DHL restructures post and parcel division

posted on 17th September 2018 by Justin Burns
DHL restructures post and parcel division

Deutsche Post DHL Group has restructured and focused its Post – eCommerce – Parcel (PeP) division on German post and parcel business and created a DHL eCommerce Solutions division as it looks to drive growth.

PeP is to be separated into German and international divisions under dedicated board of management leadership. PeP will be renamed as Post & Paket Deutschland, focusing on post and parcel business in Germany.

Ken Allen takes over responsibility as chief executive officer (CEO) and board member for new DHL eCommerce Solutions division and John Pearson is appointed as new board member and CEO for DHL Express.

All changes come into effect on 1 January, 2019.

DHL said the post and parcel business in Germany had been restructured to “leverage the tremendous growth opportunities in the e-commerce sector.”

Post & Paket Deutschland will remain under the interim leadership of Group CEO Frank Appel. The international parcel and e-commerce businesses – previously DHL Parcel Europe and DHL eCommerce – will be established as a standalone division, DHL eCommerce Solutions, under the leadership of corporate board member Ken Allen.

Having one operating division of the Group fully dedicated to the German post and parcel business, DHL said will ensure “even more stringent execution of the previously announced PeP turnaround plan”.

This plan includes improved yield management, indirect cost reduction and productivity improvement measures. At the same time, by creating the DHL eCommerce Solutions division, the Group said it will be better positioned to leverage opportunities within the booming e-commerce logistics sector in Europe and around the world.

Allen has been named as the board member for DHL eCommerce Solutions and extended his contract to the corporate board of management until 2022. His new mandate will include the parcel Europe and e-commerce businesses which are currently within the existing PeP division.

Chairman of the Supervisory Board of Deutsche Post DHL Group, Nikolaus von Bomhard said: “Ken Allen has successfully shaped the Express strategy and has led the division on an unparalleled growth trajectory by unlocking its revenue and profit potential.

“With his relentless focus on the core principles of customer centricity, employee engagement and profitable growth, Ken established truly world-class processes within the Express division, making it the most profitable division of Deutsche Post DHL Group.

“I have no doubt that the DHL eCommerce Solutions division will greatly benefit from Ken’s ability to deliver exceptional performance and value for DHL customers, using his significant experience in building networks and leading people with an inspirational style.”

John Pearson will take over the board mandate for DHL Express. He joined DHL Express in 1986, and served the company as CEO in Asia Pacific, EEMEA and Europe.

Appel said: “He has a proven track record, along with a deep understanding of the Express business. Not only does he have extensive operational and business experience of the Express division but John has been a key member of the leadership team running the Express division along with Ken.

“I’m confident John’s experience will prove immediately valuable to the Board, and that he will take DHL Express to new and greater heights in the years to come.”