DHL to consolidate back-end operations in China

HONG KONG - DHL Express Worldwide could soon be centralising some of its operation in China, reported the South China Morning Post.

According to the daily, DHL Express Worldwide would be centralising some of its Chinese operations in an effort to improve efficiency.

DHL has since denied it would move its operations from first-tier cities to Chengdu in a bid to reduce labour costs.
 
"DHL is not moving offices to Chengdu. We are exploring the possibility of centralising back-end Finance activities for greater efficiency and standardisation. These services are currently undertaken in a number of locations throughout China," Anita Gupta, head of corporate communications & Sustainability told ProcurementAsia.

The deepening woes of the financial crisis may be forcing multinational firms to re-strategise their operations on the Chinese mainland.

The Securities Times reported some DHL support services, such as credit control and late payment collection would be consolidated, and that DHL might axe around 800 staff in China.

DHL has declined comment on this, but is expected to provide details of its restructuring operations in China shortly.