DHL 1999 Annual Report Download - page 57

Express
63
Production capacity expanded
Many of our parcel sorting centers in Germany reached
their capacity limits in 1999. In response, we optimized
work processes and installed new conveyance systems in
a number of parcel sorting centers.As a result of these
measures, we were able to extend our capacity substan-
tially while maintaining costs at approximately the same
level. Teaming up with Deutsche Bahn railways, we
ensure problem-free transport of parcels in the time-sen-
sitive courier/express/parcel (CEP) market with our Par-
cel Intercity project. Further, by shifting road transports
onto the rail,we contribute to environmental protection.
Improved quality using TQM
Our previously established Total Quality Management
system continued to produce positive results in 1999.
The constructive work done in our quality control
groups was continued through the year.A total of 3,247
of our employees have undergone training in this area
in Germany. Their inclusion in these groups led to a
marked improvement in motivation and quality levels.
In Germany,parcels were delivered within an average of
1.1 days following their dispatch.
Express Europe – On the up and up
Revenue generated by the Express Europe business seg-
ment in 1999 increased by 15.2 percent over the pre-
vious year. The market for items destined for other
countries is subject to strong pricing pressure. Distinc-
tions must,however,be made between the various types
of products. With virtually no change in prices, we
doubled both sales and revenue for small parcels.
Despite noticeable price competition, we were able to
compensate for lower prices by generating greater sales
in the higher-end business parcels area. The picture
looks somewhat different for cross-border items.
In this category, revenue grew, in conjunction with
upward price movement and increased volumes,by 42.4
percent.
As part of our efforts to gear ourselves more to the
European market, we have systematically acquired
leading transport firms or established our own pres-
ence in all important countries.As a result, we have
become the first company in Europe to operate an
integrated network in 18 countries. This year, we will
round out our European network and systematically
integrate our new team members. As part of our inte-
gration activities, we began to harmonize our product
portfolio and market approach throughout Europe last
year.As a result,we offer our customers comprehensive
international parcel and pallet distribution services.
Deutsche Post Euro Express has already successfully
positioned itself in the marketplace as a national and
international player. Our strategy also foresees
gradually establishing this business as Europe’s quality
leader.
Global Mail and International Mail – Marked
increase in revenue
The Global Mail business segment stands for interna-
tional letter mail services for business customers in the
areas of Direct Marketing, Press Distribution and Cor-
porate Communications. The International Mail business
segment is in charge of the import and export of interna-
tional letter items to and from Germany.Overall revenue
continued to develop well in 1999,increasing by 11.5 per-
cent over the previous year’s level. This positive perfor-
mance was due to the development of new products and
services which are geared to the needs of special custom-
er groups. Further contributing factors include our
strong focus on the quality of our service and the system-
atic geographic expansion of Global Mail’s operations.
Corporate Division