Facility Location of DHL: Selecting the Leipzig/Halle Site and Building Operations Facilities
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Case Details:
Case Code : OPER099
Case Length : 19 Pages
Period : 2004-2011
Organization : Deutsche Post DHL (DHL)
Pub Date : 2011
Teaching Note :Not Available
Countries : Europe
Industry : Logistics
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“The facility at Leipzig airport, which is the company’s largest, now handles 90 per cent of all European DHL Express shipments, and ten per cent of all shipments”
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- Logistics Manager 2 , in July 2010
“There were […] powerful arguments for the Leipzig/Halle location. The most important of them was its strategically good geographic position in the heart of the new Europe… For DHL, Leipzig/Halle is not only a bridgehead to the East, but also our gateway to the world.”
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- Frank Appel, CEO, DHL, at the opening of the Leipzig/Halle air hub, in 2008
Introduction
In late 2009, Deutsche Post DHL (DHL) received the “Project Excellence Award”, one of the leading project management awards in Wiesbaden/Germany for successfully implementing its “Central Air Hub Leipzig” ahead of schedule and within the estimated budget4. The award was instituted by the German Project Management Association (GPM)5 . DHL faced a lot of challenges while developing the hub, a €300 million investment by the company. The project team had the onerous task of dealing responsibly with natural resources and of convincing the local population to accept the flight operations on the one hand, while remaining focused on the interests of the company on the other.
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Introduction cont...
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