The global logistics industry is increasingly adopting data analytics, artificial intelligence (AI), and blockchain as part of a suite of operational and customer-facing solutions. Since the advent of ChatGPT and generative AI has become mainstream, logistics operators have also started exploring applications of generative AI for their customers and partners. In a conversation with Mint, Dirk Alfuss, Chief Information Officer at DHL Express, a global logistics company headquartered in Germany, explained the company’s technology-driven product development roadmap, DHL’s use of AI in its product stack. , plans to use generative AI, and India’s importance among all global markets. Edited excerpt:
How does DHL handle large-scale operations within India? Are emerging technologies playing a role?
We operate in 230 countries, so this is not just an India challenge. The underlying infrastructure varies widely geographically. If you operate in Europe or the US, you have high-end, high-tech products. Infrastructure is not yet in place in developing markets. Keeping up with these different infrastructure setups is difficult. What we’ve done is set up a protocol called 100% uptime and basically invest in a business continuity plan (BCP) technology solution so that in every country the system runs his 24/7 to ensure that
India is helping us with local planning, how to set up local networks, failover solutions, everything. India is well-equipped with world-class technology on par with global standards.
How is India different from most other countries you do business in? What are your expansion plans here?
India is pretty unique. Yes, we do DHL Express business and other business here. But we use India as one of our three main hubs to create solutions for the world. This is done at our shared IT service center in Chennai. Demand is so great that we have great plans to work with local universities to secure the best talent. In that sense, India has contributed significantly not only to the success of DHL Express, but also to our global application environment.
Demand from Indian customers is no different than anywhere else in the world. Interestingly, the demand from authorities to provide data for customs clearance has increased significantly over the last few years.
When it comes to jobs, our data and sharing services have seen double-digit growth and will continue to do so.
How do you use AI? Any immediate plans to introduce a generative AI solution?
ML/AI is not a new topic for us. Optimizing processes, optimizing cut-off times, optimizing solutions for customers is not possible without ML, big data and analytics. We have multiple solutions in place that actually help us track and safely deliver packages all over the world.
Generative AI has been all the hype since November, and everyone is eyeing its transformative and transformative potential. Yes, we are considering customer communication and chatbots. We are looking at other tools as well as OpenAI and creating use cases.
There are many possible solutions. But on the other hand, we are a little cautious because new content will be created. We need to understand the risks. While we take a cautious view of generative AI, we are excited about its innovation potential.
DHL was implementing blockchain in its operations. Do you have plans to expand blockchain adoption?
We have created our own one blockchain not only for DHL Express, but also for our suppliers, customers and customs. The results are mixed. It’s more of a niche than the rest and we’re still exploring it. Over the past 3-4 years, we have mastered many technologies and networks of suppliers and customers who have joined us on this journey. We can now speak with confidence about the value and limitations of blockchain in the industry.
How are you dealing with growing cyber threats and data breaches?
Every CIO on the planet has the same nightmare. We are under attack, if not on a larger scale. All AI and ML we talked about can be sued against us. So what we do is a lasting investment in the latest technology. We get a lot of information from frequent scans. This is part of our development learning, so we are developing our applications safely and reliably. We are also educating our users not to click on any links. Every day, people receive phishing messages.
DHL is reportedly one of the most imitated brands in phishing campaigns. How are you dealing with this issue?
It was a surprise for us. This is not an attack on us, it is an attack on our customers, but it is certainly a concern. We are working with authorities and law enforcement at all levels to identify and shut down such sites. We have a very good cybersecurity and response team that we are working on. We offer bounty programs to our customers and people who provide insight and help prevent such malicious activity.
