DHL 2007 Annual Report Download - page 66
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Deutsche Post World Net Annual Report 2007
Global market leader in contract logistics
Our DHL Exel Supply Chain Business Unit remains the world leader in contract
logistics. Within this area of our business we provide warehousing and ground-
based transport services plus specialist sector-based value-added solutions along the
entire supply chain. In the year under review, we renewed the majority of existing
agreements and gained new ones with existing and new customers in all regions and
sectors.
Our teams not only have expert knowledge of logistics but also have specialist know-
ledge and many years’ experience in our key sectors including automotive, life sci-
ences, technology, fast-moving consumer goods as well as retail and fashion. Within
the business we are now developing and strengthening speci c sector-based solutions
to meet the needs of our customers precisely. ese have included strengthening our
o ering in packaging and contract manufacturing and o ering a consultative design
element as well as implementing and operating supply chains for our customers.
Number two in European freight business
DHL Freight operated as an independent business unit in the LOGISTICS Division
for the rst full year in . We run a comprehensive less-than-truckload network
covering Europe, Russia and tra c into the Middle East with terminals. Our
strong full-truckload business is complemented by a fast growing intermodal service.
Additionally we o er a comprehensive range of customs services. In the year the
European road transport market grew at around . with the international market
growing faster (.) than the domestic market (.).
e business model of DHL Freight is asset-light. Trucking and a high percentage of
cartage and handling is outsourced. We work closely together with Parcel Germany,
EXPRESS and the other logistics business units by sharing IT systems, teaming up
for joint product o erings and delivering reliable transport solutions to all of these
units – thus leveraging the purchasing power and competence of DHL Freight for
the whole Group.
Strategy and goals
In , customers have bene ted from our integrated approach to the supply chain.
Uniquely, we can now o er a logistics and express service with the greatest global
reach. We are establishing improvement targets for each business unit and function,
working in parallel with the recently launched capital markets programme.
Our customers regularly highlight the need for proactivity and innovation and we
have addressed this need in several ways. We have, for example, added to our capa-
bilities within the life science arena; similarly, retail customers have bene ted from
the introduction of o erings such as demand planning and a strengthening of our
co-pack manufacturing services to consumer customers. We have also developed
1) Company estimates.
Sources: annual reports, press releases, company websites,
Transport Intelligence, analysts’ reports
Market shares in
contract logistics, 2006
Market volume: €192.7 billion1)
6.2% DHL Exel Supply Chain
1.4% Wincanton
1.8% CEVA
1.3% Kühne + Nagel
1.2% UPS SCM
1) Total for fourteen European countries, excluding
bulk and specialties transport.
Sources: MRSC freight reports 2006 and 2007,
Eurostat 2006, annual reports, press releases,
company websites, estimates
Market shares in European
road transport, 2006
Market volume: €157.2 billion1)
2.6% Schenker
1.6% DSV
2.0% DHL Freight
1.3% Geodis
1.1% Dachser
Strategy and goals, page 30