Deutsche Post DHL Group and SF Holding conclude landmark supply chain deal

Feb 19, 2019: Deutsche Post DHL Group (DPDHL Group) has concluded a ten-year partnership deal to transfer its supply chain operations in China to SF Holding (SF), a leading premium logistics service provider in the country.

The transaction involves the supply chain business, and has no bearing on DPDHL Group's business activities in international express, freight transport and e-commerce logistics solutions in China.

The transaction involves DPDHL Group receiving RMB 5.5 billion (EUR 700 million), and will continue to receive revenue-based partnership fees for 10 years.

Named as SF DHL Supply Chain China, this co-branded business will be provided with trademark license, customer referral, employee training, best practice sharing and other areas of support from DPDHL Group.

The business will be headquartered in Shanghai and harness DPDHL Group's best-in-class supply chain services, management expertise, transportation and warehousing technology, combined with SF's extensive domestic infrastructure, distribution network and broad base of local customers, to drive its growth trajectory.

Yin Zou (former CEO, Greater China of DHL Supply Chain) was appointed CEO of the organisation, and along with his existing management team, will continue leading the business.

“The agreement, therefore, is the cornerstone for DPDHL Group to gain unprecedented access to China's immense domestic market,” said Frank Appel, CEO Deutsche Post DHL Group.

“SF's vision is to become a trustworthy logistics-based business partner with comprehensive solutions for our customers, and our partnership with DPDHL, the leading logistics company in the world, helps us move solidly ahead with this vision. We are expanding our domestic footprint through SF DHL Supply Chain China to cater to our customers across a multitude of industries. This deal with DPDHL Group, a world-class organization, also helps us to better serve multi-national clients,” said Dick Wong, Chairman, SF Holding.

SF DHL Supply Chain China will have access to DPDHL Group's global expertise, network, operations standards and innovations, across industries from technology, healthcare, retail and automotive to e-commerce.