Efficiency, Speed and Status: An Interview with DHLs Victor Guinasso
Q: How long have you been the CEO at DHL? Can you briefly describe your role there?
A: I've been with DHL since early 1999. I am CEO for DHL Airways, Inc., which is the U.S. arm of the DHL delivery network. I have responsibility for all operational and financial actions for this company.
Q: DHL has the world's largest international air express network. How has technology contributed to your success, and more specifically, the enhancement of your tracking system?
A: I think that clearly, in today's world, information and shipment status information are as important to our customers as the reliability of transit. I can not emphasize enough the importance of the information side. What we have attempted to do at DHL is utilize the latest supply chain technology to improve the physical efficiency of our package movement and also keep our customers informed about their packages. We accomplish this by having more efficient and more accurate means of collecting the information and then allowing customers to more readily access that information.
Q: What are the most visible changes currently taking place in the shipping industry, and how do you see the industry evolving in the future?
A: Things are changing in several ways. Right now there is obviously a great deal of consolidation going on, at least in terms of the providers, what their business plans and goals are. To a large extent, that's being driven by the customer trend for one-stop shopping. Most large accounts won't get down to just one provider, but they also clearly want to reduce the number of providers they use.
So I think that drives consolidation within the shipping industry, along with some typical financial business opportunities. Neither of these things happens instantly; they kind of evolve. I think there is more and more focus on shortening supply chains, and our customers really recognize the need - the opportunity - they have in their own businesses to become far more efficient in terms of how they do product storage and distribution. This is not only in terms of cost efficiency but also in terms of efficiency in providing customers better service.
Q: As you continue to pioneer the international air express market, how do you stay abreast of the latest technological developments that could possibly provide DHL with even greater competitive advantage?
A: I'm not someone who grew up on the technology side of things. Certainly I have an interest, but it's not so much in terms of technical applications itself but rather in terms of the business profits or functionality. We recently created a Chief Technology Officer position, which really is very distinct from our CIO. The CIO tends to have responsibility for our ongoing operational systems, the integrity and reliability of our operations, as well as application development. The CTO will focus on our ability to exploit new technologies that would provide better service to our customers. The CTO position enhances our leading edge status, working with others to find more effective ways of doing the things we're doing.
Q: How will your recent alliance with the U.S. Postal service bring additional value to your customers?
A: We have historically been the provider of choice within the United States to large customers of a high-volume business. We had never really put in place a channel that would allow us to more effectively reach the ad hoc kind of occasional international shipper. We believe that our relationship with USPS allows us to reach that ad hoc occasional shipper more effectively than we could have through any of the other channels available to us.
Q: It is generally agreed that getting a product to a customer quickly, efficiently, and in perfect condition is of prime importance to corporate America. What advice can you give CLOs in search of solutions to meet this goal?
A: That's a tricky question. I'd like to say "call DHL" (laughter), but I think the best answer would probably be to focus on the most important elements of your distribu-tion - supply chain requirements - and then find a company whose core competency matches that. As far as the need for express distribution for high-value items, DHL would certainly be on top of the short list. If it was for heavy freight movements that were not express and not high-value, we probably wouldn't make the short list. I think the best way to answer that question is to appreciate and understand your needs and then find a shipper or provider whose core competency is best aligned with those needs.
