DPD fulfils its promise

"We are entering a new dimension with this product.>> Claude Béglé chairman of DPD's supervisory board, told journalists in Hamburg when describing the process that has now reached a climax after months of detailed preparations. In the course of developing the new product, DPD gained a great deal of valuable experience with its Garan tiepaket 24. a next-day delivery service that it launched in its home market of Germany in the middle of 2000 as a high quality product with a high level of security.
DPD's French parent group, La Poste. and the U.S-based integrator FedEx signed a cooperation agreement in summer 2001. As a result, DPD now has access to the international network (including air services) operated by Federal Express (FedEx).

DPD plans to proceed step by step

DPD intends to introduce its new express product in carefully considered stages. The first phase will provide full coverage of the German market with two grades of service, the .~Express 10>> and the ~Express 12>>.
The figures represent binding delivery times. If the promised delivery time cannot be complied with, the customer is informed at an early stage, and his charges are also reimbursed under a < antee>>. However, on the basis of the positive experience already gained by DPD with its <> Schroven reported. In other words, the DPD network has already reached an extremely high standard of performance.

No big publicity campaign

To complete the range of express products. there will also be an international service. Consignments dispatched in this sector will be handled by the FedEx network. In this case, the crucial hubs will he at the airports of Frankfurt/Main and Paris. In the French capital. for example. FedEx operates its European hub. which functions as the huh for its intercontinental services. Its product range includes a wide variety of services, for instance online information on the status of the dispatch or various insurance options.
Before the new product is made available in other countries served by DPD. it intends to gain practical
experience and increase the product ' recognition. Béglé dismissed the idea of launching a publicity campaign on a grand scale, however. ~> As far as prices are concerned. DPD uses the two major providers UPS or Deutsche Post World Net, (i.e. Euro Express) as benchmarks. However Béglé emphasised this point: < Béglé‚ revealed.
<> However, the chief of DPD's supervisory hoard conceded that he anticipated losses <> But he considers
that this is justified in view of the prospects for high returns from the international express parcel business.

Tough negotiations on price

The new product is not the only innovation at DPD. The Europeanisation of the network is proceeding smoothly, with the addition of Poland and the Baltic states within a few weeks. The coverage was extended to the Baltic states through a partnership with the Swedish Post. Béglé was full of praise for this company:
<>
Schroven admitted, however, that there have also been deviations from the plan. This was illustrated by two examples. First, there are the price increases of an average of 5% imposed from April 1 , 2002. This move, which Béglé described as < Secondly. volumes are below budgeted levels, chiefly in Germany. hut also. as Schroven conceded with some concern, in many other European countries. His conclusion: <>