Business

DHL, Norbrook form strategic alliance

Wednesday, May 21, 2014    

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DHL Express has entered into a strategic alliance with local-based Norbrook Caribbean Investment Company (NCIC) in a deal tipped to significantly expand the international giant's retail presence and offering in Jamaica.

NCIC is the parent company of logistics firms Mailpac Services and Airpak Express.

According to a joint press release by DHL and NCIC, the alliance will see both companies investing in the enhancement of the local and international logistics offering to Jamaican companies and consumers. In addition, DHL and NCIC will develop and share infrastructure and resources to better meet the growing needs of customers - both corporate and retail.

"We are very excited about the alliance with Norbrook as it will allow us to better serve the increasing needs of our customers, in both local and international services," said Donovan James, the head of DHL Jamaica and commercial director for the Caribbean Region.

More specifically, DHL will initiate its new alliance with Norbrook by offering its services in all 14 newly renovated Mailpac stores. As of June 1, the 80,000 retail customers and over 5,000 corporate customers shared in Jamaica between the two logistics providers will be able to access all DHL products at any Mailpac location, including outbound international shipping, the companies announced.

In addition to offering the DHL services in its stores, Mailpac will gain access to DHL's airlift capabilities to become the only online shopping company with daily shipments to Jamaica. This will not only ensure faster shipments for customers of the country's largest e-commerce fulfillment provider but will allow Mailpac to leverage DHL's logistics network to offer a novel solution for commercial air freight shippers - both for import and export.

"As Jamaica's largest logistics provider, we have always prided ourselves on offering customers the highest quality service. Accordingly, we are excited to have this alliance with DHL, as they have proven themselves to be the region's best international express courier service and we are excited to offer their solutions to our customers. We are even more eager to meet the local logistics needs of their client base with proven solutions," said Khary Robinson, NCIC's managing partner.

One important element of the solution being established through the partnership is a logistics solution to address the unique needs of Jamaican manufacturers, he said, noting that the introduction of export taxes on all shipments has made it difficult for small local manufacturers to compete in the global marketplace. In response, DHL and NCIC will be launching a commercial fulfillment solution so as to allow them a significantly cheaper solution of getting their products to international customers, he said.

"If a customer in the US decides that he wants a Jamaican-made product that cost US$30, he can easily be forced to pay another US$60 to get it in his hand, given

the export taxes levied," Robinson said.

"That makes our small local manufacturers uncompetitive in the market. With the DHL partnership, we aim to offer a unique solution that can see that fulfilment cost reduced by more than 65 per cent," Robinson added.

Meanwhile, NCIC also announced that it will be investing in the development of what the company said will be "Jamaica's first logistics park ", to accommodate the growth of its various business lines, its growing corporate consumer base, and its recently forged partnership with DHL.

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