Eric Joiner's Freightdawg.com - The Logistics and Supply Chain Blog!

The Mystery of Larry Hillblom - a DHL Founder

DHL today is a 64 billion dollar logistics company spanning the globe in movement of everything from envelopes to customer chartered jumbo jets.  Now a part of German conglomerate Deutsche Post,  few people know the history of the 3 Americans who founded the company in San Francisco, Ca. in the late 60's.  

A lot of people think DHL stands for something German, but in fact, it represents the names of the three founders.  Dalsey, Hillblom and Lynn.   

Larry Hillblom is probably the most infamous of the 3 amigos for the simple reason that once the company became successful in transportation of international documents, primarily shipping line manifests before the age of electronic media, he became an international playboy.  Hillblom moved to Asia, fathered multiple children and then died a mysterious death in a plane crash.   

The article below, from Fortune Magazine, reviews a new book on Hillbloms life.  I am surprised its not a major motion picture.  60 Minutes did a report on Larry Hillblom and his multiple illegitimate children some time ago.  

DHL today has nothing to do with the historical roots of the three American founders, but the history itself is interesting reading. 

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FORTUNE -- Growing up fatherless on a peach farm in California, Larry Hillblom told friends he wanted to be like Howard Hughes some day. He came closer than anyone could have expected. Hillblom went into business, amassed a huge fortune, acquired an airline, built a secretive empire, sustained hideous injuries in a plane crash, and developed into a full-blown germaphobe eccentric.

For all that, there was an important difference between the two men. Hughes indulged his whims in Hollywood and Las Vegas, becoming an object of public fascination. Hillblom cut his wackadoodle swath across Micronesia, which is why you may not have heard of him.

Hillblom was the "H" in DHL, the international courier service, and is the subject of King Larry, a biography by James D. Scurlock. The author unquestionably has a nose for a good story. In 2006, two years before Lehman Brothers collapsed, he made a jeremiad movie called Maxed Out: Hard Times, Easy Credit and the Era of Predatory Lenders. He published a book by the same name the following year.

With his new book, Scurlock has again hit upon a story that was crying out to be told. Hillblom, it seems, was a business monster -- a man with an unquenchable work ethic and no discernible moral compass. His principal hobby seems to have been deflowering virgins. A billionaire cheapskate, he was passionately devoted to a cause: shielding his money from the IRS. As soon as he had DHL up and running, he moved to Saipan, a U.S. protectorate with disputed (or at least disputable) tax regulations. There, dressing like a surfer and riding around in a DeLorean, he disported himself with breathtaking self-indulgence for 14 years.

via Click Here to read more of the original Fortune article

An Old Dawg Talks about New Tricks. 2011 awaits.

My friend and former colleague Jerry Hempstead spent 32 years in the parcel business.  He "retired"...and I use that term loosely... in 2006.  In the meantime Jerry and his consultancy practice have been busier than most non-retired people I know.   Jerry possesses a passion for people, intellect for our business and street savvy that make him simply fun to be around if you are a freightdawg like me.  

I've been working in this field for 25 years and I learn every time I talk with Jerry.   Below he shares his thoughts for 2011.  This will be a challenging year in rebuilding the global economy.  Logistics players will be challenged across the board, ranging from carriers to 3PL's and forwarders to the integrators.   Nothing is as it was.

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I get a lot of what I would call "negative mail". Items that complain about the decisions being made by politicians. The state of the economy, the housing crisis, the dollar, our taxes and so on. Taken without context, its enough to make one depressed.

Today we are on the verge of entering a brand new year. Most who know me, realize right away that I'm an optimist. Just ask me how I'm doing when you call me... you'll know immediately.  I believe that no matter how bad things are,  I have a daily obligation to determine how I will relate to you. I choose to do so positively.

My life's passion is Logistics.   When I think about it and the future, I get excited.   I've been doing this for years, and I remain motivated about our field of endeavor. While I am retired from the firm I served for many years, I remain active in the industry I love as a consultant, enthusiast and confidant of supply chain professionals worldwide.

I'm a parcel guy first and I remain amazed at our postal system. We in the United States have the greatest postal service on the planet. I have lived overseas and can attest that our service is second to none, when you consider that every citizen has the right to home delivery six days a week. The Postal Service is actually one of the few things our Constitution says the government must provide.

The United States Postal Service employs over 500,000 people. Relative to any other postal service, ours is a bargain. $.44 for one to three day service just about anywhere in the USA is amazing. I think its the most complex logistics provider on the planet when you consider all the classes of mail, the number of pieces they handle and the myriad of sizes and shapes they transport.

As weird as it sounds, the USPS is one of the biggest customers of FedEx and UPS. Conversely two of the largest customers of the USPS are FedEx and UPS. I suspect that FedEx Smartpost gives the USPS more parcels today than any other mailer, and Smartpost has been the fastest growing FedEx service.

Two of the largest logistics players in the parcel world are U.S. companies FedEx and UPS. Take a look at how these two firms performed financially in 2010.  Fedex stock rose by 11% year to date and UPS is up 26%. I think between the two there are over 600,000 people employed globally. We can be proud of both these companies and be thankful they are American flag carriers.

I thought about our road system after seeing a television program on how our infrastructure is crumbling and that we are in crisis. I spend a lot of time "on the road", both here and abroad, and I can share with you that with all its faults our interstate and local road systems are the best there is in the world.

I have been on every continent except Antarctica and I can say that we are blessed to have the network we have today. No other country has invested like we have in our roads, with the possible exception of Germany. We have the most available and largest domestic trucking industry in the world and a workforce that for all its issues generally cares for the customer and about their mission in the transport and delivery process.

The United States has more technology, more ports, more rail track and more modern and sophisticated aviation infrastructure than any other country.  We are blessed.

I have had the opportunity to work for over three decades with a group of people who have passion for their work and for building enterprises that offer services that delight customers. I've witnessed incredible, exciting changes over those decades that have increased the speed, visibility and the consistency of the services being offered. Most of all I have shared my life with a community that has a tremendous work ethic and a wonderful sense of camaraderie that the logistics industry seems to engender.

I have made lifelong friends as a result.

So as we enter 2011 let's focus not on what the press is saying about how bad things are, and let's get to work making a difference each and ever day to make the situation better. Even if its just the pride at the end of the day, that you did your best and for those tasks to which you were assigned that day, you made a difference.

Do these Eight things in 2011.  They will not only improve your business, but your life.

1. Make every encounter with your peers, your customers, your family, your friends a positive one. Brighten up a room when you enter and not when you leave. 


2. Make an effort every day to improve yourself. don't let time get wasted away without content. Use the commute to listen to a book on tape, read a book or article, for goodness sake, what you are thinking is important, write an article. This will make you more valuable to your employer or when you might be seeking new employment or a promotion.


3. Dress like you care about how you look. People make judgements based on first impressions. Sorry but that's just life. Always look like you are enjoying the experience...over time you will.


4. Everyone wants to be assured that they are important, worthwhile and accepted. This includes your family and your colleagues. Take the time to send an email or better yet call or speak face to face and tell them they did a good job, or that you really appreciate something they did.  You will make friends for life.


5. Focus on doing the right things, doing them right and not having to do them over. Do everything as if your job depends on it. Have a sense of urgency and a sense of pride in what you produce. Be thankful you have meaningful work and know there are 400 people out these that would love to have your job (no matter how bad you think your job might be).


6. Get involved. if you are in the freight/logistics business you are remiss if you are not at least attending the local roundtable events hosted by CSCMP. There are other inexpensive and or free organizations that will expand your circle of contacts and if you pay attention will increase your knowledge of the business. Organizations like Toastmasters will help you in may ways to improve who you are and how you communicate and also make you some great friends.


7. Know what's going on with federal and local issues that impact your employer and your continued employment. Then get involved. You can communicate for free with your elected officials. Believe it or not,they keep track of what constituents are saying. You can be on the bus or under the bus. Your choice.


8. You are bright, intelligent, articulate, and motivated if you got this far in the article. Take that power and create a mission for yourself for 2011 and then put it on an index card and post it on your bathroom mirror. Make a decision that 2011 is going to be the best year of your life. List those things that are important to you and to which you will actually devote some time and create one or more things on your bucket list to accomplish in this coming year. My wife has always wanted to go to Poland, the land of her fathers ancestors. Number 1 on our list for 2011 is to get to Eastern Europe. What do you think my odds are of getting that accomplished?

Happy New Year

Jerry

SCDigest.com - Parcel Town Hall Redux

Dammit.  Sometimes I wish I didn't travel quite so much. 

I was in Brazil last week when my good friend and former colleague, Jerry Hempstead conducted an online townhall meeting in conjunction with Supply Chain Digest.com.  The online forum was interactive, involving Q&A with a fairly lively audience. I missed the live presentation, but Dan Gilmore alerted me to it.

The topic of the day was the 2011 rate increases for parcel carriers UPS and FedEx, including detailed analysis of both their rate increases as well as dim factor changes that will impact shippers going forward.

Jerry's analysis and candor are always very valuable for shippers, but to be honest, are also instructive to those on the transportation side.  Hempstead spent over 32 years dumpster diving for airway bills.  He knows his subject matter at a level many integrator sales people and executives do not.   For this reason he is highly respected as both famous and infamous. 

Check out this link from scdigest.com to register for free to see the presentation.  I do not normally recommend sites that require registration, but this one is both safe and well worth it.

http://www.scdigest.com/campaigns/On_Demand_Parcel_Rate_Hike_Town_Hall.htm

DHL expands overnight Express service between Europe and the US | Eye For Transport | News, Analysis & Events

DHL is establishing two new direct links from France and Germany to its main express hub in North America.

The new next-day transatlantic routes from Paris and Frankfurt to Cincinnati are timed to feed directly into DHL's North American overnight Express network, and will enable customers in Germany and France and some neighboring countries to send next-day delivery shipments to the US, Canada and Mexico.

According to John Pearson, CEO for DHL Express Europe, there is continuously high demand for transatlantic express services, with Canada, the US and Mexico remaining very important trade partners for the European markets.

The new direct dedicated flights between Paris and Frankfurt and DHL's Cincinnati hub provides customers with assured overnight delivery capacity to the US.

To meet the high demand for fast-to-market air transport, DHL has enhanced its routes from Europe to North America in the past year by investing in a fleet of new Boeing 767F aircraft and establishing connections from Leipzig and East Midlands to Cincinnati and New York.

DHL expands overnight Express service between Europe and the US | Eye For Transport | News, Analysis & Events

Tis the season to ship parcels! Fala lala la...

Here we go.  Black Friday is over, Cyber Monday is history.  Now the parcel integrators and the US Post Office cover the fulfillment.   Millions of packages ordered on-line are now moving in trucks, planes and railroad cars.    The good news is that the economy, at least for retail appears to be recovering some.  Shipping volume is up substantially over previous years and retail figures are showing the same improvements. 

The bad news is that one of those packages might be my wife's aunts fruit cake. 

Shoppers and gift-givers make this the busiest time of the year for delivery services, and some parcel carriers are experiencing historic demands.

FedEx expects to load up 16 million shipments worldwide on Dec. 13, which would make it the busiest day in the company's history. Atlanta-based United Parcel Service should handle about 24 million shipments Dec. 22, its busiest day -- though not much busier than last year's busiest day. Though somewhat shrunken from last year, the U.S. Postal Service is the behemoth delivery service, handling 12.9 billion packages between Thanksgiving and Christmas Eve, and 2.9 billion pieces of mail.

UPS, USPS and FedEx: Holiday shipping choices  | accessAtlanta

Green Packing Materials

Packing materials used in both freight and express parcel movement are both expensive to produce and eat lots of petro resources.  Not exactly green materials.   

ZDNet has a great video on some new developments in creating biodegradable packaging for ecommerce uses as well as some interesting information on how bio materials are making their way into plastics used in everyday items up to and including automobiles.

Check this link out to the ZDNet site.

DHL BRU Farewell Party a Great Success!

On June 11, 2010,  staff members at DHL's hub in Brussels, Belgium held a farewell party in honor of team members leaving the company as a result of DHL's hub relocation to Leipzig, Germany.   By all reports, the party was a major bash.   The following is a direct report!

The party was a roaring success with over 620 people attending from as far away as Singapore, the USA & all over Europe including many ‘old’ DHLers. The weather Gods smiled and gave us a beautiful evening allowing many party goers to remain ‘al fresco’ for the duration. The free bar was, quite naturally for a DHL function, very popular while the buffet provided some much needed nourishment to sustain all those present through until the early hours.

The entertainment started at 2030 with ‘Methuselah’ taking us back in time with some oldies on the disco followed by a presentation and slide show covering the history of DHL in Brussels, including some ‘interesting’ old photographs. The excellent band, Xzent, gave us 2 hours of great music before the tombola was drawn with some fabulous prizes as donated by generous suppliers & airlines.

After the ‘official’ business was over, DJs Kristof & Macphisto made sure that the venue rocked through until 0500 with the champagne tent providing a small haven of peace for those who needed it.

Unfortunately the planned auction of old DHL framed photographs could not take place due to technical difficulties but the subsequent ‘on line’ auction raised over Euro 900 for the charity ‘Annick for Kenya’.

A great party in the true traditions of DHL White and the photographs can be found at http://s737.photobucket.com/home/bru110610/allalbums

Cheers,

Neale

DHL Brussels Farewell Party - June 11, 2010

For many years, DHL's European hub and headquarters was in Brussels, Belgium. In recent times however, the company has relocated it's hub operations and many jobs to Leipzig, Germany. 

Soon, the DHL team in Belgium will transition to new jobs, and in many cases, new careers with other firms. Nevertheless, one heck of a party is planned to close this chapter in DHL's European life.  See below for details!

THE DHL FAREWELL TO BRUSSELS PARTY

 

IT’S STILL NOT TOO LATE TO REGISTER FOR THE PARTY OF THE YEAR!

 

The date is now confirmed for Friday 11th June 2010 at Melsbroek football ground close to the airport starting at 1900 and going on until the early hours.

 

Many thanks to all of those who have registered and more thanks to those who responded to the brufarewell@gmail.com email address advising whether or not you will be attending this event. Also very many thanks to those who have already transferred payment to the BRU Farewell bank account.

 

Please note that, in order to ensure we register you correctly, in addition to registering on this site, please email brufarewell@gmail.com, confirming whether or not you will be attending and with how many people. If people have responded independently of your group, they will be treated individually.

 

Once you have accepted please transfer €55 per person to the BRU Farewell ING bank account 377-0159018-72 (IBAN: BE38377015901872, BIC Code: BBRUBEBB) before 7th May to guarantee your attendance.

 

Once you have made payment for yourself and others in your group, we will send you a ticket showing your name and the total in your group (if more than just yourself) to present to security on the night of the event.

 

The event will feature 4 hours of free bar (thereafter cash will be accepted), a barbeque, a disco and a live band. For those football fans among you, there will be a screen showing the second match of the World Cup (France v Uruguay) although this will be in one corner and will not intrude on those who want to concentrate on partying!

 

The dress code will be casual but, as an idea, if you have any old DHL logo’d items of clothing still hidden away in the wardrobe, it might be fun to dig them out and come appropriately attired!

For those who have any distance to travel or who simply want to party to the max & not worry about driving home, we have a deal on rooms at the Airport Holiday Inn at Euro 75.00 per single or Euro 85.00 per double including breakfast for those who can face it! The reservation form is downloadable by emailing brufarewell@gmail.com and requesting the document. Shuttles will be arranged to take you from the party back to the hotel. More details on that later.

 

Many thanks and best regards,

 

The Organizing Committee

Dang it. Clinton May be Right.

This blog is about logistics. You will find almost 500 posts here and only one or two that are politically related.  That's on purpose.  I try to stay within the boundaries of my business.

In this case however politics is my business. Former President Bill Clinton gave a speech recently at the University of California, Berkeley,  warning about the power of words and the potential of rhetoric to incite harm.  Specifically Clinton referred to the strong negative discourse today between Tea Party Republican /conservatives and supporters of the current government over a host of issues, with healthcare being at the center.  

In this case, I think Clinton meant to align the Tea Partiers with radicals, which I disagree with, but I think he still has a bigger point worth noting. 

Clinton reminded the audience that in 1995 similarly strong sentiments were running when Timothy McVeigh and accomplices bombed the Federal building in Oklahoma City.  His point was that words have strong meaning and what may be political rhetoric for elective purposes for some, may incite violence from others with a more literal interpretation.  Speech is free, but it is not without cost. 

The key point with which I agree with a president I did not support,... is that the words we say to each other matter.  As Americans, political balance is one of the  reasons our democracy has been successful. I also believe it's the reason our economy has been as successful as it has for almost 235 years.  Weights and balances allow dialog, even difficult dialog, to take place.  Political dialog allows a free market economy to work.

What happens nowadays though, especially amongst we bloggers, is that information and opinions, regardless of viewpoint, are now as free as electrons.  Crazy can travel as freely as traditional.  Words incite actions, even unintended actions.  What's dangerous is that what's crazy to you may be both sane and logical to me.  Even more so, cultural collisions now happen instantly thanks to the Internet.

Where that comes back home to my world is that it costs the global economy serious money to scan freight shipments and packages for explosives.  It also costs big money in airline and shipping company practices and policies on security.   Doubtless, much of this is borne on the back of 911 related terrorism, but domestic terrorism is also a factor.   I suspect your office building has different security measures now than it did in 1990.   That's a result of both domestic and international attacks on our country. 

Ultimately, I think this comes down to respect.   Difficult to enact other than through restraint. I'm not talking about being politically correct.  That's only a way of masking true feelings with obtuse words.  What I'm talking about is being educated on the issues and speaking in a way that engages discussion.

I'm about driving costs out of supply chains, which means finding a safer world.  I hate to think the only way to do that is to ramp up the security investment while the rhetoric takes the same arc.

I don't have all the answers here, nor am I sure my opinion is completely coherent.  But I know that the ramped up conflict increases risk, and risk costs money.

Eric

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Elvis has Left the Building: Memphis Chamber goes For Freight

 Most people think of Memphis as the home of Elvis, Blues and Barbecue.  That's all good, but that ain't all there is. Not according to the Memphis Chamber of Commerce anyway. 

Freight is also important in Memphis Tennessee.  How many metropolitan Chambers of Commerce have a Vice President of Logistics? Memphis does.

Jim Covington is the Vice President of Logistics for the Greater Memphis Chamber, and he wants new business.  Air, ocean, intermodal, river traffic...the works.   In this regard, the Greater Memphis Chamber has started a marketing campaign dubbing Memphis as "Americas Aerotropolis".  

America's Aerotropolis

Memphis has the blessing of being centrally located in the United States.  Its location on the Mississippi River also gives it access to the biggest riverine domestic corridor in the country.

Freight transportation companies can obviously read a map.  A well known purple express company has its largest global hub in Memphis, making it the busiest cargo airport in the country.  Additionally several major railroads have intermodal hubs in Memphis.  All this makes for a great place for companies to set up distribution facilities in the region.  Retailers like Williams Sonoma, Dell, and others have facilities nearby in order to leverage the infrastructure.

Nevertheless, Memphis wants more.  See this linked White paper that the Greater Memphis Chamber has put out on the benefits of the city and surrounding areas.   The local TV stations are in line with the effort. Check out this news story that includes some video as well. 

At the end of the day, the Chamber of Commerce in Memphis wants jobs.   Whether employment comes from additional transportation company investment, warehousing or retailer investment, the community wants to grow and is leveraging its best assets to make that happen.

Eric

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