LEGO playing with more and more logistics "bricks" from Deutsche Post
Newly positioned DHL clears the way for integrated solutionsBonn, 07/14/2003, 11:30 AM CEST
LEGO, the world-famous toy manufacturer, has further expanded its logistics partnership with Deutsche Post with a new contract for the delivery of LEGO products to LEGO business customers in Scandinavia. Expected to generate EUR 2 million in additional revenue for Deutsche Post every year, the new business adds an important "building block" to the already extensive range of worldwide logistics services that Deutsche Post provides LEGO. It also shows that the bundling of all of Deutsche Post's express and logistics services under the DHL umbrella brand accommodates the international requirements of major Deutsche Post customers.
LEGO was one of the biggest customers in Deutsche Post's European parcel and distribution network even before signing the new delivery service contract for Scandinavia. All in all, the LEGO European distribution business has generated approximately EUR 1.6 million a year to date for Deutsche Post. LEGO's central European distribution center in Hohenwestedt, in the German state of Schleswig-Holstein, serves as the main hub for B2B distribution in Europe. This facility was also the departure point for the first pallet of LEGO toys dispatched to German stores back in 1956. That transport marked the start of a cooperation that has continually branched out over the years.
Besides making use of Deutsche Post's ground delivery services for parcels, pallets, consolidated shipments and mixed cargo in Europe, LEGO has increasingly turned to DHL's air express services in the years since 1985.
LEGO uses Worldwide Parcel Express to serve its business customers around the world and opts for Same Day Service when delivery within 24 hours is desired. In 2002, DHL's air express services for LEGO generated some EUR 850,000 in revenue.
And this is not the last item on the list of logistics solutions Deutsche Post provides for the fourth largest toy manufacturer in the world. Deutsche Post launched its concept for the worldwide distribution of LEGO advertising material in the fall of 2002. Global Mail Direct is used to send mailings, catalogues and brochures to LEGO customers. In addition, Deutsche Post - via DHL Express - is successfully implementing a Europe-wide B2C solution for the toy maker's LEGO Direct online shop. Even the development of the concept behind this solution was a joint undertaking between DHL and Deutsche Post Euro Express which were still separate organizations at that time.
Deutsche Post's integration strategy for the express and logistics fields translates into sizable advantages for LEGO. Global reach, one-stop shopping in the area of B2B and B2C distribution, the broad range of services on offer and their incorporation into tailor-made solutions are important pluses which provide even bigger advantages with the new DHL. For this reason, DHL Express and LEGO both agree that the integration will further increase the opportunities to jointly expand logistics services for LEGO products.