MarketDHL Supply Chain
Company Profile

DHL Supply Chain

DHL Supply Chain is a division of Deutsche Post DHL and is affiliated with DHL. Headquartered in Bonn, Deutsche Post has 510,000 employees.

History
1969 – DHL founded by Adrian Dalsey, Larry Hillblom and Robert Lynn in San Francisco. • 1971 – DHL expands its Express network. Expansion into the Far East and Pacific Rim. • 1972 – Services introduced in Japan, Hong Kong, Singapore and Australia. • 1974 – The first UK office is opened in London. Globally, DHL now has 3,052 customers and 314 staff. • 1976–1978 – Expansion in three major regions as DHL launches in the Middle East, Latin America and Africa. • 1977 – The first German DHL office is opened in Frankfurt. • 1979 – DHL extends its services to delivering packages. Only document services had been available until now. • 1983 – DHL is the first air express forwarder to serve Eastern European countries. An international distribution center (hub) is opened in Cincinnati, USA. • 1985 – A hub is opened in Brussels. More than 165,000 shipments are handled each night. • 1986 – DHL enters into a joint venture with the People's Republic of China and becomes the first express company active in China. • 1990 – DHL enters into strategic alliances with Lufthansa, Japan Airlines and Nissho Iwai. • 1991 – DHL becomes the first international express company to restart service to Kuwait after the Gulf War. • 1993 – DHL invests 60 million dollars in a new hub facility in Bahrain. • 1998 – Deutsche Post becomes a shareholder in DHL. • 2002Deutsche Post World Net becomes the major shareholder in DHL from 1 January. By the end of the year, the company owns 100 percent of the DHL shares. ==Headquarters==
Headquarters
DHL Supply Chain is incorporated in Bonn, Germany as a part of Deutsche Post DHL global headquarters. The main building is Post Tower. Located in the former government quarter and built using large quantities of glass, it is impressive because of its modern architecture. The tower is high, long and wide. ==Mergers and acquisitions==
Mergers and acquisitions
The acquisition of the Swiss logistics provider Danzas and the largest American service provider in the field of international airfreight, Air Express International (AEI), by Deutsche Post, happened in 1999. Founded in 1815, the prestigious Danzas group was regarded as one of the world's leading logistics companies. With approximately 29,000 employees at the time of acquisition, Danzas had a strong logistics network on all continents. In July 2011, DHL acquired Tag Worldwide, an international provider of marketing execution and production services. In 2017, DHL sold the combined Williams Lea Tag business to Advent International. In May 2018, DHL Supply Chain strengthened its presence in Latin America by acquiring Colombian logistics company Suppla Group. At the time of the acquisition, Suppla employed over 4,500 employees in 25 cities of Colombia. DHL Supply Chain announced its acquisition of healthcare logistics provider, SDS Rx, in September 2025. ==Regions and sectors==
Regions and sectors
DHL Supply Chain is organized into five regions: North America, South America, APAC (Asia Pacific), EMEA (Europe, Middle East, and Africa), and UK&I (United Kingdom and Ireland). The Exel brand was retained for North America (USA and Canada), with the headquarters for the region in Westerville, Ohio. In 2016, the Exel brand transitioned DHL Supply Chain for the North America region. DHL Supply Chain trades in six focus sectors: AEMCE (Automotive, Engineering, Manufacturing, Chemical and Energy) Consumer, Retail, Technology, Service Logistics, Life Sciences and Healthcare. Consumer and retail Consumer and Retail are two of DHL Supply Chain's largest sectors. Both of these offer major growth potential for the division, since DHL manages the supply chains all the way from the source of supply to the end customer. Services in these sectors range from international inbound logistics and warehouse and transport services, to packaging and other value-added services. Technology In the Technology sector, DHL Supply Chain's portfolio of offerings ranges from inbound-to-manufacturing services and warehouse and transport services to integrated packaging, returns management and technical services. Life sciences and healthcare In 2011, DHL Supply Chain acquired Eurodifarm, a specialist in the controlled-temperature distribution of pharmaceutical and diagnostic products. The purchase was made to strengthen DHL Supply Chain's market leadership in Italy in this sector. In England, DHL Supply Chain operated the NHS Supply Chain for the National Health Service until April 2019. It has a contract for patient transport services in North London and has been criticised for poor response times to patients wanting to book a service and for refusing disabled people permission to bring an escort. The Royal Free London NHS Foundation Trust oversees the call centre. Automotive The automotive industry is one of DHL Supply Chain's global sectors. The company has a strong presence in emerging markets such as China, India and Brazil. Energy The fast-growing Energy sector is another market in which the DHL divisions provide logistics for both the build and run phases of major projects. Public Sector In the UK, DHL Supply Chain first won the Prison Retail Service contract in 2008; in 2022 it was reported that the company had won the contract again and that it would run until at least 2025. The contract involves supplying prisoners with their weekly 'canteen' purchases of toiletries and groceries, as well as employing and training prisoners to work in prison workshops that deliver the service. ==Products==
Products
In the Supply Chain business, DHL Supply Chain provides customers in many industry sectors with logistics services along the entire supply chain – from planning, sourcing, production, storage and delivery to returns logistics and value-added services – in order to ensure logistics flow. DHL Supply Chain offers warehousing, distribution, managed transport and value-added services as well as business process outsourcing, supply chain management and consulting. DHL Supply Chain's goal is to ensure that their customers' products and information reach their markets quickly and efficiently, thus securing them competitive advantages. ==Market position==
Market position
DHL Supply Chain was the global market leader in contract logistics with a market share of 8.3% (2010). In this highly fragmented market, the top ten players account for only about 23% of the overall market, the size of which is estimated to be €147 billion. DHL Supply Chain is the regional market leader in the regions of North America, Europe and Asia Pacific and also has a very strong position in rapidly growing markets such as Brazil, India, China and Mexico. ==Financial results==
Financial results
DHL Supply Chain, as the contract logistics business of Deutsche Post DHL, generated profitable growth in year 2011. Revenues and earnings were well above the previous year's level. The division reported a revenue increase of 1.2 percent to EUR 13.2 billion (2010: EUR 13.1 billion). As a result of portfolio adjustments made during 2011 – such as the divestment of a subsidiary in the United States that was not part of the division's core business – this result only partially reflects the division's operating performance. Adjusted for these consolidation and exchange-rate effects, SUPPLY CHAIN's revenues rose by nearly 6 percent, or more than EUR 700 million, in 2011. This increase was fueled in particular by strong growth in the Asia-Pacific region as well as in the Life Sciences & Healthcare and Automotive sectors. Additional contracts worth EUR 1.3 billion were concluded in 2011, an increase of around EUR 200 million versus the previous year. Combined with additional operating improvements and strict cost management, increased business activity drove up the division's earnings in 2011. At EUR 362 million, the operating earnings were 56.7 percent above the previous year's level of EUR 231 million. == References ==
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