BRAVE COMMERCE Podcast Summary Episode: DHL’s Greg Hewitt Shares Insights on Global Logistics and Industry Transformation Release Date: December 24, 2024
Introduction to the Episode
In this enlightening episode of BRAVE COMMERCE, hosts Rachel Tipograph, Founder & CEO of MikMak, and Sarah Hofstetter, President of Profitero, engage in a deep conversation with Greg Hewitt, the CEO of DHL Express in the United States. Recorded amidst the bustling energy of Cyber Monday, Greg offers a wealth of knowledge drawn from his over three-decade-long career in the logistics and shipping industry. The discussion delves into the transformative changes in eCommerce, global logistics, sustainability efforts, and the future trajectory of DHL amidst evolving market dynamics.
Greg Hewitt’s Remarkable Career at DHL
Greg Hewitt's enduring tenure at DHL is both impressive and inspiring. Starting his journey as a salesperson in Canada, Greg's dedication and adaptability saw him traverse continents—from Europe back to North America—culminating in his current role as CEO of DHL Express in the U.S. When asked about his long-standing commitment to DHL, Greg attributes his loyalty to the company's culture of rewarding hard work and embracing opportunities beyond one's comfort zone.
Notable Quote:
"If you work hard, show great loyalty and produce results, opportunities open for you."
— Greg Hewitt [05:59]
Evolution of the Shipping and Logistics Industry
Greg provides a comprehensive overview of the monumental shifts in the shipping and logistics sector over the past 30 years. Reflecting on the pre-digital era, he contrasts the cumbersome processes of the past with today's technologically driven efficiency.
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Adoption of Technology:
- Manual to Digital: Initially reliant on manual paper waybills and tedious tracking, the introduction of online shipment generation and data transfer revolutionized operations.
- Track and Trace Systems: The advent of scanners and real-time tracking empowered both DHL and its customers, enhancing supply chain visibility and reducing manual workloads.
Notable Quote:
"The advent of scanners and a lot of track and trace information... allowed people to take control of their supply chain."
— Greg Hewitt [07:54] -
Impact of the Internet and E-Commerce:
- Globalization: The rise of the internet facilitated unprecedented globalization, enabling the seamless movement of goods across borders.
- COVID-19 Surge: The pandemic accelerated eCommerce growth, compelling even hesitant consumers to embrace online shopping, thereby increasing shipping volumes.
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Automation and Routing Technologies:
- Standardized Routing: Tools like Google Maps and Waze optimized courier routes, enhancing efficiency and delivery accuracy.
- Customer Empowerment: Enhanced tracking allowed customers to better plan for deliveries, reducing wait times and improving satisfaction.
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Artificial Intelligence (AI) and Future Innovations:
- Greg anticipates AI's transformative potential in areas like billing and customs clearance, envisioning dynamic problem-solving capabilities that could streamline complex logistics processes.
Notable Quote:
"In the months to come, an AI response that's capable of kind of the dynamic thought around problem resolution for shipments."
— Greg Hewitt [01:10]
DHL’s Sustainability Initiatives
Sustainability remains a pivotal focus for DHL, with Greg outlining the company's multifaceted approach to reducing its environmental footprint:
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Electrification of Fleet:
- Transitioning to electric vehicles is a cornerstone of DHL's strategy to eliminate carbon emissions, particularly in Europe where significant progress has been made.
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Sustainable Aviation Fuel (SAF):
- Recognizing aviation's substantial impact, DHL has committed $7 billion to SAF, aiming for climate neutrality by 2050. This includes participation in a SAF safety pool to advance sustainable flying practices.
Notable Quote:
"The single biggest challenge we face is the planes themselves... start to recognize the biggest move we can make around sustainability is to get into sustainable aviation fuel."
— Greg Hewitt [16:14] -
Green Packaging:
- DHL is transitioning to recyclable packaging materials and exploring innovative solutions to minimize packaging waste.
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Go Green Plus Program:
- Launched to enable customers to carbon offset their shipments, this cooperative initiative leverages collective purchasing power to invest in sustainability projects, providing transparent, science-based reporting.
Notable Quote:
"We've launched a program called Go Green Plus which is an opportunity for our customers to carbon inset their shipments and join us in the pool."
— Greg Hewitt [16:14]
Greg emphasizes that sustainability is a collaborative effort, engaging both suppliers and customers to achieve meaningful environmental impact.
Future Outlook for DHL and the E-Commerce Landscape
As the industry braces for continued evolution, Greg shares his insights and strategic outlook for DHL:
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Post-Pandemic Normalcy:
- While the shipping volumes saw unprecedented spikes during the pandemic, recent trends indicate a return to steady growth reminiscent of pre-pandemic levels.
Notable Quote:
"What we normally do is... we usually do... a normalized year-end."
— Greg Hewitt [24:04] -
B2B and B2C Dynamics:
- Strong consumer eCommerce remains a positive indicator, but Greg highlights potential shifts in B2B dynamics as larger companies seek to diversify their supply chains, possibly impacting DHL’s traditional volume streams.
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Supply Chain Diversification:
- With increasing procurement power, large enterprises may opt for direct airline purchases or partner with local carriers to enhance profitability, presenting both challenges and opportunities for DHL.
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Regulatory Environment:
- The uncertainty surrounding tariffs and trade policies under the new administration poses significant implications for international trade, an area where DHL’s global expertise will be crucial.
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Supporting Small and Growing Businesses:
- DHL aims to focus on nurturing small businesses poised to scale, leveraging their needs for reliable shipping solutions without the economies of scale enjoyed by larger corporations.
Personal Insights and Greg’s Bravest Move
Beyond corporate strategies, Greg shares a personal anecdote underscoring his professional courage:
Moving to Europe: Greg recounts his bold decision to relocate to Brussels, Europe, despite language barriers and initial loneliness. This move proved pivotal, leading to greater opportunities and his eventual rise to the CEO position.
Notable Quote:
"Sometimes you've got to pull yourself out of your comfort zone. Sometimes you've got to go places where maybe it's not more money or necessarily... it was just different."
— Greg Hewitt [27:50]
His experience highlights the importance of adaptability and embracing challenges to achieve career growth.
Conclusion
This episode of BRAVE COMMERCE offers invaluable insights into the logistics and shipping industry's past, present, and future through the lens of DHL’s Greg Hewitt. From technological advancements and sustainability initiatives to strategic foresight in a rapidly changing global market, Greg's expertise provides listeners with a comprehensive understanding of the forces shaping eCommerce and global trade. His personal journey further inspires professionals to embrace bold decisions and adaptability in their careers.
For those interested in more stories of seasoned executives, upcoming episodes feature leaders like Matt Graham, CMO of Mars Food, and Natalie Gerstein, President of L'Oreal, both boasting over two decades at their respective companies.
Listen to the full episode on Acast and stay tuned for more episodes of BRAVE COMMERCE, where industry leaders share tips worth millions in sales and discuss navigating the latest consumer and retailer dynamics in eCommerce.