DHL 1999 Annual Report Download - page 69

76
Eurocargo – No.1 in Europe
The Eurocargo business unit (European ground trans-
port) is also able to look back on a good year.Following
its integration of ASG and Nedlloyd ETD, Eurocargo is
now the No.1 European ground transport business.The
integration of Nedlloyd, Unitrans, Nedlloyd NTO and
the Nedlloyd subsidiary Gerlach into our Eurocargo
business unit provided the springboard for expanding
our good market position into market leadership. The
last of the geographic gaps in our map were closed with
the acquisition of the Irish logistics provider Meadows-
freight and the signing of a cooperational agreement
with Securicor Omega International for groupage and
less-than-truck load shipments in the U.K.. The future
will also see the release of further synergies within
Deutsche Post World Net, thanks to Deutsche Post
Transport GmbH’s (DPT) incorporation into Euro-
cargo’s operations.
Our formula for success – Information techno-
logy and systematic cost management
The improvement in last year’s results was due not only
to the expansion of our business activities but also to a
rigorous cost management which falls under the re-
sponsibility of the individual business units.At Danzas,
1999 was strongly shaped by the integration of newly
acquired companies, which generated synergies on the
one hand and continues to entail restructuring on the
other.The cost-saving synergies these activities released
significantly strengthened our purchasing position.
This was enhanced by savings arising from the consoli-
dation of branch offices. Eliminating duplication in the
IT field also cut costs. Looking at the medium-term,
cross-selling effects in particular will produce further
revenue synergies.
Information technology also contributed to the logistics
business’successful performance in 1999.We implement-
ed several new information systems during the year.
These included an expanded IT solution for tracking and
tracing purposes in the European ground transport
field, and a new application that supports work in our
terminals. Our some 800 IT experts around the world
made a valuable contribution toward the integration of
Nedlloyd ETD and ASG by bringing the various IT plat-
forms used by these companies in line with one another.
Our IT team is currently developing new applications
and integrating AEI’s software.
The outlook – On our way to becoming No. 1
worldw ide
Under Danzas’s direction,the LOGISTICS corporate divi-
sion will continue to systematically pursue its strategy
throughout the current business year. This strategy is
aimed at establishing Danzas – under the Deutsche Post
World Net banner – as the world’s leading logistics pro-
vider and at putting synergies with other corporate
divisions to work. The LOGISTICS corporate division
will mobilize all available forces to selectively strengthen
its leading position in the marketplace and boost its
profitability further.
Growing this business with integrated, customized
logistics solutions is one of the goals we have set.In May
2000, we will bring the three previously independent
business units Consumer Solutions, Industry Solutions
and Specialties together under the name Solutions.We
undertook this reorganization of our customized solu-
tions to make Danzas’s logistics products and services
more easily accessible to customers. The new Solutions
business unit will continue to focus on the key auto-
motive, electronic,textile,pharmaceutical and telecom-
munications industries and on fast-moving consumer
goods. As part of these activities, Danzas’s range of
value-added services will be continually optimized and
expanded. Other strategic goals include generating
internal and external growth and, consequently,enlarg-
ing our worldwide network. This goes hand in hand
with securing and continually improving our market
position in all business segments.