Deutsche Post DHL (DPDHL) has concluded a deal to transfer its supply chain operations in China to SF Holding in a ten-year strategic partnership to grow the business in China. As part of this deal, which was first announced at the end of October last year, DP DHL will receive an upfront payment of RMB5.5bn (approximately €700m) and a revenue-based partnership fee over the next decade.
DPDHL Group provides the co-branded business with trademark license, customer referral, employee training, best practice sharing and other areas of support. The co-branded business will be named SF DHL Supply Chain China and Yin Zou, former chief executive, Greater China of DHL Supply Chain, was appointed chief executive of the organisation, and along with his existing management team, will continue leading the business.
The business will be headquartered in Shanghai and will offer DPDHL’s supply chain services, management expertise, transportation and warehousing technology, combined with SF’s extensive domestic infrastructure, distribution network and broad base of local customers.
Frank Appel, chief executive, DPDHL said: “This supply chain alliance with SF is a strategic milestone for DPDHL Group.