DHL 2006 Annual Report Download - page 84

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Future capital expenditure
Planned capital expenditure in  is slightly above the prior-year level. e
largest share is earmarked for property, plant, and equipment. Key divisional capital
expenditure plans are outlined in the future business section. As to cross-divisional
activities, we will continue to renew our German vehicle eet and to improve IT
infrastructure for our globally operating data centers.
Opportunities
Opportunities relating to trends in the economic environment
Globalization is on the rise, and the world’s economy is becoming increasingly
interconnected. Facing ever greater competition, companies are forced to concentrate
on their core competencies while leveraging the advantages of global procurement
markets. For this reason, they rely on logistics partners with extensive reach and
expertise in complex, global supply chains. As an international logistics company,
Deutsche Post World Net will benet from this trend.
Although deregulation of the mail market is progressing at dierent speeds in
various European countries, we have opportunities to progressively strengthen our
competitive position in European markets that are currently still closed to us or are
strictly regulated.
As a key communications platform of the future, the Internet poses new challenges for
the logistics industry. Although companies and their customers are oen geographically
separated, consumers expect rapid deliveries. is calls for specialists with simple and
transparent logistics solutions. As communications become increasingly digital, new
markets emerge for our company in which we can sell new products and services.
Business strategy opportunities
Our goal is to become the worlds preferred logistics service provider. Our First
Choice quality program represents our eort to increase customer loyalty in the
competitive logistics market and to also attract new customers.
e Deutsche Post, DHL and Postbank brands stand for integrated services and
tailored solutions for the management and transportation of mail, goods and
information. Our range of services and geographical reach are increasingly making
us the preferred logistics partner to discerning global clients.
Performance and profitability opportunities
We are in the process of transferring the Parcel unit in Germany from the EXPRESS
Division to the MAIL Division, thereby consolidating the German mail and parcel
business. is step enables us to improve our internal workows and service
quality while also cutting costs. We continually strive to optimize our transportation
and delivery network so that we can become even better at meeting our
customers’ needs.
80
Deutsche Post World Net Annual Report 2006