Proving the Business Case for the Internet of Things

DHL spends €100m on European expansion to meet e-commerce needs

Steve Rogerson
August 26, 2015
 
DHL Parcel is expanding European operations with services tailored to e-commerce as it invests more than €100m to extend its reach into in Austria.
 
To better exploit e-commerce’s potential to drive growth in Europe, the German company plans to expand its service portfolio in Europe by establishing its own parcel network in Austria by 2016. DHL claims to be the first service provider to tailor both its infrastructure and its services to the requirements of e-commerce.
 
After the Benelux countries, Poland, the Czech Republic and Slovakia, Austria will be the latest market with e-commerce potential to be tapped by the European parcel division launched last year by Deutsche Post DHL Group.
 
“DHL Parcel is setting the standard for highest quality, unique customer focus and excellent services in Germany’s hotly contested parcel market,” said Jürgen Gerdes, CEO at Deutsche Post DHL Group. “And soon, we will able to offer this to Austria’s economy and consumers as well. As the engine behind e-commerce, we have become a key player in an increasing number of countries. It’s now time to make e-commerce even easier, faster and more secure than ever before for everyone in the Austrian market.”
 
DHL’s plans call for investments in a three-digit million range in infrastructure as well as in setting up recipient services such as parcel shops and Packstations. Additional delivery options are to follow, enabling Austrian consumers to satisfy their needs by making their own choices about how to receive their parcels.
 
Priority will be to ensure that as many parcels as possible are delivered on the first attempt so yellow notes for recipients can be avoided. A further benefit will be a reduction in delivery times from Germany to Austria so the online purchases from Germany that are popular with Austrian consumers will then arrive at their recipients only one day after being shipped.
 
At the same time, DHL will in the long run also be facilitating diverse opportunities for the Austrian economy. During the next two years, the new parcel network is supposed to result in the creation of thousands of new jobs in the country and merchants will have the opportunity to benefit from the growth potential of international e-commerce for greater long-term business success.
 
DHL Parcel has already taken the first step by moving into its Vienna headquarters, where Günter Birnstingl, managing director in Austria, will oversee the network build-out during the coming months.