DHL 1999 Annual Report Download - page 65

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The logistics sector faces new challenges
The logistics sector currently finds itself in the midst
of rapid change. Developments in the global economy
have been a major force behind this change. The pres-
ent scenario is also driven by the industry’s growing
tendency to outsource logistics activities in order to
focus more completely on its core business,and by the
breakneck speed at which information technology is
developing.E-Commerce also has a positive impact on
the logistics sector by markedly increasing demand for
such services. The market for contract logistics is
growing at a correspondingly fast pace. Third-party
logistics encompasses services which a logistics pro-
vider renders for a company on the basis of an indi-
vidual contract or within the framework of a long-
term business relationship. Services can range from a
few specific services to complete coverage of the entire
supply chain. The logistics industry itself is under-
going a concentration and consolidation process. A
broad range of products and services plus a global
presence will be crucial factors for successfully com-
peting in this market.
Our strategy – Offer international logistics
services from a single source
Back in 1998, Danzas made public a strategy which is
now being implemented under the Deutsche Post World
Net banner.This strategy has four main thrusts:
The first thrust targets the expansion of Danzas’s busi-
ness in the area of customer-oriented, integrated logis-
tics solutions. Danzas is continually working to opti-
mize the customized solutions for every step in the
supply chain, which it develops with manufacturers
and traders of consumer and industrial goods in mind.
The key activities involved in this area are warehousing
and distribution. They are rounded out by a broad
range of value-added services (commissioning,
co-packing, price labeling, invoicing, order processing,
sales promotion measures, financial services, returns
management and the like) which is being expanded on
an ongoing basis so that we can offer customers true
one-stop-shopping,enabling them to concentrate com-
pletely on their core business. Notably, complex IT
solutions are emerging as an increasingly decisive fac-
tor for success.
The second thrust of the Danzas strategy is the expan-
sion of its intercontinental operations,which encom-
pass worldwide air and sea freight activities as well as its
project business (which entails the coordination and
execution of logistics services for large-scale infrastruc-
tural and industrial projects). It is our declared objective
to improve the service we offer customers beyond its
present high level by developing various regions even
further – in other words, by offering additional air and
sea routes.In working toward this goal,we attach partic-
ular value to keeping our capital intensity down. This
means that rather than maintain fleets of ships and
planes, we will purchase freight capacity on the market
as needed.
Optimization of our European ground transportation
constitutes the third thrust of this strategy. Freight will
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