Deutsche Post DHL

2009

March - Deutsche Post World Net (DPWN) is no more. Now known as Deutsche Post DHL, the Germany-based global mail, express and logistics company outlined the thinking behind that corporate rebranding and clarified its future corporate direction in what it calls 'Strategy 2015'.

Speaking at a briefing for analysts the Deutsche Post DHL's CEO, said the corporate name change clarified the company structure, "increased cooperation and mobility within the group and integrated solutions for customers".

Specifically, the company was being reorganised at the corporate level into two 'pillars'.

They were:

1. Deutsche Post, which would be the mail business
2. and DHL which will be everything else, including DHL Express, DHL SupplyChain/CIS and DHL Forwarding/Freight.

As it admitted, the company had experienced a considerable degree of change at the senior level and he wanted to shift the emphasis of strategy to "more execution based rather than board moves".

Although the SupplyChain/CIS and Forwarding/Freight divisions will remain separate, the company was looking to improve their relationship by creating 'solutions co-branding'. For example, it wanted to spread to other sectors the sorts of logistics offerings that DHL Supply Chain had in its hi-tech spare parts logistics business.

Deutsche Post DHL is the global market leader for logistics. Its Deutsche Post and DHL brands (Postbank is now a discontinued operation since the third quarter of 2008) represent a wide range of services for managing and transporting mail, goods and information employing some 500,000 employees in more than 220 countries. 

It had revenues in 2007 of €63.5bn which included Postbank, net of Postbank the revenues were €54.0bn which compared with revenues of  €54.5bn in 2008.  Its businesses include those formerly owned by such names as  Danzas, DHL, AEI, Airborne, ASG, Nedlloyd and Exel.

It has adopted a strategy of acquisitive growth worldwide with the clearly expressed aim of being the world's leading mail, express and logistics provider. It has spent in the region of €10bn on 70 companies since 1997.  After such an expansive acquisition programme in 2007 DPWN aims to focus on organic growth and attracting new customers.

Since the sale of Postbank DPWN is divided into three main operating units: mail, express and logistics.

History

Deutsche Post World Net (DPWN) has its origins in the former German state mail, telecoms and post saving bank. In 1989, the German government decided to split these business functions and give them separate management structures.  In 1995 legislation was passed, which turned Deutsche Post from a government department into a private company. This enabled the management to work towards the privatisation of the company, which was partly achieved in November 2000. At this time the German government sold 31% of Deutsche Post, realising €6.6bn from the sale. 

Deutsche Post entered the air express market by taking a strategic stake in DHL in the late 1990s. By 2002 it had obtained control of DHL and began to develop DHL as its flagship brand. In 2003 DPWN, through DHL, has acquired the US express service provider Airborne Inc, (at an acquisition cost of €983m) and now has a ground and air transport network at its disposal in the USA, the world's largest express market. It operates its own fleet of aircraft as well as using third party air cargo carriers and belly hold capacity of scheduled airlines.