Deutsche Post World Net has learned from Exel's "strict cash management" since acquiring the British group a year ago. DPWN chief Klaus Zumwinkel told industry analysts that a number of Exel processes have been adopted. Management incentives for the worldwide giant are now focused on "profit and cash generation", as he confirmed that the stage of major acquisitions is now at an end. However, this appears to mean the setting of quality targets, rather than strict cash targets.
Zumwinkel
said DPWN has embarked on something akin to a "Six Sigma programme for a service industry", aimed at the quality of processes worldwide. "In logistics, we have very attractive margins and return on investment and assets." The Express business in the US is the main area of the business holding the group back, he said. The US performance would be "fixed in the next three years". Asked why the group is traded at a 40% discount over rivals, he said that one option will be to buy back shares. An important factor will be the European Court of Justice's decision on the group's bid to regain £1bn paid in a fine.
