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DHL - Dalsey Hillblom Lynn

CEO: Ken Allen


Founded: 1969, San Francisco, California, United States
Acquisition date: 2002
Subsidiaries: Blue Dart Aviation, DHL Air UK, DHL Aviation, more
Parent organization: Deutsche Post
Founders: Adrian Dalsey, Larry Hillblom, Robert Lynn
DHL Express is a division of the German logistics company Deutsche Post
DHL providing international express mail services. Deutsche Post is the world's
largest logistics company operating around the world, particularly in sea and air
mail.
Originally founded in 1969 to deliver documents between San
Francisco and Honolulu, the company expanded its service throughout the world
by the late 1970s. The company was primarily interested in offshore and intercontinental deliveries, but the success of FedEx prompted their own intra-US
expansion starting in 1983. DHL expanded to countries that could not be served by
any other delivery service, including Cuba, the Soviet Union, Eastern
Bloc, Iraq, Iran, China, Vietnam and North Korea.
In 1998, Deutsche Post began to acquire shares in DHL. It finally reached majority
ownership in 2001, and completed the purchase in 2002. Deutsche Post then
effectively absorbed DHL into its Express division, while expanding the use of the
DHL brand to other Deutsche Post divisions, business units and subsidiaries.
Today, DHL Express shares its DHL brand with other Deutsche Post business
units, such as DHL Global Forwarding and DHL Supply Chain.

Origin:
Larry Hillblom was studying law at University of California, Berkeley's Boalt Hall
School of Law in the late 1960s and had little money. He started running courier

duty between San Francisco and Los Angeles, picking up packages for the last
flight of the day, and returning on the first flight the next morning, up to five times
a week.
When he graduated, Hillblom decided to go into the courier business himself. He
found a niche that no other company was filling, to flybills of lading from San
Francisco to Honolulu.By flying the documents ahead of the freight they could be
processed prior to vessel arrival and save valuable time after arrival.

Our vision and mission:


In 2009, in our 2015 Strategy we presented our future goals, including the mission
and vision of the concern. The vision of our company is to become a logistics
company for the entire world. It is not about a simple statement that as a global
company we operate in over 220 countries and regions or that we are often the first
logistics company to enter new markets. Our vision shows that we want to be a
logistics company that people will come to - we want to be their first choice not
only by providing their mail, but also as an employer or investor.
It is clearly visible in our mission, which consists of four elements:

We want to simplify the lives of our customers

We contribute to the successes of our customers, employees, and investors

We significantly contribute to the success of the world

We always show respect when trying to meet our targets


We succeed together with our customers
We believe that the accomplishment of all these goals is in the interest of the
concern but also in the interest of all our stakeholders: customers, employees,
investors, and the entire globe. By cooperating with our company the customers
benefit from excellent services or products, through the involvement of our
employees and supporting their talents or as a reliable, long-term stock investment.
Our works and our societies use different programmes implemented as part of the
social responsibility under the Living Responsibility motto.

Company with a purpose


We are proud of our contribution to everyday work. Everything that is transported
from one place to another requires logistic support - but there are millions of
stories behind this simple truth. As a logistics company, we form the basis of trade
for the world since we deliver whatever needs to be delivered. The parcel entrusted
to us may contain lifesaving drugs or a birthday present from a friend or a
prototype deciding about the future of a company. We deliver not only parcels but
we also ensure that containers reach the ports: we deliver good luck, transport
health, power development, and bring joy. Every day, we connect people and
improve their lives.

Corporate Strategy:
Strategy 2015 our Group-wide framework
In 2009, we introduced our Strategy 2015, which represents the Group-wide
framework for our vision, mission, values and objectives. Our guiding principle is
to remain the postal service for Germany and to become thelogistics company for
the world. The mission associated with this principle reflects our values and
customer promise, namely:
We want to make our customers, employees and investors more successful, we
always show respect, without compromising on results; we make our customers
lives easier and we want to be a part of making our world a better place in which to
live. To this end, our strategy pursues three key objectives: we want to become the
provider of choice for customers, the employer of choice for our staff and
prospective employees and an attractive investment for shareholders. Our progress
is routinely measured using indicators relevant for internal management.
In the reporting year, significant progress was again made on a Group-wide basis.
This is reflected, for example, in customer satisfaction rates, the results of our
annual employee opinion survey as well as the development of key financial
figures such as EBIT, EAC and operating cash flow. Our ranking in "Fortune
Worlds most admired companies 2013" also reflects how satisfied customers and
employees are with Deutsche Post DHL: we come out top in our industry.

In 2014 we shall focus primarily on increasing profitability and generating cash.

Domestic expansion:
In the 1970s, DHL was an international delivery company, and the only one
offering overnight service. The only major competitor in the overnight market
was Federal Express (FedEx), which did not open its first international service
until 1981, expanding to Toronto, Ontario, Canada. Nevertheless, the domestic
market was extremely profitable, and DHL was the third largest courier behind
FedEx and the UPS.

Services:
DHL Express's global headquarters are part of the Deutsche Post headquarters in
Bonn.
Headquarters for the Americas are located in Plantation, Florida, USA, while its
Asia-Pacific
and
emerging
markets
headquarters
are
located
in Singapore, Malaysia, Hong Kongand China. The European hub is in Leipzig,
Germany.
Most of DHL Express' business is incorporated as DHL International GmbH.
Major competitors include FedEx, UPS, TOLL, TNT and national post carriers
such as United States Postal Service and Royal Mail. However, DHL has a minor
partnership with the USPS, which allows DHL to deliver small packages to the
recipient through the USPS network known as DHL Global Mail. It is also the sole
provider for transferring USPS mail in and out of Iraq and Afghanistan.
DHL offers worldwide services, including deliveries to countries such
as Iraq, Afghanistan, and Myanmar (formerly named Burma). As it is Germanowned, DHL is not affected by US embargoes or sanctions and will ship
to Cuba and North Korea. However, there are strict codes for delivering to North
Korea, as the country has shaky relations with the West.

As DHL is not a US company, it is not allowed to make domestic flights between


U.S. airports. DHL contracts these services to other providers.

DHL aviation:

Deutsche Post owns five airline subsidiaries operating for DHL Express, operating
a total of 96 aircraft and another 21 aircraft on orders, which are collectively
referred to as DHL Aviation:

Blue Dart Aviation, Chennai, India, provides


destinations from Chennai International Airport

DHL Aero Expreso, Panama City, Panama provides


destinations in Central and South America

DHL Air UK, Hounslow, United Kingdom provides services for European
destinations from East Midlands Airport

European Air Transport, Leipzig, Germany provides services for European


destinations from Leipzig/Halle Airport

SNAS/DHL, Bahrain provides services


from Bahrain International Airport.

services

for Middle

for

Indian

services

for

East destinations

A GLOBAL CULTURE:
We possess an active, open corporate culture which helps us attract and retain
highly talented people. We aim to become the Employer of Choice in our sector.
Our Employer Value Proposition (EVP) was established in 2010 and defines our
employer brand identity.
Our EVP consists of three key elements:

Growth: We give our employees a diverse range of opportunities to develop


professionally and personally.

Impact: We empower our employees to contribute their ideas and skills and
influence the success of the company.

Pride: We give our employees the opportunity to be a part of an organization


that makes a contribution to society as well as to the world of logistics.
DHL graduates are given real responsibility and challenges to encourage them to
grow, both personally and professionally. They are empowered to take the
initiative, actively get involved in different teams and achieve high impact results
that really make a difference to our business and customers. Our graduates are
proud to be part of a diverse team and contribute to society through completing
community projects.
DHL Instilled A Customer-Focused Mentality Among Its Employees:
Why, anybody can have a brain. Thats a very mediocre commodity. Every
pusillanimous creature that crawls on the earth-or slinks through slimy seas has a
brain! Noel Langleys Wizard of Oz
Its not enough to have a brain. You need a diploma or a certificate. Logistics
company DHL Express took this to heart and trained every single one of its
employees to be Certified International Specialists. As useless as a clockwork heart
or a toy medal? Not so. This was all about changing the culture.
Refocus
DHL determined to refocus its business on customer centricity and international
products in line with its brand attributes: global expertise, service excellence and
international focus. To do so, DHL leaders knew they needed to involve the

employees. With this in mind, they cascaded the training from top to bottom,
training the trainers and leaders first, and then having them train others, drawing on
their own personal examples.

BRAVE Culture Change


Culture may be an organizations only truly sustainable competitive advantage, but
changing it is hard. The best approach is to pick one dimension and change that
first. This is exactly what DHL Express did through a change management
program that U.S. CEO, Ian Clough, piloted within his U.S. organization. They
changed the organizations mindset the A in BRAVE culture. (Behaviors,
Relationships, Attitudes, Values and Environment).
As Clough explained to me, where before if people didnt know where a package
was supposed to go, they guessed. If a package was sitting, people let it sit. Now
people ask, call out to their supervisors and get things moving. Thats a
fundamental and valuable attitude change. The general standard for shipments left
behind at a hub at the end of the night is 500-600. With this change in attitude,
DHL Express has reduced that by over 97 percent.
The key was getting everyone to think about whats inside the packages they are
handling. People feel very differently about cardboard boxes than they do about
grandmas Christmas gift or an important document.

Moments of Impact:
The training was an important moment of impact. Clough and team set it up by
giving people 4-6 weeks notice of the training from their supervisors and
conducting the training during normal shift hours. As follow ups, there are
continual sets of additional training to refresh and recertify. And the basic training
has been embedded in DHLs new employee onboarding process.
What was initially piloted in the U.S. has now been transformed and adopted as a
global program involving 100,000 DHL Express employees worldwide
reinforcing and reinvigorating the companys corporate culture, equipping its
employees with fundamental skills in cross-border shipping and helping focus their
attention on international growth.

Implications for you


Impact Start by clarifying the result you seek and the impact youre looking to
make. No one appreciates change for changes sake. No one appreciates
investments that dont pay off. Let the result drive the required changes and
investments.
Dimension Choose one cultural dimension to change likely attitude. Trying to
do too much at the same time produces lots of activity and little impact. Distracting
at best. Counter-productive in many cases.
Chunks Make the change in chunks, step by step, likely starting with the
leadership team and moving out from there.
Fundamentally Logistics is concerned with ensuring the availability of :

the RIGHT product,


in the RIGHT quantity and
RIGHT condition,
at the RIGHT place,
at the RIGHT time,
for the RIGHT customer,
at the RIGHT costs

Challenges:

Delivery performance
Perfect order fulfillment
Managing service experience
Inventory Management
Maintaining manpower

Other details:
http://www.slideshare.net/leendertvandelft/dhl-express-2011
http://www.slideshare.net/vijayjha27/dhl-logistics

http://www.powershow.com/view/3446eNGIyM/DHL_A_leader_in_logistics_powerpoint_ppt_presentation
http://www.slideshare.net/CCIusm/dhl-6445005?related=3

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