DHL 2002 Annual Report Download - page 28

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Economic Environment
Economy recovers only slowly
The global economy experienced another disappointing year in 2002. In the US,for
example, gross domestic product (GDP) rose only 2.4%. Although interest rates were
at historically low levels, growing signs of recovery at the beginning of the year were
quashed in the fall by the Iraq crisis and the accompanying sharp rises in oil prices.
After a prolonged recession, the Japanese economy stabilized at only a low level in the
year under review. Japan’s GDP fell by an average of 0.3% over the course of the year.
In light of this global economic environment as well as its own structural problems,
Europe also recorded weak economic development. GDP in the euro zone rose by a
mere 0.8%.
In this scenario, hopes for an economic upturn in Germany also failed to
materialize. Although the German economy picked up slightly in 2002 after a difficult
phase in the second half of 2001, GDP grew by a mere 0.2%. Increasing unemployment
and a decline in real incomes depressed consumer spending. In addition, plunging
share prices on the international stock markets resulted in asset losses, putting a further
damper on consumer spending and hampering companies’ attempts to secure external
financing. As a result, already wary market participants became even more reluctant
to invest. Even exports, which have often served as the motor of the German economy
in the past, were unable to offset these trends significantly, with growth of 2.9%.
Growing opportunities for global providers
The international logistics market was again characterized by increasing globalization
in 2002. This in turn saw two trends emerging on the customer side that are gaining
momentum as a result of the need for consistent cost management. On the one hand,
the search for cost-effective procurement markets is gaining in global importance.
This requires a global logistics network. On the other hand,
companies are increasingly outsourcing corporate functions that lie outside their core
competency and can only be undertaken internally at great expense. As a result,
companies are increasingly willing to outsource logistics services and are demanding
fault-free, on-time logistics activities along the entire value added chain. Furthermore,
a growing number of customers want these services as part of one-stop shopping
solutions. A modern logistics company must therefore be able to meet virtually all of its
customers’ logistics needs, as well as being globally focused.
This demand for the most comprehensive service provision possible set in
motion a concentration process on the supply side that picked up additional speed in
the year under review. Deutsche Post World Net has secured an excellent starting
position by making targeted acquisitions over the past few years. This will allow the
Group to further expand its position as one of the world’s leading logistics service
providers.
“global sourcing”
Global sourcing: strategic
procurement concept with an
international focus. A cross-border
search is conducted for suitable
suppliers that meet specific quality,
time and price requirements.
27
Management Report
Overview/Economic Environment