Jun 24, 2008

Deteriorating Health in Logistics (DHL) and its histrionics

Almost 6000 people signed petitions against DHL's move to restructure its U.(P).S operations.

There were the headlines sometime in mid-May screaming about the biggest logistically interesting news in the United States yet. The DHLDHL deal with the world's largest package delivery company UPS hogged the headlines. It amused me to see the reactions that it had generated - some terrified, some intrigued and yet some amazed but overall agreeing to the fact that the merger was good for both the companies and also that it was mainly because of DHL's miserable performance in the United States.

And I was thinking along the same lines too. I was thinking about how it might actually benefit DHL in the longer run. Another thing I was thinking about was about how intriguing the entire business landscape of today is. Companies are competitors and collaborators at the same time. It is very interesting as to how the landscape of business has changed drastically even though the basic principle is still the same. Look just a little way ahead and you will notice Yahoo! and Google striking deals in areas where both of them are omnipresent just as several other companies in the world are doing.

The funny thing about logistics related companies however, is that there are just too many physical factors involved that might affect a business. The rules are the same for everybody and even though the metrics might have changed. This is what makes me wonder what precise value addition DHL might gain apart from the bad publicity. Not that they are not having enough of it already.

Gary Huffenberger of wnewsj has written about how more than 6000 people have signed petitions that oppose corporate moves which might hamper the well being of numerous people who work at the DHL Air Park in Wilmington. While the company doesn't seem to have any other alternative to go with as of now, this just might turn into a classic case of "big fish puts a brotherly hand over but still eats small fish" at least considering operations in the US. I wonder what this will amount to in terms of the lost brand value for DHL in the US.

Jun 24, 2008

Deteriorating Health in Logistics (DHL) and its histrionics

Almost 6000 people signed petitions against DHL's move to restructure its U.(P).S operations.

There were the headlines sometime in mid-May screaming about the biggest logistically interesting news in the United States yet. The DHLDHL deal with the world's largest package delivery company UPS hogged the headlines. It amused me to see the reactions that it had generated - some terrified, some intrigued and yet some amazed but overall agreeing to the fact that the merger was good for both the companies and also that it was mainly because of DHL's miserable performance in the United States.

And I was thinking along the same lines too. I was thinking about how it might actually benefit DHL in the longer run. Another thing I was thinking about was about how intriguing the entire business landscape of today is. Companies are competitors and collaborators at the same time. It is very interesting as to how the landscape of business has changed drastically even though the basic principle is still the same. Look just a little way ahead and you will notice Yahoo! and Google striking deals in areas where both of them are omnipresent just as several other companies in the world are doing.

The funny thing about logistics related companies however, is that there are just too many physical factors involved that might affect a business. The rules are the same for everybody and even though the metrics might have changed. This is what makes me wonder what precise value addition DHL might gain apart from the bad publicity. Not that they are not having enough of it already.

Gary Huffenberger of wnewsj has written about how more than 6000 people have signed petitions that oppose corporate moves which might hamper the well being of numerous people who work at the DHL Air Park in Wilmington. While the company doesn't seem to have any other alternative to go with as of now, this just might turn into a classic case of "big fish puts a brotherly hand over but still eats small fish" at least considering operations in the US. I wonder what this will amount to in terms of the lost brand value for DHL in the US.