Global giant takes care of domestic business too
Since 1973, DHL Express New Zealand has been providing New Zealanders with the benefits of the company’s global network. Servicing more than 220 countries and territories and employing more than 300,000 employees worldwide, DHL’s core strength has been in its fast and efficient international express services.
CourierPost (left) and Contract Logistics – two of the business units that make up DHL Express’s domestic freight offering
DHL’s New Zealand operation is committed to customer value, service excellence and shipment visibility. “We deliver everything from single packages and documents to heavyweight consignments door to door, with expertise in Customs brokerage, air freight, sea freight, warehousing and distribution,” says Gary Edstein, senior vice president, Oceania, DHL Express. “In addition, we provide a fast and economical alternative for international bulk mail.”
However, in 2005, this global company seized an opportunity to build on its domestic service in New Zealand by entering into a 50:50 joint venture with New Zealand Post to form Express Couriers Ltd (ECL). This venture compliment’s DHL’s international offering through the provision of domestic courier and logistics services via four business units, each with their own distinctive competencies:
- Pace! is an urgent courier service specialising in point-to-point local delivery and same-day nationwide services.
- CourierPost has a greater distribution network than any other courier company in New Zealand and offers varied services for time-certain goods and documents.
- Road Star offers an across-town, nationwide and inter-island palletised transport service for larger deliveries.
- Lastly, Contract Logistics is a business warehousing and distribution solution with nationwide reach and ability to manage bulk stock, process orders and deliver product where and when required quickly and accurately.
When any of the above are combined, DHL provides speed, reach and control to its customers.
Strong brands
According to Mr Edstein, ECL’s domestic express business in New Zealand accounts for more than 40 percent market share. “The joint venture brought together two strong brands. By combining DHL’s international network and strength in the global express and logistics markets with ECL’s extensive coverage and knowledge of the New Zealand market, customers receive an even more complete service,” he says.
DHL Express employs more than 300 people in New Zealand, with offices in Auckland, Wellington and Christchurch. DHL operates a national fleet of over 30 vehicles and a dedicated Boeing 727 for the overnight trans-Tasman express freight service. This is supported by the joint-venture fleet of well over 1000 vehicles.
This joint venture has allowed DHL to use their own network in New Zealand as far as they are able before passing a shipment on to ECL to deliver in areas where DHL has limited coverage.
“The true benefit of this joint venture has been in the full integration of technologies between the companies,” says Mr Edstein. “ECL technology can scan the details of the DHL airway bill and pass that data on in real time. It means the joint venture is a true extension of our business because we have integration with ECL couriers on day runs.”
According to Mr Edstein, New Zealand has a very good and reliable domestic courier service. “The size of the country means in most cases a nationwide overnight delivery service is possible. At DHL, we rely on the efficiency of the domestic service to guarantee overnight delivery for shipments inbound or outbound from Australia,” he says. “Compared to other markets in which DHL operates, New Zealand’s domestic courier business is extensive. Most cities in New Zealand are guaranteed an overnight delivery nationwide. For a number of rural areas, this is also the case.”