Company Overview

DHL got its start in 1969 by providing an innovative solution to a vexing problem. It flew documentation ahead of shipped freight, allowing customs papers to be processed ahead of cargo, thereby cutting weeks off of shipping times. The concept worked and DHL—named for the initials of its founders Dilsey, Hillblom, and Lynn—grew exponentially. A subsidiary of Deutsche Post, Germany’s postal service, DHL provides transportation services to 120,000 destinations in more than 220 countries.

Deutsche Post consolidated its Euro Express, DHL, and Danzas companies under the DHL brand. DHL now handles all of Deutsche Post’s express delivery and logistics operations, which are broken into four business units: DHL Express, DHL Freight, DHL Danzas Air & Ocean, and DHL Solutions. DHL Express is a parcel delivery company servicing more than 120,000 locations worldwide from about 4,700 offices. DHL Freight handles truckload and less-than-truckload shipments throughout Europe by road, rail, and combinations of the two. DHL Danzas provides air and sea freight solutions. DHL Solutions is involved in consulting, information technology, and customized solutions for its customers. DHL acquired Airborne in 2003—paradoxically to augment its U.S. ground operations and better compete with UPS and FedEx. In 2008, the company began introducing shipping kiosks at Walgreen’s locations.

In May 2008, Deutsche Post AG announced the restructuring of its U.S. Express business in which DHL Express U.S. would work with UPS for North American airlift. The restructuring project is expected to remove excess capacity in the division, according to a company press release. It won’t change the company’s product range or service, but could save approximately $1 billion and increase its Earnings Before Interest and Taxes (EBIT) by $800 million in 2010 and approximately $1 billion in 2011. The same month, Ken Allen was selected to replace Hans Hickler as CEO of the express delivery business.