DPWN John Mullen on DHL problems, globalization

[hvydriver]

Business Week video:

http://www.businessweek.com/managing/content/jun2008/ca20080611_101915.htm?campaign_id=rss_daily

 

[abxdx]

That guy is no better than a shady used car salesman. I truly think he has no idea what he is talking about. Unbelievable!

 

[hvydriver]

I agree dx. But he may be pointing toward the "code share" idea correctly. If this goes through, who knows where the merry-go-round will stop? Boards don't care about what color the plane is. They are only interested in maximizing shareholder value. That, and their bonuses, of course.

 

[AV8OR]

I put it on the comment board over there....

When is one of these reporters gonna actually challenge this Mullen concept of code-sharing??? DHL's apparent idea of "code-sharing" in the pax industry would look like this....Delta Airlines ads, Ticket Counters, Website and Gate Agents.....but, and here's "innovative" thing, NO PLANES and NO AIRLINE! You simply take your "Delta Airlines" ticket to the "Delta Airlines" gate and load onto a Northwest flight! You can call yourself an airline if you want to I guess, but in reality that's called a "travel agency"!!

But...Mullen just floats out there the words "code-share" with a European accent and the press goes...."Ahhhh BRILLIANT!"

 

[abxdx]

I agree dx. But he may be pointing toward the "code share" idea correctly. If this goes through, who knows where the merry-go-round will stop? Boards don't care about what color the plane is. They are only interested in maximizing shareholder value. That, and their bonuses, of course.

There is a reason they will be the first to try it on the cargo side. BECAUSE IT IS A STUPID IDEA! This moron will fail miserably and so will DHL. I give them five years before UPS takes over DHL part of DPWN.

How can you equate passenger airline code-sharing to the cargo side. UPS will not bump thier freight to deliver DHL's. What are they going to tell those customers that they have that are now going to have to wait several more days to recieve thier package because DHL must wait on UPS and the USPS to deliver the package. Why put up with those headaches when you can have it next day via FDX or UPS.

All these analysts say that the end customer does not care how the package gets thier. That is true, so it will be very easy for that UPS salesman to go into a company and tell them how they can carry thier package from origin to destination with no outsourced help. All they have to do is explain to that customer all the ways that DHL can lose or delay thier package being delivered, and how many different outsourced entities will have thier hands on it. All they have to do is equate it to any of the many things that are outsourced in this country and remind these shippers how frustrating it is to talk to someone who has no control over how and when the package will be delivered. uke:

 

[shooter]

That is paid for "news" coverage no different than Billy Mays or any other infomercial out there. They have been getting slammed with customers leaving (so I hear) and they are reacting to their "great plan".

So rather than admit they are arrogant idiots that screwed the whole operation, they try to buy coverage to say; "Hey! Look at us! We are doing a great thing". When in reality, they are reacting to the customers concerns and are leaving the US market without saying so.

I hate to say it, but we all have seen it and talked about it. But when ABX said something about the loads falling we just got flack. Rather than DHL fixing why the Airborne customers were leaving, the arrogance refused to get their blinders off.

So, whats next for ABX and Astar? Screw DHL.

 

[AV8OR]

That is paid for "news" coverage no different than Billy Mays or any other infomercial out there. They have been getting slammed with customers leaving (so I hear) and they are reacting to their "great plan".

So rather than admit they are arrogant idiots that screwed the whole operation, they try to buy coverage to say; "Hey! Look at us! We are doing a great thing".


When in reality, they are reacting to the customers concerns and are leaving the US market without saying so.

Bingo!!!


I hate to say it, but we all have seen it and talked about it. But when ABX said something about the loads falling we just got flack. Rather than DHL fixing why the Airborne customers were leaving, the arrogance refused to get their blinders off.

So, whats next for ABX and Astar? Screw DHL.

Who knows??

 

[ABXbooger]

why don't you guys just see this for what it really is...DHL leaving the US market. They are going to do this thing with UPS and then eventually fade into the night...

 

[hvydriver]

why don't you guys just see this for what it really is...DHL leaving the US market. They are going to do this thing with UPS and then eventually fade into the night...

In the US, I agree booger. The rest of the world? Not likely.

 

[abxdx]

why don't you guys just see this for what it really is...DHL leaving the US market. They are going to do this thing with UPS and then eventually fade into the night...

You are correct sir! Don't forget to get your frank and patty tonight!

 

[ABXbooger]

In the US, I agree booger. The rest of the world? Not likely.

Why not? UPS and Fedex have been growing in their international product and very little in their domestic. DHL has not had to compete, that alone is the reason they are what they are. They found out the hard way that they can't compete against Fedex and UPS. What makes you think they will be able to compete against them in the international arena? DHL is done, like communism, once the people find out there is a better way, it doesn't take long.

 

[shooter]

DHL is done, like communism, once the people find out there is a better way, it doesn't take long.

Or maybe like the National Socialist German Workers Party?

 

[rotor&wing]

Why not? UPS and Fedex have been growing in their international product and very little in their domestic. DHL has not had to compete, that alone is the reason they are what they are. They found out the hard way that they can't compete against Fedex and UPS. What makes you think they will be able to compete against them in the international arena? DHL is done, like communism, once the people find out there is a better way, it doesn't take long.

This is where you don't understand DHL International.
When DHL started out in the days under Hillbloom they went to all these different countries and set up shop, and while doing so gave the locals a piece of the action. That's why you have DHL Nigeria, DHL South Africa, etc, etc. That's also the reason UPS and FedEx have been slow in developing their international operations (relative to DHL). When FedEx and UPS go into a country, it's their own shop (with a few exceptions). Remember back around 1990 when FedEx set up their Belgium hub? They failed miserably and DHL bought the sort from them.

It's very difficult to bring a Brown or Purple product into a country when the locals ask "Where's my piece?".

This is also the reason DHL products move so rapidly overseas. It's all in who you have in your pocket and payoff. DHL has 30+ years of experience in that department.

Also, this is why DHL failed in the US. Their international model doesn't work here.

For the record, I'm no fan of DHL and their practices, I've just been around long enough to understand their thinking. This latest fiasco is not DHL, but rather the idiot Germans that bought them.

 

[shooter]

I did not know that either R&W. Do the foreign companies/countries still own their share of DHL even after the Germans bought DHL?

 

[rotor&wing]

I did not know that either R&W. Do the foreign companies/countries still own their share of DHL even after the Germans bought DHL?

It's hard to keep up with. Basically what the Germans bought, in lack of better terms was a franchise. It would take a scholar to assemble all the pieces of DHL Worldwide. Just ask Hvydriver who did alot of research for the union pertaining to who actually owned DHL Airways, Inc.

 

[shooter]

It's hard to keep up with. Basically what the Germans bought, in lack of better terms was a franchise. It would take a scholar to assemble all the pieces of DHL Worldwide. Just ask Hvydriver who did alot of research for the union pertaining to who actually owned DHL Airways, Inc.

So, in your opinion as a long time DHL employee, has DPWN been running DHL like DHL was run, like they ran their monopoly postal product or something in between? I only ask because they bought a turn-key operation (shout out to the one who uses this term daily....you know who you are ) in Airborne and screwed all the customers away. Just wondering if that arrogance is from which product or just from Mullen himself.

EDIT: Got to go pick my boy up...Thanks for the info and I'll get back to this discussion later.

 

[rotor&wing]

So, in your opinion as a long time DHL employee, has DPWN been running DHL like DHL was run, like they ran their monopoly postal product or something in between? I only ask because they bought a turn-key operation (shout out to the one who uses this term daily....you know who you are ) in Airborne and screwed all the customers away. Just wondering if that arrogance is from which product or just from Mullen himself.

EDIT: Got to go pick my boy up...Thanks for the info and I'll get back to this discussion later.

Before the Germans bought DHL it was a good company, a bit quirky but a good company. Their focus was on international freight and "low volume/high yield" customers. They have always made money on the international market and in the US made money, just nothing earth shattering. They never really wanted to compete with Brown and Purple in the US, but focused using a term we always hated ,"niche market".

DPWN has hosed this operation big time.