DHL 1997 Annual Report Download - page 51

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International Post
48
Divisions
sector. Thanks in particular to a repositioning of the “Premium-Paket”
(premium parcel) product, however, revenue generated by business
customers in the area of outgoing international freight mail increased by
19 percent over the previous year. The result of increased remailing
activities, incoming international letter mail yielded a 2.5 percent
growth in volume and an 8.5 percent increase in revenue for the year. A
slight decline of 1.6 percent in volume was reported for incoming inter-
national freight mail; revenue, however, increased by 3.2 percent over
the previous year.
New organizational structure, enhanced flexibility
International Post is already a player in the global arena. In order
to strengthen that global reach and competitiveness, we have reorgan-
ized our logistics structures, processing centers, channels of distribution
and products. In the past, the division focused on the production side, in
particular on processing facilities. Today, the focus has shifted toward
customers and products: letter mail, freight mail and value-added
services for business customers. The reorganization of the international
business led to the establishment of three international subsidiaries in
mid-1997: International Parcel Post GmbH (IPP), International Mail
Service GmbH (IMS) and International Postal Service GmbH (IPS).
IMS is responsible for product management of Letter Mail for business
customers and for sales management of International Letter Mail. Its
services target business customers both in Germany and abroad who
need tailor-made solutions for their cross-border letter mail. Besides
focusing on optimizing mail solutions for standard letters, IMS’ consulting
service advises customers on how to conduct market- and client-focused
direct marketing activities in foreign markets.
IPP is in charge of product management for freight mail for business
customers and for sales management of international freight mail. The
task at hand is for IPP to organize an efficient logistics network in the
Net revenue generated by International Post
1996 1997
2,081
0
1,000
2,000
3,000
4,000
2,079
International Post sales volume
1996 1997
1,137
0
250
500
1,000
1,250
1,132
in DM millionsmillions of items