Delivering change

Delivering change

DHL Supply Chain CEO Oscar de Bok is leaning into the upheaval caused by the pandemic to explore the approaches that will deliver a better future.

Oscar de Bok, CEO, DHL Supply Chain Photo: www.cornelisgollhardt.de
Oscar de Bok, CEO, DHL Supply Chain Photo: www.cornelisgollhardt.de

Oscar de Bok is hungry for change. He always embraces opportunities, which has led him to take leading positions with DHL Supply Chain in many parts of the world.

Since 2019 he has been leading the company's global operations as chief executive officer, while also serving on the board of management of Deutsche Post AG, the world's leading postal and logistics company operating under the trade name Deutsche Post DHL Group.

His success is not merely the result of his three decades of accumulated experience in the logistics industry. It also reflects his relentless curiosity and his excitement about the industry's rapid evolution.

"What is exciting in our business, specifically in contract logistics, is that we are part of the business of our customers," said Mr de Bok, who is currently based in Germany.

"One day, you're in the middle of what's happening in the automotive sector. The next day, you're in the middle of what's happening in the healthcare sector, and the same for the technology sector and consumer retail. While we stay close to our customers, we also stay close to the changes that are needed tomorrow."

Supply chains are facing many challenges arising from the changing global trade landscape and new approaches to manufacturing. The rise of globalisation and e-commerce has also raised consumers' baseline expectations for fast delivery, pushing businesses to seek new logistics solutions.

Digital acceleration and the emergence of new technologies such as artificial intelligence and automation are helping companies operate more efficiently and effectively, and leaving behind many that fail to adapt.

These trends were already clear before the Covid-19 pandemic struck. The massive disruption it has caused to the world's supply chains further emphasised the need for the logistics industry to be more adaptive and faster in responding to change.

For the Dutch executive, who took over the CEO position just a few months before Covid emerged, this is a time that is making the industry even more interesting.

"Changes in supply chains are going about five to six times faster than 10 years ago. That has to do with various aspects. One, obviously, is that the agility of supply chains is far higher than it was in the past," Mr de Bok tells Asia Focus.

"Twenty years ago, you could make an investment in an automated facility and build a business case for how supply chains would be set up for a customer in the coming 10 years. That is impossible today because there will be many changes in those 10 years. Agility, speed and flexibility are what supply chains need today."

Supply chain activities, he observes, are far more visible to businesses and the public than they were 10 years ago. A lot more investment is going into the sector, some of it from potentially disruptive startup ventures, meaning innovation is moving way faster than it used to, and customers have more choices of solutions.

This rapid evolution is challenging Mr de Bok and his organisation to adapt by integrating new technologies into the business, and by empowering employees to move fast and go beyond customers' expectations.

Oscar de Bok, Chief Executive Officer at DHL Supply Chain; Post Tower Bonn; July 2020 Oscar de Bok, CEO, DHL Supply Chain www.cornelisgollhardt.de

GROW WITH THE COMPANY

Mr de Bok was attracted to the logistics industry partly because of his background growing up in a main port city in the Netherlands, where he had a close-up look at how the movement of goods underpins global trade.

He also likes the practical aspect of work in the logistics industry. He likens it to being a consultant, with the important difference that he can act on the advice he gives his customers. It appeals to his sense of curiosity that he can dive into many companies and their strategies and try to make them work.

He joined Deutsche Post DHL Group in 1999 after it acquired the Dutch shipping company Nedlloyd, where he had worked in various roles, including sales and project management. He rose to be managing director and chief executive officer of DHL Supply Chain in several countries and regions before taking charge of global operations.

As a member of the parent organisation's board, he is also one of the key people driving the company's "Strategy 2025" aiming for long-term profitable growth. This involves accelerating digital transformation and responding to globalisation, digitisation, e-commerce and sustainability as they shape the future of the logistics industry.

In recent years, the company has invested in several target technologies to achieve this strategy. One of the most significant investment areas is big data analytics, which Mr de Bok sees as a key to helping the company and the customers make fast decisions and optimising the supply chain process.

For example, the company offers tools, including MySupplyChain, that allow customers to access warehouse and transport information and other real-time data through a single entry point.

He has observed the urgent need for advanced data analytics during the pandemic. Businesses must cope with supply chain disruptions by making decisions instantly on how to change the flow of goods, from inputs of production materials or shipments of finished products to customers.

When combined with the use of collaborative robots -- another key investment that increases picking efficiency and speeds up the delivery process -- data analytics helps keep DHL staff safe while they are working in the company's facilities.

The technology helps his team to decide which supply chain design and staff shift pattern is the best in reducing contact between people.

"Those investments were already decided on and were happening," Mr de Bok points out. "When the pandemic came, we needed a lot of that. We started to accelerate those projects [on data analytics] with a speed that I didn't imagine would be possible.

"Obviously, in logistics, we sit on data. Our ambition is to be able to tell our customers what will happen, and which products will sell tomorrow, rather than our customers telling us what will happen," he adds.

DHL Supply Chain, says Mr de Bok, offers competency-based training to its employees to help them continuously evolve and grow or become certified supply chain professionals. It also provides a certified go-green specialist programme, in which staff learn the basics of sustainability, what they can do to achieve it, and how to make changes in the organisation and for customers.

Having the opportunity to grow also encourages many employees to stay with the company for a very long time, including Mr de Bok who has been with DHL for more than 20 years.

"I've had the unique opportunity to work in five different countries, but also in very different cultures. That has made it super interesting to continue to grow with the company," he says.

"I like being excited about the people you work with, being excited about the culture you work in. But also, I have the possibility to continually grow and develop. Even today, I've learned every single day. As long as that is the case, then that gets me excited and motivated to move further."

CONSTANT COMMUNICATION

One of the biggest lessons learned for Mr de Bok during the pandemic has been the importance of constant communication within his organisation.

Despite travel restrictions, the company must continue its operations to keep society going. Supply chains must keep running and must be constantly fine-tuned to ensure that food continues to fill up supermarkets, medicines and medical equipment reach hospitals, or electronic products are delivered to students and workers studying and working at home.

For a logistics operator, that requires people to be physically working at its facilities. Finding the right process and procedures to ensure their safety is as essential as keeping the supply chain moving, and that requires communication among staff across the organisation.

Along with communicating via video conferences, DHL uses a mobile app called Smart Connect, allowing employees to interact with one another while staying up to date on company news and information.

Though Mr de Bok misses having face-to-face meetings with his staff and visiting the facilities, he has found that he has been interacting with more people around the globe even more through online communication channels.

In a single day, he notes, he could have a town hall with thousands of his staff in Japan in the morning and the US in the evening. That would normally require three weeks of travel.

"What I've learned over the past one and a half years is that we have been able to actually communicate a lot more, a lot faster and broader," he acknowledges.

"That has helped us to engage more with lots of our people and helped us to be faster in decision-making. It has helped us to empower our management more. Overall, we've actually been able to move faster than before."

Covid vaccine distributions is one of the tasks that has required the company and its staff to move fast, and it's something Mr de Bok is excited to be a part of.

Deutsche Post DHL Group is one of a handful of global logistics companies with the cooling and transport capacity required for vaccine storage and transport. Since late 2020, it has partnered with pharmaceutical companies and shipped vaccines to many destinations globally, including across Europe and to many low- and middle-income countries joining the Covax initiative.

Deutsche Post DHL Group, he says, has long been on the front lines as a company with a clear strategy for sustainability.

It has committed to zero-emissions logistics by 2050 and pledges to invest 7 billion euros in climate-neutral logistics by 2030. The investment will go to building upgrades, a shift to e-vehicles and alternative aviation fuels.

The company also integrates environmental, social and governance (ESG) considerations in its sustainable business indicators, which measure its progress toward sustainability in many areas.

"ESG is about stakeholder management. ESG is not only about emissions. It's also about people, and I think that's a very important element," Mr de Bok says. "It touches the part of making sure that our people continue to develop with the company."

DHL Supply Chain has 150,000 employees worldwide, while the total for Deutsche Post DHL Group is 570,000. For Mr de Bok, this means that not only is the company responsible for a lot of people, but also it is part of many communities that it must be responsible for.

One of those responsibilities is to ensure diversity, inclusion and opportunities for all staff while ensuring that they understand the organisation's direction and purpose.

"I'm not just moving boxes. I'm actually helping somebody get cured in a hospital. I'm making sure that the kids can go to school, or they get healthy food at home," he points out.

"We provide the possibility for people to grow. We have many examples of people who arise in our organisation with limited education."

OPEN UP AND LISTEN

Leading the DHL Supply Chain team in Asia between 2008 and 2016 was one opportunity that inspired and motivated Mr de Bok. Though he was mainly based in Singapore, he travelled across the region to meet his team and customers.

"I'm a very curious person. That's probably why I lived in Asia for eight years, but also, partly [because] what I have in common with Asian culture -- people are curious for change rather than hesitant about it. That's what I've always noticed interacting with our Asian team," he recalls.

"Those eight years taught me and further stimulated me to be open for change, not only open for change but also to be hungry for change. On that basis, it makes sure you adapt accordingly."

Asian people's openness inspired him to learn and to adapt fast. One lesson he learned first-hand came from Thailand's response to the 2011 floods -- the worst in decades. He saw the ability of people to move on, learn from it, then build further in the aftermath of the disaster.

Living in Asia and elsewhere, he has come across different perspectives of people who taught him to listen and value diversity and inclusiveness in his leadership.

"It's important that you're open and you are doing something with the culture you're working in," he says. "I think that has helped me grow over the years. I've always seen that as a very positive challenge."

Away from work, Mr de Bok enjoys travelling with his family, and he's a keen participant in water sports.

"That's probably my Dutch heritage, and so that's a way I can actually relax," he concludes with a smile.

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