Interview with Arnold Schroven CEO, DPD Deutscher Paket Dienst GmbH & Co. KG
DPD CEO discusses the company’s strategic plans to enhance its position for long-term sustainable and profitable growth in a thorny business setting. (2/10/2003)
Q: What strategic direction are you gearing toward in order to better your position for long-term sustainable and profitable growth in a difficult business environment? Which infrastructures are you targeting for increased performance?
A: The DPD is the Number 2 in Germany and in Europe as a whole it is in third place. We intend to reinforce our position as a value-added service provider above all by the continuous extension of our product portfolio. The focus here will be on the enlargement of our market share in the express sector with our new products EXPRESS10 and EXPRESS12 in Germany, together with EXPRESSInternational for worldwide international shipments. At the same time we are steadily building and extending our international network. In addition we will be aiming at an average price increase of 4%-5% in 2003.
In the infrastructure field we are continuously improving our IT services and our operational network. This is being done with a view both to customer requirements and to optimising processes and costs.
It must be pointed out that in spite of the difficult business environment we are recording growth in turnover and parcel volumes.
Q: Will DPD be making more aggressive cost-cutting and strategic initiatives to combat the poor economic climate? How are you going to proactively align the Company with the marketplace?
A: The scope for reducing costs has already been exhausted, because falling prices made this an urgent necessity in recent years. We can only react on the market by offering good quality, a large product portfolio and a Europe-wide presence. This represents both the unambiguous strategy of our company and the wishes of our customers.
Q: What has been the best technological investment in terms of ROI for our company thus far and why?
A: This is without a doubt the introduction and continuous extension of our IT network.
Q: What factors do you believe will differentiate the winners from the losers in the express post industry over the next 3 years?
A: The winners will be those companies, which are oriented towards the market and the customer, and have the ability to react quickly and flexibly to the requirements of this market. And of course this also means uncompromising quality and competitive prices.
Q: Has DPD had to restructure your vision due to the poor economic situation? What do you see ahead? When do you see the upturn taking place and why? How are you going to position yourself to reap the benefits?
A: On the contrary, we are confident that we will be able to continue improving our earnings situation in future, and the DPD is in an excellent position to do so.
According to the economic institutes the negative trend will continue through 2003 and the recovery will begin in 2004.
The DPD’s point of view is that corporate visions and the corresponding positioning of the company must always be regarded as a long-term matter. And as a result we are continuing on our course as planned. The current business situation does not necessitate any change in our strategy.
Q: Which postal markets do DPD see the best growth prospects in the coming 12 months, in regards to industry verticals, business types (express, logistics, airfreight etc.) & geographic regions?
A: For us the real growth prospects lie above all in those industries which already have large parcel shipment volumes. The future lies with value-added services like express and international shipments. Geographically, Eastern Europe has good growth potential, in particular the E.U. candidate countries.
Q: What internal re-structuring/re-organising is DPD planning over the next 12 months? Where are you focusing your resources internally?
A: Your question refers to internal restructuring and re-orientation. We hope y
