DHL 1999 Annual Report Download - page 38

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During the past two years we have pursued an expansionary acquisition policy. Driven by our strategy’s
three fundamental thrusts – internationalization,broadening of our product base and expansion of our
value-added logistics services – we acquired more than 20 firms.
Creating value through rapid, systematic integration
Major steps on our way to becoming a modern interna-
tional logistics corporation were the acquisition of ten
parcel distribution companies in Europe and our stake
in DHL for the EXPRESS corporate division, the
purchase of Danzas, the European Transport Division
of Nedlloyd, ASG and AEI for our LOGISTICS cor-
porate division, and Postbank and DSL Bank for our
FINANCIAL SERVICES corporate division.
To ensure the success of these acquisitions, we have
assigned top priority to integrating them smoothly and
efficiently into our Group.As a first step, we integrate
newly acquired firms into the respective corporate divi-
sion following a structured process.
• Phase1: Immediately establish the basic conditions
necessary for success. In our opinion, the only way to
ensure sufficient stability for integrating a company is
to make crucial decisions without delay shortly after
the acquisition is made public. For this reason, for
each and every new acquisition, we set up a new or-
ganizational structure, adopt a corporate vision and
objectives for the new entity, fill key positions in the
new organization and set up a project team for inte-
grating the new acquisition during the first six weeks
of the integration process.
• Phase 2:Develop a master plan for integration.During
this phase,the tasks and issues involved in integration
are prioritized on the basis of their urgency and the
scope of the changes they entail. Corresponding plans
are developed. The tasks involved in integrating a new
acquisition can be broken down into the following
general categories:
-Detailed layout of the regional and functional organ-
ization;
-Systematic stipulation of individual measures to sup-
port targeted synergies;
-Product standardization to enable us to offer uniform
products,prices and services at international level;
-Network integration which entails linking the indivi-
dual companies’transport and logistics networks with
one another, coordinating routes, merging terminals
and hubs;
-Standardization and interlinking of IT infrastructures
– the backbone of today’s modern logistics service
provider;
-Harmonization of reporting systems.We have adopted
the International Accounting Standards for our
Group;
-Establishment of a uniform brand architecture. Brand
awareness is very important in our business. In Ger-
many, we stand for reliability and quality. Looking at
Europe, we plan to build up a uniform brand in the
express delivery field and gradually retire our new
acquisitions’local company names.We will market our
logistics services worldwide under the Danzas name;
-Delineation of clearly defined responsibilities with the
incorporation of the acquired company’s management
and culture,a move which will allow us to benefit from
their experience.