DHL 2003 Annual Report Download - page 92
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We have also redesigned the technical aspects of all our procurement procedures.
Suppliers now participate in our tendering processes online using new software.
Category managers examine suppliers for criteria such as product range and credit-
worthiness. They are then invited to provide more detailed information about their
goods and prices. The category manager uses this to decide which suppliers to
approve for the Internet auction.
In May 2003, we commissioned our new procurement portal. The intranet-based
portal connects the existing Group platforms and will be the central information
and transaction platform for Group procurement in the future. It will allow procure-
ment employees to access all of the information relevant to them and use the related
applications, such as the Project and Benefit Tracking System, from any location
worldwide, and at any time. It provides transparent evidence of the effects of procure-
ment savings on earnings.
The first successes were already noticeable in 2003. For instance, we significantly
improved procurement conditions in the “packaging” and “fleet vehicles” categories.
These savings are felt particularly by our subsidiaries. Further savings potential is
emerging for early 2004 due to the improved progress in implementing these measures
in the other product categories.
DHL Danzas Air & Ocean and DHL Express mainly purchase commercial air
freight capacity. We have also bundled our procurement activities in this area and
created a highly reliable procedure through long-term alliances. We enter into agree-
ments with selected core carriers for guaranteed freight capacity and competitive rates.
The capacities agreed on depend on the volumes on individual routes. DHL Danzas
Air & Ocean also use freight capacities of their own DHL aircraft fleet in the entire
network. The focus in this area is on Europe. We buy additional capacities on the spot
market. One of the value creation initiatives, “Starbroker”, aims to optimize freight
procurement and control air freight volumes. This allows us to manage capacity bottle-
necks and surpluses more efficiently.
New revenue and income potential developed
Deutsche Post World Net provides services. The Group does not conduct research and
development in the narrower sense, comparable with the activities of manufacturing
companies in this area.