Deutsche Post to split logistics division

Source: Supply Chain Digital

Date :05/03/2008 10:59:58

Deutsche Post AG said Tuesday it will split the division into two operating units with separate executive board members in charge.

Bruce Edwards will head the Supply Chain business, while Hermann Ude will be responsible for Global Forwarding and Freight, the firm said.

Strengthening businesses

The change comes after former logistics head Frank Appel took over as chief executive of the logistics and mail firm after former CEO Klaus Zumwinkel stepped down amid a tax evasion investigation by German prosecutors.

"Logistics is facing increasing organic growth demands in the future," Mr. Appel said in a statement.

"Having a dedicated CEO for each of the logistics businesses on the executive board will further strengthen both businesses.

"At the same time, collaboration will be of prime importance," he added.

The move would have no immediate costs or gains, and there would be no change to the group's reporting structures for the time being, the group added.

Mail division

The company said it would also reintegrate its DHL Global Mail business, previously under Mr. Appel's leadership as well, into the main Mail division.

"As the German domestic business is well on track to meet the liberalisation challenges within the German mail market, it is the appropriate time to combine the two business units again and strengthen the group's cross-border mail opportunities via strong links with domestic mail," Post said.

March 05, 2008