DHL,Fedex,AnfUSP:ShiftingFortunesInTheGlobal

LogisticsServicesIndustry

1. Industryoverview

Logisticservicesinvolveacomplexwebofactivitiesdesignedtoensure

theefficientmovementof:
o +rawmaterials
o +intermediateinputs
o +finishedgoods
betweensuppliers,manufacturers,andconsumers.
Logisticserviceprofessionalsmanagethesefactorandproductflowsby
combining supply chain consulting, transportation management, freight
transport,andotherrelatedservices
thegoals:
o +assuringtimelydeliveries
o +reducinginventorycosts
Manycompaniesoutsourcelogisticactivitiestothirdpartylogisticservice
providers (3PLs) (an outsourced provider that manages all or a
significantpartofanorganizationslogisticsrequirementsandperforms
transportation,locatingandsometimesproductconsolidationactivities)

2. DHL,FedEx,andUPS

DHL:

1969
On25September,AdrianDalsey,LarryHillblomandRobertLynn(theD,HandLin
ourcompanyname)incorporateDHL.Thecompanybeginsbyoperatingadoortodoor
expressdeliveryservice,transportingdocumentsonlybetweenSanFrancisco,California
andHonolulu,Hawaii.
1970s
Afteroneyear,DHLishandlingshipmentsfor40clientsandexpandingitsoperations.
DHLbeginstomeetdemandsforaninternationalserviceintheFarEastandPacificRim.
ThePhilippinesbecomesoperationalandtheUSnetworkcontinuestodevelop.
1974
ThisyearDHLhandlesover500,000shipments.
OperationsintheUKcommence,spurredbytheincreasingimportanceofLondonasa
keyfinancialcentre.
DHLcontinuestomoveintoContinentalEurope,openingofficesinAmsterdamand
ParisandbeginsaservicetoSouthKorea.DHListhefirstexpressdeliverycompanyto
openupintheMiddleEastwithofficesinTehran,Iran.
1976
DHLopensinMexicoandScotland.DHLbeginsaservicetoBahrainandSaudiArabia
intheMiddleEast.
1977

DHLbeginstomoveawayfrompuredocumentdeliverybyintroducingtheSmallParcel
Expressservice,whichlaterbecameWorldwideParcelExpress(WPX).
1990
DHLsignsanhistoricGlobalTransportAlliancewithLufthansaCargo,JapanAirlines
andNisshoIwai.
DHLinitiatesEasylynkservicestogetherwithWesternUnion.
1998
DeutschePostAGbecomesashareholderofDHLInternational,aspartofavisionto
alignitsEuropeangroundbasedserviceswithDHL.
DHLConnect,anInternetbaseddesktopshippingsolutionforcustomers,islaunched.
2002
DeutschePost(DPWN)becomesamajorityshareholderinDHLbyincreasingitsstake
to51%.

FedEx:

UPS:

In1907,twoteenageentrepreneursstartedinaSeattlebasementwitha
$100loan,ClaudeRyanandJimCaseyopenedtheAmericanMessenger
Company.
19301975:
UPSstartedtoexpanditsbusinesstooutsideofCalifornia.After45years,
in1975,UPSbecamethefirstpackagedeliverycompanytoserveevery
addressinthe48continentalUnitedStates.
19751990:
1975,UPSwentabroadforthefirsttimewhenitbeganofferingservices
inToronto,Canada.
Present:
Currently,UPSrunsaninternationalpackageanddocumentnetworkin
morethan220countriesandterritories.Withitsworldwideservices,UPS
movesover15millionpackagesthroughitsnetworkeachbusinessday.