Subcontractor managementEN 32
For the most part, transport services are procured decentrally by our divisions. The Supplier Code of Conduct is also used as a binding component of contracts awarded in decentralized procurement.
We include our subcontractors in our decisions and activities right from the outset, such as when calculating carbon emissions. Harmonizing emissions calculation methodologies worldwide is a key component of our environmental program GoGreen. We thus participate in a number of related global initiatives, among them Green Freight Asia, Green Freight Europe and the Global Logistics Emissions Council.
Air and ocean freight
Unlike our express business, in our air freight operations we have no Group-owned aircraft. We operate solely as an agent between customer and freight forwarder. When selecting subcontractors, we consider environmental criteria and take three key factors into account:
- The company’s efficiency, which we monitor on a monthly basis
- Transparency in fleet composition
- The company’s participation in industry-led initiatives such as the Airfreight Carbon Initiative and projects to reduce fuel consumption and noise pollution when approaching Leipzig/Halle airport, with which we are pushing the topic of sustainable aviation
To ensure that we can track and verify a subcontractor’s environmental performance, the outcomes of the above checks are entered into the Carrier Scorecard, which is then used in the overall evaluation.
Our entire ocean freight operations are also carried out by transportation subcontractors. We have no Group-owned container ships. One of our most important tools in selecting a shipping company is the Green Carrier Scorecard.
Companies are evaluated based on the following criteria:
- Cooperation: The provision of carbon efficiency and environmental performance data via the Clean Cargo Working Group (CCWG)
- Carbon efficiencyA ratio index used by Deutsche Post DHL Group to manage the greenhouse gas emissions of its business operations, whereby emissions resulting from fuel and energy consumption are assessed in relation to services rendered (e.g. quantities/volumes of letters, parcels, pallets or containers).: The company’s efficiency by trade lane against the industry average
- Transparency: Verification of data by an independent third-party
- Engagement: The company’s participation in industry-led initiatives and notable involvement in environmental projects and initiatives
Each year shipping companies are issued a GoGreen Carrier Certificate that summarizes the results of the evaluation.
In our road freight operations, subcontractor management poses a far greater challenge than with air and ocean freight. This is largely due to the fact that the supplier market is much more fragmented. In the reporting year, the road freight market in Europe amassed sales of some €193 billion. With a market share of 2.2%, Deutsche Post DHL Group is the second largest provider in the road freight sector.
To improve subcontractors’ greenhouse gas emission efficiency, we have joined a number of industry-led initiatives whose work focuses on determining the environmental performance of road freight companies and developing a standardized method for calculating the emissions of road freight operations. We are also able to influence the efficiency of our road transport subcontractors by supporting them in their efforts to improve their efficiency and, among other things, by giving them access to our procurement contacts to assist them in the purchase of new, more efficient vehicles.