DHL 2014 Annual Report Download - page 101

In the Global Forwarding, Freight division we purchase transport services from
airlines, shipping companies and freight carriers rather than providing them ourselves.
Under favourable circumstances, we succeed in purchasing transport services on a
cost-eective basis. We thus have the opportunity of generating higher margins. When
circumstances are not favourable, we bear the risk of not being able to pass on all price
increases to our customers. e extent of the opportunities and risks essentially depends
on trends in the supply, demand and price of transport services as well as the duration
of our contracts. Comprehensive knowledge in the area of brokering transport services
helps us to capitalise on opportunities and minimise risk.
Our Supply Chain division provides customers in a variety of industries with solu-
tions along the entire logistics chain. Our success is highly dependent on our customers’
business success. Since we oer customers a widely diversied range of products in
dierent sectors all over the world, we can diversify our risk portfolio and thus counter-
act the incumbent risks. Moreover, our future success also depends on our ability to
continuously improve our existing business and to grow in our most important markets
and customer segments. We do not see any signicant strategic opportunities or risks for
the Supply Chain division beyond those reported in the section entitled “Opportunities
and risks arising from macroeconomic and industry-specic conditions”.
Opportunities and risks arising from internal processes
For us to render our services, a number of internal processes need to be integrated. In
addition to fundamental operating processes, these include supporting functions such
as sales and purchasing as well as corresponding management. Should we succeed in
aligning our internal processes to meet customer needs whilst simultaneously lowering
costs, this could lead to positive deviations from current projections. We are steadily
improving internal processes with the help of our First Choice initiatives. is improves
customer satisfaction whilst reducing our costs. Our earnings projection already incor-
porates expected cost savings.
Logistics services are generally provided in bulk and require a complex oper ational
infrastructure with high quality standards. To consistently guarantee reliability and
punctual delivery, processes must be organised so as to proceed smoothly with no
technical or personnel-related glitches. Any weaknesses with regard to posting and
collection, sorting, transport, warehousing or delivery could seriously compromise
our competitive position. We therefore adapt all processes to current circumstances as
needed. We also take preventive measures to guard against disruptions or malfunctions
in our operational processes. Should disruptions nonetheless occur, contingency plans
will come into eect to minimise the consequences. Some risks from business inter-
ruptions are also partly protected by our insurance policies.
Opportunities and risks arising from information technology
e security of our information systems is particularly important to us. e goal is to en-
sure continuous  system operation and prevent unauthorised access to our systems and
databases. To full this responsibility, the Information Security Committee, a sub-com-
mittee of the  Board, has dened guidelines and procedures based on , the
international standard for information security management. In addition, Group Risk
Management,  Audit, Data Protection and Corporate Security monitor and assess 
risk on an on-going basis. For our processes to run smoothly at all times, the essential
 systems must be constantly available. We ensure this by designing our systems to
Deutsche Post  Group —  Annual Report
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Group Management Report — OPPORTUNITIES AND RISKS — Categories of opportunities and risks