Hermes in the noughties
2000
Expansion of the ParcelShop system put on ice
With the establishment of 6,000 Hermes ParcelShops across Germany, this phase of network expansion is concluded. The company sets up www.technikservice24.de a web-based virtual information and service platform for technical issues. In anticipation of the continued increase in the number of shipments, the Munich area is split and the 65th depot is opened.
2001
primeMail founded (March 1)
primeMail - a joint venture between the Hermes Logistics Group and Swiss Post International – provides both national and international deliveries of letters and catalogues on the liberalised market. Hermes thus enters the letter market. By January, the one millionth parcel is processed through a Hermes ParcelShop. April sees the national launch of mobilen Datenerfassung (MEDEA), a hand-held scanner, used to electronically capture and archive data while on tour. Depots in Bremen and Lübeck also receive certificates for their environmental management systems.
2002
New concept for shipping and transport
The company introduces a hub system with central distribution centres for transhipment and transport. The hub system consolidates several distance sellers into their nearest hub where parcels are sorted and distributed to the individual depots. The four hubs are located at Hamburg, Haldensleben, Hanau and Burgkunstadt. The system is designed to reduce the number of transhipments, concentrate line haul routes, save time, and permit the integration of parcels from new clients.
2003
Hermes Network Distribution set up
By setting up its Hermes Network Distribution the Hermes Logistics Group extends its portfolio to include the full truck load (FTL) segment. The 9,000th Hermes ParcelShop opens in March. The shops serve as acceptance points and/or alternative delivery addresses for parcels and supplement the traditional doorstep delivery and collection. Month for month roughly one million parcels are processed through the ParcelShops. On November 1, Hermes develops the system to enable private parcels to be dropped off and delivered.
2004
Hermes Einrichtungs Service GmbH founded
By founding the Hermes Einrichtungs Service GmbH in Löhne, Hermes formalizes its collaboration with Sänger Speditionsgesellschaft mbH & Co. KG.
May sees the opening of the 10,000th Hermes ParcelShop, supporting a network of alternative delivery addresses across Germany. From June 1, Hermes provides distance sellers with a new premium service, allowing deliveries to be restricted to one of four time bands on any given workday. Customers can choose to have their parcels delivered in any one of the three-hour time bands.
A new pricing model is introduced on November 1 at the Hermes ParcelShops, which now total over 10,000. Instead of four price categories, there are now three, and prices have been reduced. Smaller commercial operators are now entitled to offset VAT.
At the end of the year, Hermes receives a positive rating from the consumer testing foundation Stiftung Warentest. In its review of parcel delivery services, the foundation rated Hermes 'reliable by collections and deliveries' and, with its 'clear pricing system', the 'most favourable provider'. Hermes was ranked first in the overall assessment of quality and price.
2005
Hermes is again certified in line with ISO 14001 environmental standards
In October, Hermes is once again certified in line with ISO 14001. In doing so, the TIP testing procedure was deployed for the third time. The certificate is awarded following an analysis of internal environmental checks. An external auditor judges whether the company has implemented an environmental management system in line with the requirements of ISO 14001. The auditor also checks whether the company has set up an internal organisation to check the degree of implementation based on internal guidelines and the demands of ISO 14001.
TechnikService 24 GmbH & Co. KG is founded on March 1. The new company represents a merger of two companies established for decades: Haustechnik Service GmbH & Co. KG and Hermes Technischer Kundendienst. The new company provides after-sales services such as repairs, call centre solutions and spare part logistics.
From June, two-time F1 world champion Mika Häkkinen endorses the company by wearing the Hermes logo on his racing overalls. He also appears in the company’s print and media advertising. In addition, he acts as a brand ambassador for the company.
In time for Christmas business, Hermes supplies its own shipping cartons at its around 11,000 Hermes ParcelShops. The blue parcels are available in three sizes.
2006
It’s all about parcels
With the new ProfiPaketService launched in February, Hermes provides lower-volume shippers access to its range of services. Small commercial operators, self-employed and power sellers can now offer services such as collections from the client, up to four visits to deliver the parcel or returns handling at the now 12,000 Hermes ParcelShops.
In summer, Hermes begins construction of a new hub distribution centre – the west hub in Hückelhoven. Once completed, 130 employees will find work there. Planned investment for property, building and technology amounts to €35 million.
In July, Hermes introduces a new parcel category for the ProfiPaketService. From September 4, Hermes now ships parcels of up to 25kg to countries in Europe. These are accepted at the 12,000 Hermes ParcelShops. The price includes three visits to deliver the parcels, web-based tracking and tracing as well as liability for contents of up to €500.
2007
Hermes takes commission of the west hub, posts records sales and grows internationally
For the third consecutive year, Hermes increased its revenue, which grew by 11.5% to €1.016 billion, surpassing the €1 billion threshold for the first time. The company held a 37 percent share of the B2C market. In the C2C market, the company delivered 23.6 million parcels. Overall, the 2006 financial year closed with the company shipping 235 million parcels.
At the beginning of July, Hermes launched operations in Austria. With its 1,200 ParcelShops and 700 couriers, the company targeted a market share of 20 percent in the B2C and C2C segments by the end of 2008. This goal was exceeded, due in part to the acquisition of Primondo – the mail-order arm of Arcandor AG – as a client just four months after market launch.
Also in summer 2007, the Hermes board decided on the location of a new central hub in Friedewald, situated on the B4 autobahn. A total of €45 million was invested in infrastructure and technology for the 18,000 square metre building, where operations were expected to start at the beginning of 2009. The new distribution centre will employ 150 new staff and process 20,000 parcels per hour. Following a one-year construction phase, the new hub in Hückelhoven started operations in October. A feature of the hub is that it is directly connected via a conveyor bridge to the distribution centre of TV retailer QVC.
Hermes entered the Italian market in October through a 30 percent holding in the Italian parcel delivery company Swiss Post Porta a Porta. Porta a Porta has a 7% share of the Italian market and operates a B2C network.
Together with its partner, TNT Post, Hermes planned to enter the letter market for private clients and small enterprises from January 1. For this, the 13,500 Hermes ParcelShops were to be deployed as acceptance points for letters. However, following the political decision to establish a minimum wage for letter couriers, both companies discontinued their plans. The project and further investment were stopped with immediate effect.
2008
Hermes remains on course for growth
For the fourth consecutive year, Hermes increased its annual revenue. The company generated revenues of €1.041 billion for the 2007 financial year in Germany, up 9% year on year. The company shipped over a quarter of a million parcels. Following market launches in Austria and Italy, and partnership agreements with sister companies in France and England, Hermes holds a 22% share of the European parcel market, estimated to be worth €1.5 billion.
The network of Hermes ParcelShops in Germany contributed to a reduction in CO₂ emissions. A study shows that the expansion of the now 13,500 acceptance points in the Hermes ParcelShop network reduced car miles and the related carbon-dioxide emissions. Carbon-dioxide emissions per parcel dropped between August 2006 and August 2007. In total, the company reduced carbon-dioxide emissions by 5,700 tonnes. This is equivalent to the emissions resulting from the electricity consumption of 2,300 three-person households.
For the full truck load segment, the Internet portal www.click2transport.de was developed. The service is geared towards retail and production companies as well as forwarders, with sporadic or regular freight volumes to be shipped in national full or partial loads by swap body. Hermes is able to accept orders around the clock throughout Germany, even up to six hours before scheduled departure.
Hermes Einrichtungs Service introduced two new services. From March, www.profigrossstueckservice.de provides a web-based solution for transporting furniture and bulky items nationwide. Consignments up to seven cubic metres are collected at the shipper’s premises and delivered to the customer’s home by two-man teams. The service targets online shops, ebay sellers, and furniture retailers with low shipping volumes.
In November, the PrivatGroßstückService was launched. Its features include customized distribution solutions, digital tracking and tracing, and up to three delivery attempts. Large and bulky goods can be transported on behalf of private clients, such as users of online auction platforms like ebay. Clients pay a fixed price for the transport of specified pieces of furniture, electrical and household appliances, regardless of the distance involved.
2009
Hermes Transport Logistics GmbH founded
Hermes Transport Logistics GmbH has been an independent company in the logistics market since May 1. The company has its origins in the Transport Logistics division of Hermes Logistik Gruppe and Otto International Logistics (OIL). The former Transport Logistics division specialized in national and European full truck load transport. After establishing the transport network for the parcels business with a focus on hub and depot traffic, the business model was expanded to include customers in trade and industry.
The former company OIL managed procurement transport in the air and sea freight business. The experience gained in co-ordinating procurement logistics for the Otto Group is the basis for Hermes Transport Logistics’ worldwide activities today.
Set up jointly, Hermes Transport Logistics today offers national and international customers a portfolio of logistics services. The company has over 3,000 employees. More than 18,000 tonnes of air freight and over 100,000 TEU of sea freight are transported annually, and up to 7,000 swap bodies and trailers are used daily.