DHL 2004 Annual Report Download - page 52

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The global market volume for contract logistics in 2003 was estimated at €148 bil-
lion. Two factors are of decisive importance to growth: companies that outsource their
logistics to specialized service providers not only realize cost advantages, but also give
themselves scope for development and can concentrate their efforts on their own core
competencies. Outsourced logistics thus benefit our customers by offering more com-
petitive cost structures and improved value added.
The market for contract logistics is fragmented: even the larger international service
providers have only a relatively small market share, as the following table shows. In addi-
tion, there are numerous small providers that specialize in particular regions and/
or types of content. Increasingly, companies are concentrating their choice of contract
logistics partners on a small number of internationally focused providers.
Market shares in contract logistics
Market volume: €148 billion
in %
2003
Exel 2.7
TNT Logistics 2.5
Tibbett & Britten 1.6
Penske Logistik 1.3
Thiel 1.2
DHL Solutions 1.1
Ryder 1.0
Wincanton 1.0
Source: annual reports, Transport Intelligence
German banking market remains hard-fought
In a continued difficult market environment, German banks were financially better
positioned in 2004 compared to the previous year – they reduced their costs and, in part,
were also able to improve their earnings. However, in general German banks are trailing
their European competitors in profitability and in efficiency due to heavy market frag-
mentation and the existence of significant overcapacities, particularly in retail banking.
This is a highly competitive segment, made more so by the major banks’ renewed interest
in private customer business following a spate of corporate insolvencies. A stable trend
with ongoing earnings potential continues to be business process outsourcing: for example,
the technical processing of banking services, known as transaction banking, is increas-
ingly being transferred to specialized institutions.
In the year under review, Postbank was the leading single institution in the German
retail banking market with 12.1 million customers and customer deposits of € 71.7 billion.
Its market share in terms of market penetration amounted to 9.2% in 2003. According to
calculations based on Bundesbank statistics, it had a 5.1% share of the deposit business in
2004, while its share of private checking accounts was 6.3%. Postbank is a leading provider
of domestic payment transaction services for corporate customers. Its share of the market
for transaction banking increased in 2004 from 6% to 16% after it took over payment
transactions for Dresdner Bank and Deutsche Bank.
48