Economics and management in the field of ict

1.3. Logistics activities of foreign companies.

DHL is an international courier, parcel delivery and express mail service, a division of the German logistics firm Deutsche Post. The company delivers more than 1.5 billion parcels a year.

The company was founded in 1969 in San Francisco, USA and expanded its services worldwide until the late 1970s. In 1979, a company called DHL Air Cargo entered the Hawaiian Islands with an inter-island cargo service using two DC-3 and four DC-6 aircraft. Until the final bankruptcy doors closed in 1983, Dalsey and Hillblom personally oversaw day-to-day operations. At its peak, DHL Air Cargo employed more than 100 workers, management and pilots.

The company was primarily interested in offshore and intercontinental deliveries, but FedEx’s success has led to its expansion within the U.S. since 1983.

4-picture. (DHL express).

Hillblom set aside a portion of the student loans to start the company, and in partnership with two friends, Adrian Dalsey and Robert Lynn, cited the initials of their last names as company names (DHL). They shared with the Plymouth Duster that they drove around San Francisco to pick up documents in suitcases, then ran to the airport to book flights using another relatively new invention - a corporate credit card. As the business grew, they began hiring new couriers to join the company. Their first hires were Max and Blanche Kroll, whose apartment in Hawaii often became a temporary office for couriers.

The global headquarters of DHL Express is part of the Deutsche Post headquarters in Bonn.

Headquartered for the Americas, it is based in Plantation, Florida, and is headquartered in Singapore, Malaysia, Hong Kong, and China, with its headquarters in the Asia-Pacific and developing countries. The European center is located in Leipzig, Germany.

Most of the DHL Express business is part of DHL International GmbH. Major competitors include national mail carriers such as FedEx, UPS and U.S. Postal Service (USPS) and Royal Mail. At the same time, DHL has a small partnership with USPS, which allows DHL to deliver small packages to the recipient through a USPS network called DHL Global Mail, also known as DHL e-commerce. It is also the only provider of USPS mailing messages to Iraq and Afghanistan and beyond.

DHL offers services around the world, including delivery to countries such as Iraq, Afghanistan and Myanmar (formerly Burma). As it belongs to Germany, DHL will not be affected by U.S. sanctions and will deliver to Cuba and North Korea. However, there are strict codes for deliveries to North Korea as the country weakens relations with the West.

DHL is no longer allowed to operate domestic flights between U.S. airports as it is no longer a U.S. company. DHL enters into agreements with other providers of these services.

DHL has taken steps to control their impact on the environment using alternative fuels. DHL has modified vehicles at certain delivery fleets to use alternative fuels.

In December 2014, Deutsche Post acquired StreetScooter, a small manufacturer of electric vehicles, as a long-term goal to achieve high results in the DHL delivery process. By the end of 2016, about 2,000 cars had been produced.

In the future, electric vans with a much larger range will be required to achieve the long-term goal of replacing the entire Deutsche Post and DHL Express fleet with 7,000 vehicles on StreetScooter models.

The Deutsche Post / DHL GoGreen program plans to reduce greenhouse gas and local air pollutant emissions;

The company has four intermediate goals to be achieved by 2025. The long-term goal, summarized by CEO Frank Appel, is “From now until 2050, our task is to divert our business (related to logistics) to waste. We are setting a standard for the future of the transportation sector and achieving the goal of limiting global warming We are contributing to less than two degrees Celsius. "

As your supply chain improves, your business will change. Therefore, process improvement in DHL is a constant part of the job. The supply chain relies on DMAIC (identification, measurement, analysis, implementation, and management) methodology to improve your process to move your operations forward, which is based on manufacturing approaches. It is constantly working to identify specific opportunities, such as customer satisfaction or minimizing process flaws.

DHL process improvement programs add value in the following ways:

-Employee participation and management;

-Methods, methods are applied on various potential topics;

-A striving for better customer service;

-Ensuring discipline designed to solve community problems;

DHL’s regulatory experience ensures that compliance with government agencies and other agencies takes all solutions into account.

In DHL, the art and knowledge of analyzing the supply chain and finding ways to improve it is important. DHL’s solutions design team offers experience and support, from logistics network strategy, transportation design, warehouse design and simulation to operational improvement and inventory analysis.

DHL IT services are designed, implemented consistently, qualitatively and cost-effectively. Technology comes from a business need, not the other way around. Uses strict project management disciplines to deliver IT projects on time, on budget and with quality results. DHL’s integrated team focuses on using the best IT products available on the market to manage the product, constantly reviewing and using them when new opportunities arise. Service management operations use DHL volume to purchase IT components, software, and services to reduce costs over time.

Advantages of DHL IT solution:

All technological solutions are designed to address specific goals. The system report allows the identification of additional costs and efficiency opportunities.

Easy to use and implement.

DHL has extensive experience in designing and purchasing real estate solutions to support common storage and distribution solutions. Effectively uses size, location, knowledge, and partnerships to create advantageous real estate solutions.

Almost every decision of warehouse placement or distribution centers has real estate components. When properly tailored to commercial and supply chain objectives, a well-executed real estate strategy can make a significant contribution to achieving operational and financial goals.

Features include:

-Operations on campus increase production and transportation efficiency;

- Extensive experience in negotiating real estate contracts;

-Experience in working with the government;

-Ability to develop the business, as well as strong relationships with a number of development partners;

Experience and investment resources to develop the land to meet the needs of customers.

DHL management provides the organization with the tools and information it needs to understand every element of its operations.

During the management review process, tables and control panels are reviewed, discussions are initiated, deficiencies are addressed, and opportunities for improvement initiatives are identified.

Quality, logistics, avoidance of errors in shipments, low level of product damage, timely ordering, high productivity, perfect compliance with customer requirements and full regulatory compliance. With DHL, you can also find ways to constantly boost profits.

Deutsche Post DHL Group, the world’s leading logistics company, today announced the first results for 2020. In a difficult economic environment, the Group increased its operating profit to € 4.840 billion, thereby significantly exceeding its earnings target of € 4.1 billion. 4.4 billion in fiscal year 2020

With a wide range of logistics services, the group has benefited from the growth of global e-commerce activities and increased its consolidated revenue by 5% to $ 66.8 billion by 2020. made in euros. Evidence of revenue growth in the last fiscal year is an extraordinary positive development in this area. Express, as well as the national and international parcel business, once again accelerated the dynamic growth of shipments during the Christmas season, the network capacity was constantly used at an optimal level. At the same time, the group has achieved a high level of service without change, despite the unprecedented use of resources.

“2020 has been a great year: despite all the challenges we have faced, we have achieved a record result. Our strategy and business model turned out to be stable - even in turbulent times for the global economy. Thanks to the remarkable performance of our 550,000 employees around the world during the Kovid-19 crisis, we have made a positive contribution to people and communities. We are now focusing on distributing the Covid-19 vaccine worldwide, ”said Frank Appel, CEO of Deutsche Post DHL Group.

The group is raising its revenue targets for 2022 due to strong business performance.

In terms of positive business development, the group has raised its medium-term outlook. The group now expects growth from around 5.4 billion euros in 2020 from the base base in 2021. In addition, the group targeting 2022 is expected to be higher than 2021. The company will provide details when it announces its annual consolidated annual results for March 9, 2021 and 2023.

The total cash flow outlook from 2020 to 2022 has been revised to exceed 6 billion euros (previous: 5.0 to 6.0 billion euros). The total gross capex for this period is now expected to be around 9.5 billion euros (previous: 8.5-9.5 billion euros). That includes the impact of eight 777 cargo planes of new orders announced today.

Develop amazing cash flow with continuous investment.

Free cash flow was around 2.5 billion euros in 2020, well above the latest targets, and last exceeded 2.0 billion euros. The group is worth 1.6 billion euros from last year’s results, as well as a significant increase in market value. With total assets of 3.0 billion euros in 2020, the group has invested 100 million euros more than expected.

“Financially, the last fiscal year was a complete success. We were able to make all the planned investments for future growth and at the same time increase our profitability. We can be proud of the remarkable development of free cash flow in an economically uncertain environment. With the record result behind and the start of economic recovery, we can confidently look forward to a more positive outlook, ”said Melanie Kreis, Chief Financial Officer.

Post & Parcel Germany: Full annual revenue 16.5 billion. euros, which is 7% more than in the same period last year (4.8 billion euros, 12% compared to the same period last year). The full annual figure is 1.590 billion euros, up 29% from the previous year (670 million euros, up 28%).

Express: Full annual revenue is € 19.1 billion, up 12 per cent from last year (€ 5.6 billion, up 20 per cent from last year). The full annual figure is € 2.750 billion, up 35 per cent from last year (€ 1.040 billion, up 70 per cent from last year). In the fourth quarter, core volume grew in all regions and grew by 17% overall, bringing the year-over-year growth rate to 9%.

Global Forwarding, Freight: Full annual revenue of $ 15.9 billion. euros, which is 5% more than last year (4.4 billion euros, + 14% compared to last year). The full annual figure is € 590 million, up 13% from last year (€ 170 million, 2% from last year).

Supply Chain: Annual revenue is € 12.5 billion, down 7.5 per cent (€ 3.5 billion, down 3 per cent). The full annual figure is € 430 million, down 53 per cent from last year (€ 175 million, down 1 per cent from last year).

E-commerce solutions: Full annual revenue is € 4.8 billion, up 19% from last year (€ 1.5 billion, up 33% from last year). Full annual € 160 million, compared to last year’s loss (€ 80 million, last year’s loss).

5-picture. (FedEx).

FedEx Corporation, formerly Federal Express Corporation and later FDX Corporation, is an American multinational delivery services company headquartered in Memphis, Tennessee. The name FedEx is a syllable abbreviation of the name of the Federal Express aviation division that the company used from 1973 to 2000. FedEx is the first air delivery service today to be popular with FedEx Express. The major shipping companies that provide delivery services have launched FedEx Ground, FedEx Office (originally known as Kinko’s), FedEx Supply Chain, FedEx Freight, and many other subsidiaries. FedEx is also one of the best logistics companies in the U.S. government, helping to transport some packages of U.S. postal service through the FedEx SmartPost service.

FedEx’s popularity both in the United States and around the world has made it a widespread topic in popular culture. In addition, FedEx has acquired the rights to name the FedEx Field of the NFL Washington Football Team and the FedEx Forum of the NBA Memphis Grizzlies. FedEx’s air transportation services have made Memphis International Airport its main hub the busiest cargo airport in the U.S., the U.S. and the Western Hemisphere, and the busiest cargo airport in the world behind Hong Kong.

The FedEx logo was developed in 1994 by the Lindon Leader of Landor Associates in San Francisco. It consists of the Fed in purple and the Ex in orange. The FedEx word tag is distinguished by the fact that it contains a subliminal right-pointing arrow in the negative space between “E” and “X”, which is a property based on Univers and Futura to emphasize the shape of the arrow. achieved by creating a font. Previously Ex was a separate color for each division and platinum for the overall corporation. However, in August 2016, FedEx announced that all operating units would adopt a purple and orange logo over the next five years (same as the original FedEx logo and later used by FedEx Express).

In another hectic shipping season, FedEx Ground is also known for its new delivery technology. FedEx Ground offers a technology called Dynamic Route Optimization (DRO) to deliver packets to independent service providers.

PackageRoute deals with load balancing, route planning and navigation for FedEx Ground service providers - independent operators who manage the driver fleet in a particular area. They have begun optimizing new maps and routes to increase driver experience and efficiency, in particular:

-Owners will have a clear idea of ​​their drivers and fleet performance, including which routes are beneficial and where to control costs.

-Managers can track every driver and help with missed delivery.

-Drivers get more efficient routes, respectively smooth navigation, avoidance of movement and as a result less stress, less time consuming work day.

The main subsidiaries of FedEx are:

The Federal Express Corporation (FedEx Express) is the world’s largest operating freight company, offering deliveries to more than 220 countries and regions connecting markets that account for more than 99% of the world’s gross domestic product.

TNT Express BV ("TNT Express") - courier services.

FedEx Ground Package System, Inc. ("FedEx Ground") is a leading North American logistics operator specializing in the delivery of small shipments.

FedEx Freight Corporation ("FedEx Freight") is an American LTL (Less Truck Load) transportation service provider.

FedEx Corporate Services, Inc. ("FedEx Services") - performs support functions that support the company's transport segments: sales, marketing, information technology, communications, customer service, technical support, billing and collection 'business services, back office functions.

Through its specialized divisions, FedEx Logistics provides solutions for customs intermediation and global freight and air freight forwarding services, vehicle repair and maintenance, parts logistics and e-commerce technologies.

FedEx has a unique “team competition, independent action, joint management” business strategy, meaning that all of the above companies operate independently on equal terms, but represent a single brand and are managed from a single center. The two main segments, FedEx Ground and FedEx Express, account for 90% of the company’s consolidated revenue.

FedEx production facilities are characterized by a diverse fleet of vehicles and extensive infrastructure: the world's largest air cargo fleet, vehicles, cargo sorting and transportation facilities, office buildings, warehouses for storage, service centers, data centers and others.

The company provides logistics services in the country and abroad - in more than 220 countries. Significant acquisitions by TNT Express (2016) and FC Express Ltd (2019) in FedEx’s history have significantly expanded its global presence and created additional opportunities in key international markets in Europe, the Middle East and Asia. Data on the structure of FedEx revenues by geographical regions: 68% - services in the US, 32% - logistics in international markets.

The company competes in the national market: United Parcel Service, Inc., passenger airlines offering express services, regional delivery companies, airlines and the U.S. Postal Service. International competitors include DHL (Germany), United Parcel Service, Inc. (USA), DPDgroup (France), GLS (Netherlands-UK) and others. Competitive advantages of FedEx operator:

-One of the most well-known and prestigious brands in the world (included in the Forbes 2019 list of "Most Valuable Brands in the World").

-A symbol of excellent service, reliability and speed.

-The largest global transport network.

- It is a leader in the field of transport in terms of the size of the cargo fleet, the list of logistics services provided.

Leadership in technology innovation (the website allows you to see all available operators and their prices in one place, book services, make payments; FedEx mobile app for Android and Apple tracks parcels, fast tariffs and delivery times to estimate. Find the nearest locations of FedEx; the FedEx Cross Border e-commerce tool provides technological solutions such as calculating international cross-border capabilities and duties, tracking packages, calculating international delivery costs, and currency conversion). Throughout 2018. FedEx has joined the Blockchain in the transport alliance.

A wide range of additional services and services (international trade consulting, sophisticated international express services and delayed cargo services, money back guarantee, real-time tracking, customs clearance; services, etc.).

FedEx shares are listed on the NYSE.

Capital structure (largest institutional owners):

-7.57% - Vanguard Group, Inc.

-7.49% - Dodge & Cox Inc.

-5.78% - Primecap Management Company.

-5.67% - Blackrock Inc.

-3.86% - State Street Corporation.

-1.35% - Canadian Pension Plan Investment Board.

-1.16% - Bill and Melinda Gates Foundation Trust.

-1.12% - Southeastern Asset Management Inc.

-1.11% - Northern Trust Corporation.

-1.11% - Geode Capital Management, MChJ.

-63.78% - others.