When can we expect the situation at DHL to improve?

Enton 🦆, the insider, has exciting insights into the current situation at $DHL (-1,29 %) and explains why there are repeated complaints about delayed letters and parcels.

What causes the problems?

1. increasing shipment volumes

The volume of parcels and letters is growing from year to year, especially since the pandemic, during which online retail has experienced a strong upswing.

2. employee policy

DHL has been very selective in its choice of staff for years. Some employees are taken on, others do not receive a contract extension.

3. fixed-term contracts and staff shortages

Employees are often hired for a maximum of two years on fixed-term contracts. They are often only informed on the last working day whether their contract will be extended or not. This not only leads to uncertainty, but also to a shortage of long-term staff, which makes work considerably more difficult for the remaining employees and discourages potential new recruits.

4. faulty AI systems

DHL uses an AI system to plan delivery routes, but it works incorrectly. Roads are sorted incorrectly, forcing delivery drivers to take inefficient routes - even on major highways. In addition, the system does not take into account the time required for delivery in high-rise buildings or other important details, which further increases the work pressure.

Other challenges

Overloaded logistics

The logistics centers often can't keep up. Containers with parcels are delivered to the depots incorrectly, especially when external rental companies are involved.

Damaged parcels

Damage usually occurs in the sorting centers, where heavy parcels are often stacked on top of lighter ones. The delivery staff are then faced with the choice of delivering the damaged parcel or sending it straight back.

Conclusion

Although DHL is considered the world's largest logistics company, there are significant problems in the organization that affect employees and customers alike. This is particularly evident in the combination of staff shortages, inefficient systems and an ever-increasing workload.

However, it should be commended that there is an impressive team spirit in many depots. Particularly in stressful times when the workload is high - for example due to sickness absence, vacations or employees approaching retirement - temporary staff and other depots often step in to help keep operations running.

Despite DHL's rigid company policy, the teams work hard together and overcome the challenges together. This commitment shows that the employees form the backbone of the organization and keep the business running, even when conditions are not always optimal.