Tag: DHL

Deutsche Post sees DHL breaking even in U.S. in 2-3 years

Posted by | Dec 5, 2006 | |

Deutsche Post expects its DHL Express business in the United States to break even in two to three years as it takes on larger U.S. rivals UPS and FedEx.

The company wants to achieve a return on sales of 3 to 5 percent at the U.S. business in the mid to long term, DHL Express head John Mullen said at a capital markets day in New York on Tuesday.

“The United States is a long, hard road,” Mullen said. “I think we are making good progress. At the moment, our focus is clearly to break even.”

The company had previously said it did not expect DHL Express to break even in the U.S. before 2009.

Shares in Deutsche Post rose 3.6 percent to 23.35 euros following Mullen’s comments, making them the second-best performers on the German DAX index.

Deutsche Post is struggling with losses at DHL Express in the United States as it tries to boost its presence in a market dominated by FedEx and UPS. Deutsche Post has expanded into new markets, in particular through its DHL logistics and express delivery divisions, as it prepares to lose its domestic mail monopoly.

Mullen said the 3 to 5 percent return-on-sales target for DHL Express in the United States was “hardly on the radar screen,” but added: “It’s there as an aspirational goal.”

The company is aiming to achieve an eventual return on sales of 10 percent across DHL Express worldwide.

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DHL among the best regional contact centres

Posted by | Dec 5, 2006 | |

DHL won the Bronze Award for “Best Contact Centre of the Year (Under 50 Seats)” at the Regional Contact Centre Awards 2006 held in Singapore recently. The annual awards ceremony was organised by the Contact Centre Association of Singapore (CCAS) and represented joint associations of contact centres in China, Hong Kong, Malaysia and Singapore. DHL was also presented the “Best Contact Centre Below 50 Seats” award in 2006 and in 2004 by the Contact Centre Association of Malaysia (CCAM) as well as the Asia Pacific Merit Achievement and CS Excellent Award, the company said in a statement here today. Country manager, DHL Express Malaysia, Sam Leong said DHL was very delighted that the company had once again been acknowledged as one of the most outstanding contact centres in the region. “This accolade reaffirms our commitment to provide excellent customer service and underlining DHL Malaysia’s contribution to its overall operations in Asia Pacific,” he added. The DHL Contact Centre is part of the DHL Express Customer Service team that operates 24 hours a day to support DHL Express Malaysia customers.

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DHL and IBM develop IT logistics platform for Karstadt

Posted by | Dec 5, 2006 | |

DHL Exel Supply Chain, the logistics specialist at Deutsche Post World Net, and the IBM business consulting firm Global Business Services have jointly developed a new IT-based warehouse-management solution for Karstadt Warenhaus GmbH. The value of the euro-denominated contract is in the double-digit range. Starting in mid-2008, 11 DHL locations will be equipped with the new solution, known as system platform logistics. Once the system goes into operation, Karstadt will profit from significantly improved logistics processes and falling costs.

In 2005, DHL took over responsibility for major portions of KarstadtQuelle’s logistics, including the distribution logistics for Karstadt Warenhaus GmbH. With the introduction of the new system platform Logistics, such core logistics processes as receiving goods, warehousing, picking, distributing and shipping goods will be modernized from the ground up. One single platform will administer and manage these processes. It will replace around 20 outdated systems, and provide enormous flexibility thanks to its modular design and guaranteed future. It will be initially used in all DHL locations where logistics services for Karstadt Warenhaus GmbH are provided.

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Deutsche Post plans changes in parcel delivery

Posted by | Dec 4, 2006 | |

It is reported that Deutsche Post, the German national postal services provider, is planning to merge the parcel and mail shipment divisions and outsource other divisions of the parcel delivery division to external companies. It is feared that these drastic changes will entail further job cuts at Deutsche Post. From early 2007, the company does not intend to employ its own staff at 280 areas in parcel delivery. It is said that the operating division will be most affected, as so-called joint delivery, that is the combined delivery of mail and parcels by mail deliverers, is to be extended. Redundancies are ruled out until the start of 2008, however, owing to the employment pact agreed with German trade union Ver.di.

The parcel sector has come under great pressure from competition, whereas the mail sector accounts for the majority of the company’s profit. Last year, the company had turnover of 44.6bn euros, of which 12.9bn euros came from the mail division, and 18.3bn euros from the express division, which deals with parcel delivery.

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Deutsche Post plans major parcel restructuring in Germany

Posted by | Dec 4, 2006 | |

Deutsche Post is reportedly planning to merge its parcel delivery operations in Germany into the mail business in one of its largest restructuring moves for a decade. At the same time, unions are threatening strike action over plans to lengthen working times next year.

According to a report in German newspaper Die Welt, there would be only one delivery organization and one administration for both the mail and parcel businesses. At present, there are separate delivery organizations for parcels and mail in urban areas, while rural deliveries are bundled into one service. The 83 mail sorting centres and 33 parcel sorting centres that are no longer fully utilised could also be combined into one structure.

Unions Verdi and DPV said they feared a new round of job cuts among tens of thousands of staff affected by the move. Deutsche Post’s domestic parcel business is reportedly loss-making due to high operational costs of the parcel sorting centres and pay levels above those of competitors.

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