Dhl Leipzig
Introduction:
Deutsche Post DHL is international logistic company which serves destinations in more than 220 countries and territories around the world. In 2005, Deutsche Post DHL decided to build a new hub in Leipzig which invests Euro 300. This is an appraisal to analysis the reason of moving Hub from Brussels to Leipzig Germany and reason for expansion.
External Factor:
As globalization trend of Multi-National Company, the trend has been toward companies having a single European distribution center. Thus, the demanding of logistic transportation to Europe Countries are rapidly growth really fast. However, DHL Brussels Hub could not expand further more to support such rapid growth volume of shipment. To remind the leader position, DHL needed additional starting and landing capacity in Central Europe.
Nowadays, rising transportation and labor costs in the manufacturing centers in the coastal regions of China also have manufacturers eying Eastern Europe and pulling manufacturing back to Europe from China and India because container costs and fuel costs favoring local production. The trend is evident with a number of companies who are now setting up factories in Eastern Europe to move at least part of their manufacturing back.
Example: Wal-Mart buys most of its plastic products from China. Those products are made with oil, and manufacturers are experiencing huge increases in material costs. They also have increased transportation costs. Those companies are having huge difficulties and it will be interesting to see where the new balance will be found. Thus, logistics providers could benefit greatly if Europe would adopt a central air traffic control system rather than continuing the current practice of each country operating it own system.
The reason why DHL make the decision to invest so heavily in Leipzig and how can DHL become world-class logistic company to expand Europe boundaries market of Leipzig as the below factors:
Absolute
Deutsche Post DHL is international logistic company which serves destinations in more than 220 countries and territories around the world. In 2005, Deutsche Post DHL decided to build a new hub in Leipzig which invests Euro 300. This is an appraisal to analysis the reason of moving Hub from Brussels to Leipzig Germany and reason for expansion.
External Factor:
As globalization trend of Multi-National Company, the trend has been toward companies having a single European distribution center. Thus, the demanding of logistic transportation to Europe Countries are rapidly growth really fast. However, DHL Brussels Hub could not expand further more to support such rapid growth volume of shipment. To remind the leader position, DHL needed additional starting and landing capacity in Central Europe.
Nowadays, rising transportation and labor costs in the manufacturing centers in the coastal regions of China also have manufacturers eying Eastern Europe and pulling manufacturing back to Europe from China and India because container costs and fuel costs favoring local production. The trend is evident with a number of companies who are now setting up factories in Eastern Europe to move at least part of their manufacturing back.
Example: Wal-Mart buys most of its plastic products from China. Those products are made with oil, and manufacturers are experiencing huge increases in material costs. They also have increased transportation costs. Those companies are having huge difficulties and it will be interesting to see where the new balance will be found. Thus, logistics providers could benefit greatly if Europe would adopt a central air traffic control system rather than continuing the current practice of each country operating it own system.
The reason why DHL make the decision to invest so heavily in Leipzig and how can DHL become world-class logistic company to expand Europe boundaries market of Leipzig as the below factors:
Absolute