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entities, the two operations were allowed to develop separately
in a manner that best suited local expansion and success.
Although DHL and DHLI generally operated separately, certain
physical facilities were operated for their joint benefit, and,
occasionally, the companies used networkwide compensation
incentive plans for their executives. At executive levels, there
was commonality and “secunding” (sharing) of employees by and
between DHL and DHLI. At the shareholder levels, there was
common control of DHL and DHLI.
The companies making up the DHL worldwide network cooperated
through the Network Steering Committee (NSC), composed of DHL
shareholders, senior management, and representatives of the three
principal corporations, DHL, DHLI, and Middlestown, N.V. The
NSC’s purposes were to establish network policies and strategies,
address each company’s network rights and obligations, and
present a uniform organizational image to DHL customers
worldwide.
One of the things that led to the success of the DHL network
was the use of a flat-rate pricing structure, where the customer
was charged a monthly rate for all shipments. Under this
approach, profit was sought on the consolidation or volume
strategy. DHL also developed color-coded pouches with
distinctive markings that were known to customers and made
package handling easier and more efficient.
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Last modified: May 25, 2011