Over the years DHL has build business relationships and strategic alliances with a lot organizations the world over. For instance DHL was the first express company to enter a contract with the People’s republic of China in 1986. It also enjoyed successful strategic alliances with Lufthansa, Japan Airlines and Nissho Iwai. In the year 2002 it entered into a joint venture with Cathay Pacific for its express cargo business. DHL increased its strategic business holding in China’s Sinotrans to five percent, thereby becoming Sinotrans’ largest strategic investor. It did so to make its standing firm in China against its competitors UPS and Fedex.
In 2004, DHL entered into a strategic alliance with Data Exchange Corporation(DEX) to enhance existing capabilities in the areas of global integrated forward and reverse logistics. Doing so Customers of both the companies could take advantage of the resources of the two companies. It also helped build up supply chain dominance of DHL along with DEX to provide the end customer a complete outsourcing solution.
DHL also entered a contract with Johnson Controls to become its US express service provider. This contract, signed in 2006 was a three-year contract that brings in multi-million dollars in revenue for the company. “Johnson Controls consolidated all of its domestic air shipping to DHL as its U.S. domestic service provider, as well as rely on DHL for international shipping solutions”(cited www.dhl.com). Last year consolidated its operations in India with Lemuir Group to establish leadership in the logistics. The joint venture in India was named DHL Lemuir Logistics Private Limited. Recently DHL entered a three year, logistics contract with Land Rover and Jaguar. This contract will bring in around 130 euro per annum to the company (cited www.dhl.com). In addition, DHL has also initiated into a joint cargo airline with Lufthansa by the name of Aerologic with a goal to rank among the top five carriers in Europe. It also signed a strategic agreement with Walgreens to double the number of outlets offering DHL Express shipping (cited www.dhl.com).
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