operated using 100% renewable energy. This will increase the total space of DB Schenker’s mega-logistics hub in Dubai to 84,000 m² from June 2022.
- Major new activities in contract logistics:
- USA: Reverse logistics hub in Houston, Texas, together with a leading global player in the electronics market.
- Germany: Distribution activities in healthcare and storage of PPE.
- Sweden: Omnichannel operations with a high degree of automation for customers in the cosmetics, consumer and retail markets.
- United Kingdom, China: Activities for a world-leading manufacturer in the e-mobility industry.
- Global: various locations focusing on global server and cloud logistics to support leading industrial companies.