DHL 2006 Annual Report Download - page 35

Market shares in ocean freight 2005
Market volume for forwarding: 20.9 million TEUs1)
8.6% DHL Global
Forwarding2)
4.3% Schenker/
BAX Global
4.0% Panalpina
74.8% Other
8.3% Kühne
& Nagel
1) Twenty-foot equivalent units.
2) Pro forma.
Sources: Global Insight, annual reports/other publications
and company estimates
5.8% DHL Exel Supply Chain1)
88.4%
Other
1.3% UPS SCM
1.2% Kühne
& Nagel (incl.
ACR Logistics)1)
1.3% Wincanton
2.0% CEVA
Market shares in contract logistics 2005
Market volume: €179 billion
1) Pro forma.
Sources: annual reports, press releases, Transport
Intelligence, Datamonitor
DHL Global Forwarding also plans and undertakes major logistics projects, mostly
for the oil and energy industries.
Our forwarding activities are complemented by transport-related, value-added
services such as customs brokerage, cross-docking, pick-up and delivery or cargo
insurance to ensure the seamless transfer of cargo across borders. We also provide
consultation for our customers on matters of security. Our sophisticated IT systems
allow us to track goods in transit at all times, providing customers with maximum
visibility and control. We also develop customized programs such as integrated
order management.
Market leader in contract logistics
In our DHL Exel Supply Chain Business Unit, we provide warehousing and ground-
based transportation services. ese services are mostly performed on the basis of
long-term contracts, hence the term “contract logistics.” In the year under review, we
renewed the vast majority of existing agreements and gained new ones.
Following the acquisition of Exel in , DHL Exel Supply Chain is the market
leader, as the adjacent chart shows.
We develop and oer customized logistics solutions along the entire supply chain,
from producers to retailers and consumers. We have specialist knowledge and many
years’ experience in industrial sectors including automotive, pharmaceuticals and
healthcare, electronics and telecommunication, fast-moving consumer goods as
well as textiles and fashion. Co-pack and reverse logistics services are among the
customized value-added services we provide in addition to warehousing and ground-
based transportation.
e market for contract logistics continues to benet from the trend toward
outsourcing. Increasing numbers of companies are focusing on their core businesses
and realizing that they can save time and money by contracting out their logistics to
a service provider such as DHL.
Synergies from the freight business
In July , we added our European overland transport business to the activities of
our LOGISTICS Division. is division is now able to oer, manage and combine the
full range of forwarding services by air, sea and, in Europe, also over land.
We oer full-truckload, less-than-truckload and part-truckload services in ground-
based transportation. is range of capabilities is complemented by customs brokerage
services as well as intermodal and conventional rail freight.
e fact that the entire freight business operates on the same basic principles gives
us potential for eciency gains; we can combine volumes, buy in freight capacity
on a joint basis and exploit cross-selling opportunities within the division and with
our express business. is enables us to meet customer expectations even better and
more extensively than before, thus giving us a decisive competitive edge.
Business and Environment 31
Deutsche Post World Net Annual Report 2006
Group Management Report