DHL 1997 Annual Report Download - page 38

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FREIGHT MAIL
On the right track
By implementing stringent economy measures and taking
rigorous rationalization measures we reduced the negative performance
from a loss of DM 1.4 billion in 1996 to a loss of less than DM 900
million in 1997.
Sales turnaround
Stepped-up marketing and sales activities in 1997 stopped sales
decline for the first time in years. And even though the mail-order busi-
ness, the most important freight mail market segment, was flat at best
due to unfavorable economic circumstances, sales volume of the division
nevertheless rose slightly to 544 million items, a 0.7 percent increase
over 1996. This increase was generated primarily by such value-added
services as COD and registered parcels, as well as by permit-mailer
parcels. By contrast, the number of standard parcels mailed at postal
counters declined. At DM 3,065 million, Freight Mail revenue remained
largely stable compared to the 1996 revenue of DM 3,088 million. The
decline in revenue for standard parcel service was compensated by
increased revenues generated by the permit-mailer parcels.
With the introduction of a
number of product innovations
we have further improved our
service quality. The employment
of sophisticated logistics systems
in our 33 freight processing
centers has cut down delivery
time within Germany to just
1.2 days on average in 1997.
The largest service
provider in the German small-
goods-logistics market today is
Deutsche Post with a 25 percent
market share.
35
Share of total revenue generated by
Freight Mail