3PL/Logistics

Deutsche Post World Net will now operate under the new name of Deutsche Post DHL, with a two-pillar strategy based on mail and logistics

Following an aggressive expansion in recent years, DPWN CEO Frank Appel said that the new focus will help unlock the company's potential to increase organic growth

"We have to improve if we want to maintain long-term relationships with our employees, customers and shareholders And we can improve tremendously if we systematically address our weaknesses," said Appel "We do not have to reinvent the Group We just have to make more out of what we have"

The new Group strategy provides for a two-tier structure with MAIL and DHL as well as tighter links between the three DHL divisions, the latter being facilitated by the creation of an additional overarching executive committee

In light of the current economic crisis, the Group's short-term goal is to maintain a solid cash position and reduce costs further A key component of this effort will be the IndEx program announced in November as one of the elements of the Roadmap to Value capital markets program, which is aimed at generating savings of at least €1 billion in non-operating costs by the end of 2010

One DHL

• The collaboration between the DHL divisions will be accelerated by an executive committee whose function will be to facilitate co-operation among the three DHL divisions: Global Forwarding/ Freight, Express and Supply Chain

• Specific target sectors such as life sciences, technology and automotive will be promoted under a dedicated sector management

• A new organisational unit called ‘DHL Solutions & Innovation' will bundle all previous innovation activities to offer customer-specific solutions with the help of new technologies

MAIL - Deutsche Post

• The Mail division will refocus its core business, primarily concentrating on the integration of physical and digital solutions in dialogue marketing It will also introduce an online letter to provide secure electronic communications as well as integrated sender and recipient services at Parcel Germany

• To meet these objectives, the Mail division plans to step up investments in the coming years and may also consider partnerships

Leadership

• A new guiding principle based on the idea of ‘Respect and Results' is designed to markedly increase the level of employee involvement and commitment Openness and responsibility are central to this end, and future executives will need cross-divisional experience in order to promote communication among the Group's divisions

• A new incentive system is designed to underscore performance differences and reward extraordinary contributions

Results planning and review

• The dialogue between the Group's HQ and the business units will be simplified and more focused

• The finance and strategy areas will work more closely together to help the corporate board set group-wide targets that will be broken down to the individual units

• The financial planning process will be streamlined in terms of time, and the results will be reviewed more systematically

Strategic programs and initiatives

• Current strategic initiatives will fit seamlessly into the Group's new direction This applies in particular to First Choice, the program to increase customer loyalty that was introduced in 2007

• The capital markets program Roadmap to Value aimed at generating cash and increasing profitability will also be vigorously pursued further

• In the area of corporate social responsibility, the Group will concentrate on the GoGreen climate protection program and DHL's Disaster Response Teams, as well as education and training programs such as Teach First

"Strategy 2015 is the right tool to get the engines of this company burning and tap the potential that is locked inside," concluded Appel