Tobias M. Schultz, Executive Vice President, deugro group

https://deugro.com/
Author picture

Tobias M. Schultz

The COVID-19 pandemic continues to signify how important health and safety issues are, not only for our employees, but also for our clients and subcontractors. The enormous impact of health and safety on operative working processes along the supply chain became evident in recent months.

At deugro group, we review our quality, health, safety, environment, and security (QHSES) processes constantly, in line with the plan-do-check-act (PDCA) model, to ensure operational excellence for all deugro group companies and enterprises. Our QHSES department enables us to react within the shortest possible time with appropriate measures and resilient emergency planning to ensure the well-being of all parties involved. We will continue to promote, invest in, and expand this approach in the coming years.

The COVID-19 pandemic further highlights the importance of close working relationships and collaboration with clients and partners. Adapting to new technologies, meeting customers virtually, and using tools like Microsoft Teams, Skype, Webex, etc., are paramount to effectively connecting and communicating.

As part of deugro’s global digitalization strategy, we are investing heavily in deugro group’s IT landscape, which also includes interfaces with our clients and partners. This ranges from deugro’s new customized transport management system to OTTO, dteq’s custom-made cloud-based transport engineering software, which creates customized transport engineering solutions including operation, documentation, and technical project management, to the new e---procurement modules of deugro visiotrack, deugro’s own supply chain, transportation, and warehouse management software suite, and to SAI360, a centralized reporting tool on QHSES incidents and observations that provides greater transparency.

Likewise, effective communication internally is equally important to ensure that all deugro group employees globally are kept up to date about relevant business topics, without delays. It enables the organization to act and adapt quickly when needed. Therefore, the deugro group introduced HELIX, a state-of-the-art intranet platform based on SharePoint and Valo, to all deugro group employees back in February 2020. The use of electronic communication will continue to shape the logistics industry for years to come as it drives efficiencies, thus enhancing performance while saving cost. In this regard, the deugro group already offers certified web trainings, such as the “Incoterms 2020 Made Easy — A Comprehensive E-Learning Course” training from 4D Supply Chain Consulting, certified by the Chartered Institute of Logistics & Transport (CILT), and technical training modules from dteq.

All of this is an integral part of our overall digitalization strategy along the supply chain. To meet growing client requirements and provide the best possible tools and skills in an increasingly digital environment, the deugro group continues to invest in a future-oriented digitalization program, with state-of-the-art IT architecture delivering consistent, high-quality data covering all areas of the supply chain.

External data communication with clients, subcontractors, and project stakeholders will continually be digitally optimized, allowing real-time data exchange and operational visibility to all project stakeholders. In this regard, the deugro group has already started to redesign its organizational structure, creating efficiencies and new teams. The benefits range from optimized document and transport management systems to deugro visiotrack, providing clients 24/7 global access to all cargo information and documentation, which is required for smooth work processes and ensuring visibility of real-time logistics data.

The stability and resilience of our logistical processes and our IT network are of utmost importance to deugro, not only to guarantee operational excellence but also to be ready for the future, no matter the challenge.

To achieve decarbonization and to reduce greenhouse gas emission, shipping lines are required to invest to meet future objectives and environmental regulations. That said, most shipping lines continue to endure weak market conditions combining low rates, an overcapacity of aging tonnage, and a highly competitive marketplace. Shipping lines must either invest in new technologies to protect the environment by replacing old propulsion systems or, alternatively, invest in fuel-economy-friendly vessels.

A pivotal part of shipping lines’ preparation for a more -environment-friendly future rests with financial institutions and banks, as ultimately those institutions play a key role relative to providing the required financing. Some banks have burned their fingers in the past. Near-term future will tell how much appetite is left with the banks to provide financing to an ailing shipping industry. Perhaps most important is that both shipping lines and financial institutions need to adapt, align, and collaborate so that finance conditions and expectations on financial returns are realistic.

deugro group’s financial stability has allowed dship Carriers, a deugro group company, to order a total of four F-500 multipurpose/heavy-lift vessels, according to our fleet expansion program, which was initiated back in 2018. The F-500 vessel type belongs to the new generation of economical multi-purpose vessels, specially developed to reduce fuel consumption and to increase stowage flexibility.

However, the responsibility for reducing emissions does not lie solely with the shipping companies. Cargo owners, freight forwarders, and everyone else participating in the supply chain can make an important contribution.