Comments on: Managing to Fail http://www.thelibertypapers.org/2009/02/03/managing-to-fail/ Life. Liberty. Property. Defending individual freedom and liberty, one post at a time. Wed, 28 Jul 2010 22:26:47 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: R http://www.thelibertypapers.org/2009/02/03/managing-to-fail/#comment-63178 R Thu, 05 Feb 2009 08:27:30 +0000 http://www.thelibertypapers.org/?p=3889#comment-63178 I know alot about DHL as I have worked with them in Europe as a contractor for several years, and as an employee in the 1990s when they were "white DHL" (before DPWN bought them out). I think the writer of this post has some valid points, but some of it tastes bitter. - DHL is huge in rest of world but despite having spent millions (I believe >$3billion since 2003) they still rank 4th after UPS, FedEx and USPS within the Americas. They invested in the Americas to win a share of the business - after four or five years, and millions and millions of dollars and absolutely no sign of improvement its understandable that they reduce their exposure and retreat from the Americas. - Be it millions or billions, the money invested came from outside the US. It came from profits made elsewhere within the DHL world and invested on infrastructure within the US and on salaries and overheads. I'm sorry so many folk have lost their jobs, but when is enough enough? - All their investment into the US fell by (at least) half because of economic downturn. It was good money after bad. Capitalism and competition killed DHL in the Americas... UPS, FedEx and USPS are what worked against DHL, not bad management. Its sad, but its life. - Chris (the writer of the above piece) neglects to mention that DHL started life in America in the late 1960's but from day one it sought success away from the Americas because of the dominent force of FedEx and UPS. It never stood a chance against the competition. Never. But it did try. - The writer neglects to mention DHL created 3 worldwide data centers. The Czech Republic is the HQ for IT, then Malaysia, then Scotsdale Arizona. Before all this, the IT center was based out of London, England and lesser so, Brussels, Belgium. - Chris forgets to mention that millions spent on the IT infrastructure in Scotsdale, Arizona (the third piece in the DHL IT world). Remember, the millions of investment came from profits generated elsewhere in the world and ploughed into the year after year loss making Americas. - The writer mentions the work he participated in. This would be great for AEI, but the majority of AEI systems duplicated existing systems within DHL's existing environment - it would be poor business sense to use AEI's (lesser used) systems when savings can be made using existing DHL infrastructure from Europe. - Centralising the DHL world from within the US would have been daft in terms of return on investment and the writers arguements are based on misplaced national pride. It's a giant in EU, Middle East, Far East and Africa but is a relative unknown in the Americas. Why would a European dominent entity run the world from the US? That does not make good business sense. I have worked as a contractor for many years - Logistics, Telecoms, Pharmaceuticals, Banking and Travel industries all come to mind. I have seen a fair number of folk loose jobs because of mergers or bankruptcy - its hard - I wouldn't wish it on anyone, but business is business and four plus years and millions of dollars hasn't made the slightest positive hint of return on investment - eventually a line had to be drawn to stop the red ink from bleeding. For DHL and its divisions in the Americas, it just had to happen sometime. Sad, but true. I know alot about DHL as I have worked with them in Europe as a contractor for several years, and as an employee in the 1990s when they were “white DHL” (before DPWN bought them out). I think the writer of this post has some valid points, but some of it tastes bitter.

- DHL is huge in rest of world but despite having spent millions (I believe >$3billion since 2003) they still rank 4th after UPS, FedEx and USPS within the Americas. They invested in the Americas to win a share of the business – after four or five years, and millions and millions of dollars and absolutely no sign of improvement its understandable that they reduce their exposure and retreat from the Americas.

- Be it millions or billions, the money invested came from outside the US. It came from profits made elsewhere within the DHL world and invested on infrastructure within the US and on salaries and overheads. I’m sorry so many folk have lost their jobs, but when is enough enough?

- All their investment into the US fell by (at least) half because of economic downturn. It was good money after bad. Capitalism and competition killed DHL in the Americas… UPS, FedEx and USPS are what worked against DHL, not bad management. Its sad, but its life.

- Chris (the writer of the above piece) neglects to mention that DHL started life in America in the late 1960’s but from day one it sought success away from the Americas because of the dominent force of FedEx and UPS. It never stood a chance against the competition. Never. But it did try.

- The writer neglects to mention DHL created 3 worldwide data centers. The Czech Republic is the HQ for IT, then Malaysia, then Scotsdale Arizona. Before all this, the IT center was based out of London, England and lesser so, Brussels, Belgium.

- Chris forgets to mention that millions spent on the IT infrastructure in Scotsdale, Arizona (the third piece in the DHL IT world). Remember, the millions of investment came from profits generated elsewhere in the world and ploughed into the year after year loss making Americas.

- The writer mentions the work he participated in. This would be great for AEI, but the majority of AEI systems duplicated existing systems within DHL’s existing environment – it would be poor business sense to use AEI’s (lesser used) systems when savings can be made using existing DHL infrastructure from Europe.

- Centralising the DHL world from within the US would have been daft in terms of return on investment and the writers arguements are based on misplaced national pride. It’s a giant in EU, Middle East, Far East and Africa but is a relative unknown in the Americas. Why would a European dominent entity run the world from the US? That does not make good business sense.

I have worked as a contractor for many years – Logistics, Telecoms, Pharmaceuticals, Banking and Travel industries all come to mind. I have seen a fair number of folk loose jobs because of mergers or bankruptcy – its hard – I wouldn’t wish it on anyone, but business is business and four plus years and millions of dollars hasn’t made the slightest positive hint of return on investment – eventually a line had to be drawn to stop the red ink from bleeding. For DHL and its divisions in the Americas, it just had to happen sometime. Sad, but true.

]]> By: Adam http://www.thelibertypapers.org/2009/02/03/managing-to-fail/#comment-63175 Adam Thu, 05 Feb 2009 02:10:53 +0000 http://www.thelibertypapers.org/?p=3889#comment-63175 Hello, I'm a college student currently in Columbus, OH. I lived in Wilmington for about 9 years, and worked at DHL (just doing grunt work) for about a year. I'm very interested in what you've written here. Do you live in the area? Also, are you aware of the "energize clinton county" movement, that is pushing to make the area a "green zone" with state regulated businesses? Basically, it's a nightmare. I'd love to hear your opinion of it! www.energizecc.com Why respond to DHL's false incentives with more? Hello,
I’m a college student currently in Columbus, OH. I lived in Wilmington for about 9 years, and worked at DHL (just doing grunt work) for about a year. I’m very interested in what you’ve written here. Do you live in the area?
Also, are you aware of the “energize clinton county” movement, that is pushing to make the area a “green zone” with state regulated businesses? Basically, it’s a nightmare. I’d love to hear your opinion of it!
http://www.energizecc.com
Why respond to DHL’s false incentives with more?

]]> By: Chris http://www.thelibertypapers.org/2009/02/03/managing-to-fail/#comment-63169 Chris Wed, 04 Feb 2009 20:10:53 +0000 http://www.thelibertypapers.org/?p=3889#comment-63169 Ahrcanum, As far as international shipping goes, I still think DHL is the best. They deliver to more destinations and have a better on time record than anyone. Most significantly, they will not only ship where the other major carriers wont; they will guarantee a delivery date in areas where the other carriers will deliver, but won't give guarantees. The problem is with how they managed U.S. operations. Ahrcanum,

As far as international shipping goes, I still think DHL is the best. They deliver to more destinations and have a better on time record than anyone.

Most significantly, they will not only ship where the other major carriers wont; they will guarantee a delivery date in areas where the other carriers will deliver, but won’t give guarantees.

The problem is with how they managed U.S. operations.

]]> By: ahrcanum http://www.thelibertypapers.org/2009/02/03/managing-to-fail/#comment-63167 ahrcanum Wed, 04 Feb 2009 19:49:11 +0000 http://www.thelibertypapers.org/?p=3889#comment-63167 Louis Glunz Beer Inc., a Lincolnwood distributor, sent over 4,000 bottles of Schlitz beer to troops in Iraq for The Super Bowl. The free suds, along with 2,000 pizzas from Lou Malnati’s, were packed up Friday and flown overseas courtesy of none other than....DHL. Louis Glunz Beer Inc., a Lincolnwood distributor, sent over 4,000 bottles of Schlitz beer to troops in Iraq for The Super Bowl. The free suds, along with 2,000 pizzas from Lou Malnati’s, were packed up Friday and flown overseas courtesy of none other than….DHL.

]]> By: tarran http://www.thelibertypapers.org/2009/02/03/managing-to-fail/#comment-63157 tarran Wed, 04 Feb 2009 11:55:08 +0000 http://www.thelibertypapers.org/?p=3889#comment-63157 This sounds like what my father experienced working at Arthur D Little Inc. They eventually closed the German subsidiary and fired everyone - the management never seemed to understand that they were supposed to turn a profit, not provide job-security. This sounds like what my father experienced working at Arthur D Little Inc. They eventually closed the German subsidiary and fired everyone – the management never seemed to understand that they were supposed to turn a profit, not provide job-security.

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