Tag: DHL

Parcel shipping: Domestic problems persist for DHL Express USA

Posted by | Oct 3, 2008 | |

DHL Express USA has terminated roughly 80-to-90 percent—or hundreds—of its domestic sales force staffers, LM has learned.

According to an industry source, DHL Express USA will retain somewhere between 80-to-150 U.S.-based sales staff that will now be referred to as “international” sales representatives.

The UPS-DHL contract was originally expected to be finalized by August; industry analysts are suggesting it may take at least another two months.

While market conditions remain challenging for DHL Express USA, the industry source said it is by no means certain that it will exit domestic ground operations.

But a research report by Robert W. Baird transportation analyst Jon A. Langenfeld said that, according to industry contacts, deteriorating conditions could force DHL to more drastically eliminate its U.S. domestic parcel operations.

And Morgan Stanley analyst William Greene wrote in a research note that due to anecdotal reports of extremely large volume declines at DHL it is becoming more difficult to see how DHL can deliver USD 1 billion in annual air revenue to UPS should the deal go through.

Greene wrote that prospects of this deal being consummated are becoming doubtful, adding that DHL’s customers appear to be leaving at a rapid pace, coupled with the fact that the House anti-trust and competitive issue-related hearings could also spike the deal.

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DHL reviews Same Day operations (UK)

Posted by | Oct 2, 2008 | |

DHL is “reviewing its Same Day operations with a view to repositioning the business in accordance with market requirements”.

A DHL spokeswoman says: “Changes pertain to the strategic direction and deployment of the Same Day sales force, in an effort to establish closer links with customers.”

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CPL – Daimler switches from international express to deferred deliveries

Posted by | Oct 2, 2008 | |

Daimler aims to switch more of its international express shipments to deferred products to save on cost while ensuring reliable transit times.

Over the last two years, Daimler has centralised its CEP planning and procurement in the Stuttgart head office. Previously this was handled at local level, resulting in deviance from global standards and agreements, and a lack of transparency, Pomberger explained.

In order to offer CEP shipping across the entire group of brands and subsidiaries, Daimler has created its own intranet tool under the name of “CEPRIS”, integrating all agreements and negotiated rates with the four integrators for delivery of documents and parcels up to 70kg. This also provides one single database for reporting purposes. “CEPRIS is a key success factor,” Pomberger emphasised.

At the same time, the automotive group has defined its international CEP requirements into four service levels: economy, offering reliable transportation; next-day express by 09:00 and 12:00; and special services/urgent deliveries, he said.

For the first three service levels, Daimler works with all four integrators, “trying to use their regional strengths around the world”, Pomberger said. The company is looking into adding another service provider, he added. “I’m sure we will add one or more company to our portfolio in future,” he said. For urgent shipments, Daimler uses DHL, time:matters, TNT and World Courier.

Daimler is now actively trying to steer more of its CEP traffic flows from express to economy delivery, Pomberger said. “We need greater flexibility and economical alternatives for less urgent shipments,” he declared. “(Our) demand for economy services is growing.” The company was under “ enormous cost pressure” and needed “competitive” rate levels, he noted.

In addition, the automotive group needed its CEP providers to ensure reliable transit times, high quality reports and service offers focused on Daimler’s needs. “CEP firms often offer products and services that do not fit our needs,” he criticised. “I do not always have the feeling that the integrators listen to our needs.” But he stressed that overall Daimler had “good service levels” around the world from its providers.

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DHL announces new Commercial Executive Vice President

Posted by | Oct 2, 2008 | |

DHL Express today announced that George Kerschbaumer has been appointed Executive Vice President (EVP) of the Commercial division at DHL Express and will also assume a position on the DHL Express Global Management Board with immediate effect.
Kerschbaumer, who previously fulfilled the role as EVP of Corporate Development at DPWN, will report directly to DHL Express CEO, John Mullen and will be responsible for directing the global commercial function for the Express division.
He succeeds John Pearson who has recently taken up the Express EEMEA CEO role.

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DHL Express Europe announces general rate increase

Posted by | Oct 1, 2008 | |

DHL Express Europe announced a general rate increase of 4-5 pct, due to take effect on December 1, 2008. The increase is in line with overall European inflation figures and has become necessary amid rising operating costs.

Scott Price, CEO DHL Express Europe said:” Inflation across Europe has been growing significantly since mid-May 2008. After having absorbed the higher cost base so far this year, the rate increase is a necessary measure to adjust to the current economic situation.

We are announcing our intention to increase prices early, in an effort to give our customers and partners the opportunity to adapt their own business planning for the year to come.”

All countries belonging to the Express Europe network will announce the price increase in line with their respective local inflation rates. DHL Express Europe evaluates the individual inflation rates in all countries on the basis of official sources at country levels, such as leading banks and central bureaus of statistics.

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