ProcurementAlert.com » Looks like DHL is packing it in early — what now?

Looks like DHL is packing it in early — what now?

December 8, 2008 by Charlie Walker
Posted in: In this week's e-Newsletter, Latest News & Views, Procurement costs, Procurement trends, Purchasing decisions, Supply chain efficiency

Warning: Even though it doesn’t officially drop the window on domestic services until the end of January, 2009, DHL has already begun packing it in.

Parcel shippers already need to be cautious if they’re still using DHL, industry insiders point out.

There are already service issues — including no published service guarantee.

Other problems include:

  • no more drop-offs at Walgreen’s and Office Max locations
  • vanishing yellow drop boxes
  • reports that customers are unable to schedule call-in pick-ups after Dec. 10, and
  • that layoffs have already begun.

Industry pros offer two nuggets of advice:

  • One, if your company holds any DHL Ship-Ready pre-purchased products, use them as soon as possible, and
  • Two, don’t wait to start making plans for life after DHL.

Your options include FedEx, UPS and even the USPS.

Make your portfolio as attractive as possible. For instance, carriers prefer commercial deliveries. Highlight those during the bidding process.

They know you need their business. But it’s your advantage there’s three carriers to choose from.

Keep in mind, though: UPS has quietly scaled back service to more than 1,000 zip codes in the past month. Bring that up during negotiations, to see how much it could impact your deal.

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