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Fact remain that the US domestic operation is costing DHL roughly a billion dollar every year. This has been a problem for years, and apparently one that DHL has been unable to overcome. In that situation there are really only 2 options - shut the loss-making parts down or continue to loose vast amounts of cash.
We still need to service the US, but for international clients only. Please keep in mind that, EBITA wise, the US intl. operation is not a major earner for DHL. The reason we have to continue serving the US is because our intl. customers demands that we do so.
I wasn't in the board room when the decision to buy ABX was made, but I think the idea was to give DHL more presence in the US market. At the time, DHL could get something from NYC to the hinterlands of Asia, but not from Montezuma, Iowa to London. The purchase of ABX was supposed to fix that, and might have, had DHL been willing to make the financial committment to building a reputation for service in this country. Instead, they tried to do it "on the cheap" and it hasn't worked out for them. Anybody working in flt ops has seen numerous examples of it on the line, but unfortunately, that's just the tip of the iceberg. Poor management abounds throughout DHL and it's affiliated companies.We've been bleeding Dollars by the billions over the years in the US market. The purchase of ABX was supposed to turn the tide, but sadly no substantial improvment was achieved.
I know a guy who said the same thing about Betamax.ABX had a delivery system in the US that worked. Just because it wasn't the way Astar/DHL was doing things doesn't mean it was wrong. If it ain't broke, don't fix it!
I know a guy who said the same thing about Betamax.