Dhl: Past, Present and Future

Topics: Courier, United Parcel Service, FedEx Pages: 7 (2169 words) Published: February 12, 2012
DHL: Past, Present, and Future

This paper presents a brief history of DHL, its formation in 1969, and its rapid growth in the international courier market. The paper then looks at the history of couriers, express and parcel delivery services, the current status of the company, and future opportunities and challenges for the industry and the company.

DHL: Past, Present, and Future
This paper will explain to the reader the courier, express, and parcel delivery service industry with a brief history of how these industries work. After explaining these industries, this piece will go into the history of the global market leader in logistics, DHL. After concluding the brief history of DHL, the majority of this paper will describe DHL’s Express division, the current status of the industry and company, macroeconomic indicators that relate to DHL, and future opportunities and challenges for the industry and the company.

Courier services have been around for ages. The word itself is taken from the Spanish word correr, which means to run. A courier can be defined as a messenger, especially one on official diplomatic business.

Wikipedia’s Courier article stated the following:
A courier is a person or a company employed to deliver messages, packages and mail. Couriers are distinguished from ordinary mail services by features such as speed, security, tracking, signature, specialization and individualization of services, and committed delivery times, which are optional for most everyday mail services. As a premium service, couriers are usually more expensive than usual mail services, and their use is typically restricted to packages where one or more of these features are considered important enough to warrant the cost. Different courier services operate on all scales, from specific towns or cities, to regional, national and global services. The world’s largest courier companies are DHL, FedEx, TNT N.V., UPS, and Aramex. These offer services worldwide, typically via a hub and spoke model. (“Courier”)

Wikipedia also wrote about the history of couriers in the United States: The courier industry has long been held an important place in the United States commerce and been involved in pivotal moments in the nation’s history such as westward migration and the gold rush. Wells Fargo was founded in 1852 and rapidly became the preeminent package delivery company. The company specialized in shipping gold, packages and newspapers throughout the West, making a Wells Fargo office in every camp and settlement a necessity for commerce and connections to home. Shortly afterward, the Pony Express was established to move packages more quickly than the traditional method, which followed the stagecoach routes. It also illustrated the demand for timely deliveries across the nation, a concept that continued to evolve with the railroads, automobiles and interstate highways and which has emerged into today’s courier industry. (“Courier”)

Now that the history of couriers has been conveyed to the reader, package delivery will need to be explained. Package delivery is conducted by a courier or expresses service, and is the single sole purpose of an Express service.

Wikipedia states the following about package delivery in the United States: Motor freight services arose quickly with the advent of gasoline and diesel powered trucks. United Parcel Service had its origins in this era, initially as a private courier service. The general improvement of the highway system following World War II prompted its expansion into a nationwide service, and other similar services arose. At the same time the contraction or rail passenger service hurt rail-based package shipping; these contractions led to the cancellation of the mail contracts with the railroads, which in turn caused further passenger cuts. Eventually REA was dissolved in bankruptcy in 1975. Air mail was conceived of early, and scheduled service began in 1918....
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