In the parcel sector despite the boom in profits

Business



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Rausch and Gerdes have faithfully served their employers for more than fifteen years and have helped their businesses make rapid progress. Gerdes increased the yellow giant's package volume last year by 7.8%, intoxication brought after the DHL the second largest player of the same German entry door delivery twelve percent increase

an apparent paradox but both fatal. Ironically, the surge in the end-customer parcels market, in which the two market leaders have a good 90% market share, has hurt the sensitive benefits. For example, the Post Office's parcel business will earn nearly a billion euros less this year than expected a few weeks ago. And also on Hermes it says in a recently updated bond prospectus of the parent company Otto: "Decrease in profitability of the Otto group in the service segment during the 2017/18 fiscal year."


As reasons for the surprising drop in the "cost pressure", "entry of new competitors", "unprecedented levels of peaks" and lack of staff.Although Hermes claims to the claim to have made a profit in Germany in 2017: Including one-time charges of 29 million euros wrote the division "Services", in which parcel delivery plays a dominant role, loss of six million of euros (Ebit) 19659004] Current club events

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Capacities are rare

Hermes, as well as the subsidiary of DHL postal parcel, seem to suffer from a syndrome that plagues the parcel market: the growth pain caused by the narrowing of capabilities and l & # 39; The inability of the players to pay the rising costs [Suite]

Kay Schibur, who has been a member of the Otto Group Executive Board since April, wants to change Rausch's departure to the head of the Hermes Europe Holding Supervisory Board, wants to change that with power. "We were the first major groups to announce that price increases over dealers and brands are absolutely necessary," said Lekkerland's long-time top manager Handelsblatt. Hermes has never played the role of "breaker" or "discounter" in the industry at any time.

Recently, Hermes demanded seasonal supplements from its online retail customers as spikes reached the menacing market. In the past, the Christmas business – still under the direction of the noise – Hermes and his customers agreed on regional upper limits for parcel delivery. In the industry, however, this has brought hamburgers more ridicule than recognition. "The customer threatens to order," blamed the boss of a major competitor

The responsibility to inflict pressure on prices in the parcel industry is pushed by competitors. The boss of DHL Gerdes accused Hermes last year in a secret council proposal. From the largest DHL group customer, the American company Amazon, asks the Hamburg Otto subsidiary on average only 2.21 euros – including supplements for returns, parcel storage and priority delivery. This Hamburg was 15% cheaper than you.

The Supervisory Board of Hermes Schibur rejects this. "DHL has a market share of almost 50% in the German parcels market and thus determines prices," he explains. "If the market leader denies price increases, then the market has a problem." The fact that parcel delivery companies are reducing the margin, has justified the Otto Board of Directors with greatly increased staff costs. "The job market has been swept away," he says. Even in rural Thüringen or Mecklenburg, a driver is barely working at minimum wage. In metropolitan areas, the hourly wage is now eleven, in Munich even twelve to fifteen euros.

Christina Dahlhaus, Federal President of the DPVKOM union criticized in the "Welt am Sonntag", currently in the German Post would argue that the deliverymen, unlike other officials, no early retirement offer must be made. A spokesperson did not want to comment on the newspaper's request

The industry itself was indebted for its shortage of staff. Last year, the Federal Association of Package logistics and Express (BIEK) predicted last week the German parcel market, 1 percent to 3.35 billion shipments. And in the current year, it will probably increase by 5.5%. By 2025, it is expected that the volume of the packet will double again. The fight for drivers will be even worse under parcel services.

What this means, Schibur learned from his new employer in his first 100 working days. "70% of Hermes costs go to the staff account," he reports. "Only delivery of the delivery warehouse at the entrance gate, so the last kilometer, resulting in 50% of the expenses."

Up to now, however, hesitated DHL and Hermes, the increased charges pbaded on to the customer – unlike UPS competitors, the preferred on Amazon

Unlike "Big Brown" (UPS), DHL and Hermes depend strongly from the largest Internet store in the world. 17.6 percent of all DHL packets come from the hands of Amazon, recently revealed a secret tip template from Deutsche Post. "In our country, the proportion is similar," explains Kay Schibur.

He calls the Americans "important customers". However, unlike competitors like DHL, Hermes has the advantage of being able to make a third of its turnover with Otto Group companies "fast growing". "It makes us more independent," he says. Only: if Amazon loses as a customer, Hermes would certainly be enslaved to considerable fixed costs

What keeps the industry in suspense: Since October 2015, Amazon has set up its own parcel service in Germany . Even today, Americans serve eight metropolitan areas with their own delivery services. In addition, Amazon has equipped the factory delivery of 300 automatic parcel stations, called "lockers". With them, packages can be significantly cheaper than by elaborate trips to the front door.

With arguments like these, Amazon pushes the price for DHL and Hermes. "In addition, these important customers usually enter into contracts for several years," says Horst Manner-Romberg, logistics consultant in Hamburg. "Short-term price increases can hardly be applied." However, he finds little sympathy for package managers who may be blinded by Amazon's threats. "Americans are already reaching their limits when it comes to buying drivers and vehicles," says Manner-Romberg in his own consulting work

. Price pressures could also come from Bonn. There, the head of post Frank Appel, transitional manager also for the parcels sector, announced a few days ago indirect price increases. He wants to cash in unwarranted discounts if customers like Amazon do not reach the agreed shipping quantities. He also thought of surcharges for increasing fuel or transportation costs. Projects, confirms the boss of the supervisory board of Hermes, Schibur, yet is in the market still nothing to feel.

Alone on the Schützenhilfe of his most powerful competitor he does not want to count anyway. "We are investing in digitization, technology and other parcel stores," says the 49-year-old, "in order to manage growth."

Portable devices offer the delivery driver the fastest route to the Berlin receivers. exposure. Even micro-delivery stations in city centers, from which bicycle couriers begin their visits, should reduce the pressure on costs. "We are also open to cooperation just in the last mile," Schibur told his rivals.

After the expulsion of Gerd Gerd, the mailbox "Parcellock", Hermes with competitors GLS and DPD Schibur hopes that DHL will join the project

Theme: Logistics

In addition , Hermes is investing 500 million euros across Europe in new sites by 2020. The high expenses for the family concern Otto, which is largely financed by bonds. Net financial debt amounted to 2.5 billion euros in 2017, more than 3.3 times earnings before interest, taxes, depreciation and amortization, in part because of 39, other corporate expenses.

Olaf Schabirosky, Noise's successor since June 21, said the Hermes company in Germany is under pressure to get better results as quickly as possible.

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