Deutsche Post DHL splits up Post - eCommerce – Parcel division and re-jigs management

Deutsche Post DHL today announced a break-up of its Post - eCommerce – Parcel (PeP) division into separate German and international units, with Ken Allen heading the new DHL eCommerce Solutions division and John Pearson taking over as DHL Express CEO.

The new Post & Paket Deutschland division, covering the mail and parcel businesses in Germany, will remain under the interim management of Group CEO Frank Appel. All changes come into effect on January 1, 2019.

Deutsche Post DHL announced at midday that “in order to allow for a dedicated focus on the Post and Parcel business in Germany and to leverage the tremendous growth opportunities in the e-commerce sector”, the Post - eCommerce - Parcel (PeP) division will be refocused on the post and parcel business in Germany under the new name of ‘Post & Paket Deutschland’.

The international parcel and e-commerce businesses – previously DHL Parcel Europe and DHL eCommerce – will be established as a standalone division, DHL eCommerce Solutions, under the leadership of Corporate Board Member Ken Allen.

DP DHL explained that having one operating division fully dedicated to the German post and parcel business “will ensure even more stringent execution of the previously announced PeP turnaround plan”, which includes improved yield management, indirect cost reduction and productivity improvement measures.

At the same time, by creating the DHL eCommerce Solutions division, the Group will be better positioned to leverage opportunities within the booming e-commerce logistics sector in Europe and around the world.

In accompanying management changes, the Supervisory Board of Deutsche Post AG today named Ken Allen (63) as the Board member for DHL eCommerce Solutions and extended his contract to the Corporate Board of Management until 2022. His new board mandate will comprise the Parcel Europe and eCommerce businesses along with his existing responsibility for Customer Solutions & Innovation (CSI), while he will lead the further development of the overall e-commerce strategy for the group.

“Ken Allen has successfully shaped the Express strategy and has led the division on an unparalleled growth trajectory by unlocking its revenue and profit potential. With his relentless focus on the core principles of customer centricity, employee engagement and profitable growth, Ken established truly world-class processes within the Express division, making it the most profitable division of Deutsche Post DHL Group,” said Chairman of the Supervisory Board of Deutsche Post DHL Group, Dr. Nikolaus von Bomhard. “I have no doubt that the DHL eCommerce Solutions division will greatly benefit from Ken’s ability to deliver exceptional performance and value for DHL customers, using his significant experience in building networks and leading people with an inspirational style.”

In parallel, John Pearson (55) will take over the Board mandate for DHL Express. He joined DHL Express in 1986, and served the company as CEO in Asia Pacific, EEMEA and Europe, as well as leading the global sales, marketing and customer service functions of the DHL Express division as Global Commercial Head. 

“We are pleased to have John Pearson join our Corporate Board. He has a proven track record, along with a deep understanding of the Express business. Not only does he have extensive operational and business experience of the Express division but John has been a key member of the leadership team running the Express division along with Ken. I'm confident John’s experience will prove immediately valuable to the Board, and that he will take DHL Express to new and greater heights in the years to come,” said Deutsche Post DHL Group CEO Frank Appel.

* CEP-Research will publish a fuller article with more details later today.