About Airborne Express (back to 1999)?

Question

Hi, I am doing an assignment about logistics.
The time back to 1999, the questions are:

1) Why doesn't Airborne have retail sites?
2) Why doesn't Airborne use contractors for pickup and delivery?
(if it is lower cost, why wouldn't fedex and ups do so?)

Much Thanks!

Answer 1

Hi! Actually, you might be surprised to learn they DO have retail sites!

A lot of people in the USA who be surprised to know that DHL (a German company) dominates the small package shipping market internationally. They are stronger than FedEx and WAY stronger than UPS overseas.

In 2003, DHL purchased Airborne Express to bolster its presence in the United States.

Anyway, with regards to the retail sites....

Prior to the DHL acquisition, Airborne Express was the weakest of the small package carriers and focused heavily on just high volume business customers. After the acquisition, DHL made an alliance with two industry groups that represent the retail packaging and shipping center industry: American Mail and Parcel Centers (AMPC), and the National Association of Retail Shipping Centers (NARSC).

DHL decided that rather than investing in creating its own chain of retail centers (FedEx had Kinkos and UPS has UPS Stores), it would simply align itself with these independent associations. Member stores get special rates for offering DHL/Airborne shipping and can become DHL Authorized Shipping Centers (DASC). You can find these locations through DHL's web site.

Believe it or not, because DHL decided to work with these existing independent shipping stores, there are now far more DHL shipping locations than either FedEx or even UPS. There has even been some attempts by UPS and FedEx to copy DHL's plan, much to the angst of Kinko's and UPS Store owners.

Long winded answer... but I hope it was helpful. God Bless!

Answer 2

1) In 99 they were fully business oriented, so there was no need for retail sites.

2) Airborne doesn't use contracotrs to control the quality.