DHL 1998 Annual Report Download - page 47

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43
Value-added logistics services A promising business
We want to put our customers in a position to concentrate on their core
business. For this reason, we are extending our range of straight distribu-
tion services along the entire value-added chain. Our subsidiary Deutsche
Post Kontrakt Logistik GmbH can take charge of the entire value-added
chain for our customers – handling everything from order acceptance and
physical consolidation all the way to collection and dunning. Within its
first year of operation, Deutsche Post Kontrakt Logistik GmbH quickly
established itself in the marketplace as a specialist for parcel mail-related
contract logistics. By directing its marketing efforts to targeted industries,
Deutsche Post Kontrakt Logistik GmbH has been able to up its sales volume.
As a result of these two factors, it has generated a high level of awareness
among customers and, concomitantly, unusually high growth rates in the
contract logistics market segment.
Growth proceeded according to plan during the 1998 business year.
Production capacity at the Troisdorf Logistics Center was doubled. Having
targeted the fashion logistics/corporate fashion industry, we succeeded in
entering this market with the implementation of our Corporate Fashion
project. To back up the work of the Stuttgart Logistics Center which was
already online, a special department for shoe industry logistics was set up
at our Munich Logistics Center. Deutsche Post Kontrakt Logistik GmbH
was able to expand its share of the German market in this segment from
20 per cent in 1997 to more than 25 per cent in 1998. One reason for this
strong performance was our success in recruiting Salamander AG, an
international shoe manufacturer, as a customer.
Our acquisition of two key accounts in the mail order logistics business
Tchibo and Völkner – opened the door to another market we had targeted.
Starting in spring1999, several million items will be processed and prepared
at our facilities in Bremen and Brunswick for delivery to end customers.
In addition, Deutsche Post Kontrakt Logistik GmbH will be expanding
its strong position in other target industries where it is already operating
(shoes, corporate fashion, mail order business), using well-aimed cus-
tomer-loyalty measures and extending its vertical range of services.
Deutsche Post Kontrakt
Logistik was able to
establish itself in the
fashion logistics industry
with its Corporate
Fashion project