Deutsche Post DHL splits e-commerce divisions

Standalone business “will be better positioned to leverage opportunities within the booming e-commerce logistics sector.”
   Deutsche Post DHL Group announced Monday that it is separating its Post – eCommerce – Parcel (PeP) business into German and international divisions, effective Jan. 1.
   The German division will be renamed Post & Paket Deutschland and 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 will ensure even more stringent execution of the previously announced PeP turnaround plan,” the company said in its announcement Monday. “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 will be better positioned to leverage opportunities within the booming e-commerce logistics sector in Europe and around the world.”
   The supervisory board of Deutsche Post AG on Monday named Allen as the board member for DHL eCommerce Solutions and extended his contract with the corporate board of management until 2022. His responsibilities will include the Parcel Europe and e-commerce businesses currently within the PeP division. Allen will continue to be responsible for Customer Solutions & Innovation and will lead the further development of e-commerce strategy for the Group.
   Nikolaus von Bomhard, chairman of the supervisory board, said 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.”
   John Pearson will take the board chair for DHL Express. He joined the company in 1986 and has served as CEO in Asia Pacific, EEMEA and Europe and as the global commercial head.
   CEO Appel said Pearson has a “proven track record, along with a deep understanding of the Express business.”
   “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,” Appel said.
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