DHL 1999 Annual Report Download - page 24

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23
leadership – together with our Euro Express partners
in Europes attractive courier/express/parcel market.
In this area we offer customers an efficient, Europe-
wide network which we were able to realize largely
through pinpointed acquisitions.Our external revenue-
sales grew by 28.5 percent over 1998, clear evidence of
our increased pan-European focus.
Deutsche Posts strategic answers to the trend in
the European parcel service market – A uniform
network for 420 million people
Using its acquisitions of Danzas, Nedlloyd’s European
transport division and ASG as a springboard,our LOGIS-
TICS corporate division has become the top European
provider in the surface transport area of Europes dynam-
ic, fast-growing logistics market. Not only does the
LOGISTICS corporate division operate the largest pan-
European network and offer a correspondingly broad
range of services, it has also set the stage to take over
cost leadership in Europe. Danzas is the global leader in
the air forwarding business not least of all due to its
acquisition of the U.S.-based air freight carrier AEI in
February 2000.AEI operates 249 branch offices (includ-
ing joint ventures) in 41 countries around the world.
Deutsche Post World Net is consequently very strongly
positioned as a global provider of transport and logistics
services with a presence (including AEI) in more than
140 countries around the globe.
4.2. Expanding our product base and value-
added services
In a step to meet the trend toward one-stop-shopping
and single-sourcing, we continued to round out our
product range last year. Today, we are in a position to
offer services in all weight and dispatch categories
along with a wide variety of possible transit times. By
adding Danzas to our Group, we were also able to add
to our own range all the conventional forwarding and
logistics services that had been missing in Deutsche
Post AG’s product portfolio to date.These include con-
tainer shipments, European ground traffic, sea and air
forwarding. Add to this value-added services like
supply chain management which are offered for both
trade and industry.
Today, customers find in Deutsche Post World Net a
competent partner for outsourcing logistics services
falling outside their core business.We have the compe-
tence today to offer a substantial number of services
on a one-stop-shopping basis for physical, electronic
and financial processing needs.Both sides benefit from
this business model.The customer has a partner for all
his or her logistics needs. The joint use of warehouse
space and logistics facilities opens up economies of
scale for our own operations.
Having expanded our servicesvertical value-added
range, we can now offer services that are located
upstream from transport activities services such as
warehouse management, commissioning and packag-
ing – as well as downstream’services such as invoice
dispatch and returns management. The ability to
offer financial services also gives rise to further
opportunities in this area. In the future, we will, for
example, also be able to handle all payment transac-
tions for our customers deliveries and to finance
inventories.
Management Report