Tag: Germany

DPD plans more parcel shops in Germany

DPD plans to build up a network of parcel shops across Germany to develop its currently small B2C business and take on DHL and Hermes. The move is part of a new strategy to broaden its product portfolio both in Germany and internationally.

“We have adopted a clear growth strategy,” DPD joint CEO Hans Fluri told German newspaper Die Welt in an interview. The German B2B market leader, with annual revenues of about EUR 1 billion, increased parcel volumes about 5.5% and turnover by 7% last year, the newspaper said. In the B2C market, however, DPD with 35 million shipments lags well behind DHL and Hermes (200 million parcels).

To expand its consumer parcels business, the La Poste subsidiary aims to build up its small network of DPD Shops. “Today we have about 500 DPD Shops. By the end of 2007 we want 2,500 outlets. By 2010 we are aiming for 5,000 shops,” Fluri said.

Although Hermes, with 13,000 outlets, and GLS (4,000) are much larger, DPD sees potential for a third network, he added. “Customer behaviour in terms of parcel shops is not yet fixed and will change. We are convinced that as a well-known firm we have a good chance,” Fluri stated.

Meanwhile, DPD now offers its international parcel distribution by air express to more than 220 countries through a network of cooperation partners, Die Welt reported. Prices are about 40% lower than normal air express rates, and transit times are 1-2 days longer. DPD recently enhanced its express service within Germany with new service options.

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Kuehne + Nagel growth-oriented logistics development in the Asia Pacific region

Kuehne + Nagel is rapidly developing its contract logistics business in the Asia Pacific region. Accelerated expansion in regional warehousing, distribution and lead logistics capacities, particularly in China and India, together with a strategic focus on innovative product development and process optimization, represent the cornerstones of the company’s plan to enhance its market position in the Asia Pacific region, as well as globally.

Kuehne + Nagel rolled out its expansion plan for contract logistics in the Asia Pacific region in 2005. Since then, the business unit’s activities have considerably strengthened, with a series of significant business wins and the opening of new facilities. At present, the company’s contract logistics network in Asia Pacific comprises 43 locations in 13 countries, with a managed warehouse space of 200,000 sqm.

Dirk Reich, EVP Contract Logistics and member of the Management Board of Kuehne + Nagel International AG, said at a press conference in Hong Kong today, “To achieve our objective of offering customers in Asia Pacific high-value logistics services, we plan to significantly expand our infrastructure facilities across the entire region. By the end of 2007, our total warehouse space will rise to 300,000 sqm at more than 60 locations. We envisage organic growth well above the market average and selected local acquisitions, and thereby to achieve a leading market position in this dynamic region.”

Key to the development plan is an enhanced service portfolio to cover a wide spectrum of needs and applications along the global supply chain. This extends from the implementation of Kuehne + Nagel’s globally standardized warehouse management systems across the region, and the implementation of ever more sophisticated industry-specific supply chain management solutions, for example for the automotive, high-tech, industrial goods, pharmaceutical and healthcare, as well as retail and Fast Moving Consumer Goods (FMCG) sectors, through to specific services for selected niche markets, such as aviation and hotel logistics. This enhanced portfolio will allow Kuehne + Nagel to optimally support customers in meeting their individual supply chain requirements.

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DPD aiming to expand in Germany

German parcel delivery specialist DPD, a subsidiary of French postal service operator La Poste, is hoping to increase its share of the German market thanks to a new strategy. The company’s core business will in future include deliveries to private addresses, express deliveries within a guaranteed time and worldwide deliveries. Until now, the company has focused on national and European parcel deliveries.

Experts estimate that the overall market grew by an average of 4.4 per cent last year, while the market for deliveries to private customers grew by over 10 per cent. This trend is expected to continue over the next few years. DPD currently delivers around 35 million parcels to private customers each year and is thus well behind DHL, the express subsidiary of German postal service operator Deutsche Post, and Hermes, a subsidiary of German mail-order group Otto. Among other measures, DPD plans to expand its network of shops; the company intends to have 2,500 shops by the end of the year and 5,000 by 2010, compared with only around 500 at present. Last year, DPD increased its turnover by 7 per cent to around 1bn euros.

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Deutsche Post 2007 Annual General Meeting

The Board of Management and Supervisory Board of DPWN are proposing a dividend of 75 cents for 2006, 7.1 percent more than a year earlier. That corresponds to a payout ratio of 47.1 percent. On average, the dividend has increased 19 percent annually since the Deutsche Post IPO. The company plans to further increase its payout ratio and continue its current dividend policy of sharing its excellent business performance with shareholders. The dividend is tax free for domestic shareholders.

For 2007, the Group reiterated its target to reach an EBIT of at least 3.6 billion euros. That means an increase of at least 3 percent based on the comparable year-ago figure, which included special items such as the exercise of the exchangeable bonds on Postbank shares as well as the related sale of Deutsche Postbank shares.

For its business division MAIL, the Group forecast stable to slightly higher revenue. The division expects that losses in its domestic mail business will be more than offset by the other business units. On an earnings level, the MAIL division expects a stable EBIT of about 2 billion euros. For the EXPRESS division, the Group expects an operating profit of at least 400 million euros for 2007. That includes one-time costs of 100 million euros tied to the new hub in Leipzig, Germany. Excluding these one-time costs, operating profit will amount to over 500 million euros, a more than 50 percent increase compared with the previous year. The LOGISTICS division is expected to raise EBIT by about 15 percent. For the FINANCIAL SERVICES division, the Group forecast an increase of at least 5 percent in EBIT, including one-time expenses of about 100 million euros.

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Changes in management at Deutsche Post World Net

Dr. Hans-Dieter Petram (64), the member of the Board of Management at Deutsche Post World Net responsible for the Mail division, will resign from his position as intended on June 30, 2007, and enter retirement. Jürgen Gerdes (42), the chairman of Mail Germany Divisional Board, has been appointed a new member of the Board of Management by the Supervisory Board. Beginning on July 1, 2007, he will assume responsibility for the Mail and parcel business in Germany. In the newly structured area of responsibility, Gerdes will focus solely on the challenges of Deutsche Post’s home market, concentrating in particular on liberalization of the Mail market and the increasing substitution of letters with electronic communications. As part of this new structure, Dr. Frank Appel (45), the Board of Management member for Global Business Services with extensive cross-departmental functions, will also assume responsibilities for the areas of Mail International and Mail value-added services. In addition, he will oversee the corporate department regulation management (director: Walter Maschke) that had been part of the responsibilities assigned to the Board of Management chairman.

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