Hermes in the current decade
2010
Test winner Hermes continues growth and introduces “WE DO!” eco-label
In its financial statement for the 2009/10 business year, Hermes reports strong growth once again for the sixth year in succession. In its core business, the company achieves €840 million in revenue, an increase of 6.6% over the previous year’s figure of €788 million. With a total of 266 million parcels, 4.6% more are shifted than the 254 million in the 2008/09 business year. With this, Hermes once again achieves results surpassing industry forecasts for the courier, express and parcel services (CEP) market.
Hermes has been living up to its climate and environmental protection responsibilities for years now. The company thus supports the development of new propulsion technologies and participates in a pilot project of the car manufacturer Mercedes-Benz, which is now mass producing the Vito E-CELL as the first electrically propelled Vito van. With ten such vehicles within its own company fleet, Hermes is one of the first users in the CEP sector worldwide. With the introduction of its logo “WE DO!”, the company is now making its strong ecological commitment clearly visible to shippers and end customers, a commitment that has already reduced CO2 emissions per parcel by nearly 40%.
As part of its expansion in Germany, Hermes begins construction of a new hub in Langenhagen near Hanover. About €35 million is being invested in this new facility, which will create 150 full-time jobs and allow the handling of up to 60 million parcels per year. Even as ground is broken in Hanover, another building in Hamburg is already complete: the new Hermes II office complex is formally inaugurated after just 13 months of construction. Hermes has invested €18 million in this expansion project, thereby demonstrating its commitment to Hamburg as a place of business.
Hermes receives three major distinctions this year. Firstly, the Stiftung Warentest consumer testing foundation compared ten leading parcel services in terms of shipping and service quality, with Hermes Logistik Gruppe Deutschland (HLGD) emerging as the test winner, scoring an overall grade of “good”. Furthermore, the company also wins the Hanse Globe, an award bestowed by the Logistik-Initiative Hamburg to recognize environmentally friendly logistics. And finally, with the “Certified Customer Satisfaction” quality seal, the TÜV Nord testing agency attests that HLGD customer service operates so well that at the end of every call, the customer can hang up the phone with complete satisfaction. In order to maintain such high customer service levels into the future too, HLGD also introduces a new identification method for parcel recipients. With its “Identservice Flex”, the company offers commercial shippers a comprehensive system for confirming delivery to the doorstep.
2011
Hermes grows further and positions itself as a leading service provider for online retail
Already for the seventh year in a row, the companies operating under the Hermes brand succeed in significantly increasing their revenues. Yields in all four business areas – Sourcing & Product, Transport Logistics, Fulfilment and Distribution – are also developing positively. Total revenue has increased to €1,724 million, about 18% higher than last year’s €1,465 million. Due to excellent business growth, the number of permanent employees increases to 10,238 (previous year: 9,571). With its strategic orientation, the Hermes Group profits from the rapid growth of e-commerce, as the only service provider worldwide to offer its customers comprehensive services all along the retail value chain.
HLGD transports 303.8 million parcels this year, over 14% more than last year. In further developing its German logistical infrastructure to handle increasing volumes, HLGD puts two new sorting centres into operation. The month of May sees the inauguration of the north German hub in Langenhagen near Hanover: this new €35 million facility sorts up to 25,000 parcels per hour. For its high standards in terms of sustainability, this sorting centre also receives an environmental certificate in silver from the German Sustainable Building Council. Then in September, the sixth German hub also begins operation, in the town of Ohrdruf, Thuringia. Around €14 million is invested in this new site, where the transshipment of 15 million parcels can be handled every year, particularly bulky items like furniture. HLGD also continues expanding its network of branch offices: eighteen new locations are commissioned for a total of €120 million.
With its new online presence at www.hermesworld.com, the company now has a single website presenting the complete service range of all the companies operating under the Hermes brand. The goal of all marketing efforts is the unified positioning of the individual companies under the Hermes umbrella brand. Furthermore, the Hermes portfolio now includes the certified, internationally recognized testing institute Hansecontrol GmbH, as well as Hermes NexTec GmbH, a 100% subsidiary of Hermes Fulfilment. Hermes NexTec specializes in the development and operation of web shops.
In November, HLGD enters a new market segment with its “Päckchen” (“small parcel”) service. HLGD thus becomes the only shipping provider to offer its customers such an economical small-parcel class that includes extensive additional services for free: liability for up to €50, four delivery attempts and shipment tracking.
Hermes also sets new standards in the area of “green logistics”. The long-distance transport specialist Hermes Transport Logistics offers shippers an ecological CO2 reporting service, which precisely breaks down the pollutant emissions resulting from transport. Such detailed calculations are unparalleled in the sector at this point in time. Hermes also receives further recognition for its commitment to environmental sustainability, becoming a finalist in the Eco Performance Award competition. In the environmental stronghold of Hamburg, Hermes owns the largest fleet of commercially deployed electric vehicles.
2012
Successful worldwide: Hermes again surpasses previous year’s results
Hermes registers a successful business year for the eighth time in succession by increasing its total revenue by 7% to €1,928 million, compared to €1,800 million in the previous year. Hermes continues participating in the e-commerce boom, with over 452 million transported parcels in Europe and 7.5% growth in parcel quantities. Hermes generates about 70% of its overall parcel volume outside of the Otto Group, its company parent.
A certification process covering all general contractors working with HLGD in parcel delivery is conducted for the first time, in cooperation with the SGS-TÜV Saar GmbH testing company. Goals include maintaining overall performance quality and upholding specified conditions of employment.
Another new development is the establishment of a supervisory board to monitor Hermes: due to business growth, it was decided in agreement with the Otto Group to install this monitoring body. One designated member of the new supervisory board is the TV producer Sabine Christiansen, who also does socially engaged work for UNICEF as the founder and chair of the Sabine Christiansen Children’s Foundation.
Further internationalization is also pushing ahead. Hermes combines its energies with the logistics provider DPD in a joint venture to take on Russia’s rapidly growing B2C market. This cooperative effort is focused on building in Russia a high-performance network of ParcelShops under the Hermes-DPD brand. It currently includes 300 ParcelShops in eight major Russian cities, including Moscow, St. Petersburg, Yekaterinburg and Novosibirsk. This network, which reduces delivery time for many customers by up to five days, is to encompass 1,500 shops in 44 cities across Russia by 2014. Hermes also expands its presence in the EU , with the opening of 500 ParcelShops in 25 major UK cities.
A few more innovations: Customers of HLGD can now get real-time updates on a parcel’s current location, either with a computer or a mobile device. HLGD also releases an app for the iPad – a first among German parcel services. On top of that, the www.myhermes.de interface for private customers is comprehensively revamped, setting new standards in terms of user-friendliness and design.
These service innovations are matched by an award as “Service Champion”. HLGD is declared the industry winner in terms of service quality by Germany’s biggest service ranking survey, which is based on a multi-sector analysis conducted annually by the Goethe University of Frankfurt, “Die Welt” daily newspaper, and the ServiceValue GmbH consulting company. Hermes achieved the highest score in the “Parcel Services” category, thus winning a gold seal.
Furthermore, Hermes creates a lavishly produced and historically contextualized chronicle for the company’s 40th anniversary, in book form and online.
2013
Revenue exceeds €2 billion for the first time
For the first time in its history, Hermes achieves over €2 billion in revenue. The company thus continues its growth trajectory for the ninth year in a row, increasing total revenue by 8% to about €2,083 million, compared to €1,928 million in 2012. A big part of this is the European parcel services, transporting with 496 million parcels about 10% more than in the previous year. The company’s positive development leads to the addition of 700 new jobs – Hermes now has 11,814 permanent employees in more than 20 countries.
Hermes is also continually expanding its worldwide presence. In November, the company opens a new laboratory for quality control and certification in Shanghai, the biggest one outside Europe. Furthermore, in terms of web enabling, Hermes is rigorously pursuing its strategy of opening new markets to retail, as seen in the launch of the first Lascana online shop in China by Hermes NexTec.
In addition, Hermes releases for the first time an extensive group-wide environmental sustainability report, entitled “Networked Action”. The report fulfils the high standards of the Global Reporting Initiative (GRI). So it’s only natural that Hermes is compensating for all its flights by supporting recognized nature conservation projects, starting in March. The company’s partner in this initiative is “atmosfair”, which is a non-profit organization dedicated to global climate protection. This partnership supports the Sunderbans National Park in India, which is a protected UNESCO World Heritage Site and the home of various rare plants and animals. Furthermore, HLGD relies on “Cotton made in Africa” (CmiA). Since November, the outfits of the approximately 13,000 delivery personnel in Germany have been made of cotton grown according to ecologically and socially conscious criteria. This is how Hermes and CmiA are supporting some 475,000 cotton farmers who produce the raw material on the African continent.
Meanwhile, Hermes Fulfilment shines in a different way by receiving the Logistics Innovation Award from the Association of German Engineers (VDI). This recognizes Hermes Fulfilment for its returned-goods management system that allows items to become available again in quick and economical way, especially in the fashion sector. The VDI particularly highlighted the system’s high degree of automation and its maintenance strategy.
Hermes’ sponsorship of German professional football as a premium-partner brought it widespread visibility. Starting with the second half of the 2012/13 season, all players in the first and second leagues were wearing the company’s logo on the jersey’s left sleeve, on every game day. Hermes was also the official transporter of the championship trophy. This contract was running until the end of the 2016/17 season.
2014
Record-breaking revenue again and progressive digitalization
In the 2014 business year, Hermes continues its long run of growth success. Global revenue thus increases by more than 7% to €2,230 million, compared to €2,083 million in 2013. Two more records: the 530 million parcel mark is broken in the European and logistics business, and the workforce swells to 12,470 employees worldwide, an increase of 656. A major reason for this is the quality of its delivery service, attested for many years by independent experts – thus in 2014, the Stiftung Warentest consumer testing foundation once again rates Hermes its test winner.
This year sees the addition of a new service letting customers plan ahead even better for receiving parcels, such as by redirecting deliveries at short notice. HLGD thus answers the demand for individualized control in parcel delivery, allowing the recipient to direct the process as much as possible. This lets recipients know the precise hour of parcel arrival. The delivery time window is calculated by specially designed parcel notification software. Every day, this software is fed new data on long-distance transport and the last mile, including information from transshipment facilities and delivery rounds (such as routing and average travel times), along with plenty of other process-relevant data, such as weather and traffic forecasts.
Hermes continues investing in its infrastructure, both within Germany and abroad. For example, a 100,000 m² goods distribution centre is being built in the town of Löhne (in North Rhine-Westphalia) for another €90 million, to be occupied in 2015 by Hermes Fulfilment and Hermes Einrichtungs Service.
Hermes is also expanding its presence in China. For this, the Hermes Transport Logistics Greater China company is established in Hong Kong. The target group is Chinese retailers who need logistics solutions for procuring supplies or dispatching goods. Here, the focus is on complete supply-chain solutions as well as environmentally friendly transport in terms of air and sea freight.
Meanwhile, Hermes receives a special award at its home base. The Air Quality Partnership, initiated by the City of Hamburg and the city’s business community, honours the company as an “Air Quality Partner 2014”. According to the judgement, Hermes stands out for its extensive commitment to low-emission mobility – not only in terms of parcel delivery, but also the mobility of its employees. With its various corporate endeavours to protect the climate and environment, Hermes is one of the leaders in its industry.
In order to achieve another corporate goal, namely continued growth, Hermes decides to make a massive investment in modernizing the logistics infrastructure of its German parcel division. From now until 2018, around €300 million will be dedicated to meeting the needs of the growing online retail sector. Here, the company wants to establish itself more strongly as a partner for small and medium-sized shippers too. To do so, the plan is to restructure the logistical network into 35 high-performance, optimally located logistics centres, positioning them to handle over 400 million parcels per year.
2015
Hermes sustains growth momentum
Hermes continued its growth momentum 2015 with revenues rising eleven percent to EUR 2.46 bn. It transported 580m parcels across Europe with 74 percent of consignment volumes for clients outside the Otto Group, up 16 percent. Noteworthy is also the growth of business in the USA and China as well as the positive trend in its existing portfolio.
With the launch of its start-up business unit BorderGuru, Hermes has been strengthening its position in the booming international business with online retailers, focussing primarily on the Chinese and American markets. At the same time, it has invested in the same-day-delivery start-up, Liefery to help meet the growing demand in the retail industry for express delivery. In a number of metropolitan regions in Germany, Liefery provides express deliveries within 90 minutes or within a chosen time band.
Hermes expanded its German business significantly through the acquisition of new clients. These not only included major distance sellers such as Yves Rocher and Glossybox, but also many small and medium-sized retailers who prefer Hermes as their logistics partner. This is in no doubt attributable to developments in its logistics network with modernisation scheduled for completion in 2019. These have already resulted in greater proximity to clients and customers, and shorter delivery times. Private customers are also increasingly benefiting from digitisation at Hermes. The mobile app, which enables parcel labels to be generated by smartphone, and nominated time bands, giving customers greater control of the delivery process, have already proven successful with consumers.
But growth and progress were not solely confined to the German market; all signs are clearly pointing towards growth in the UK, too. Hermes' parcel business in the UK, continued to strengthen its position as the country's leading private consumer delivery specialist. In its continued effort to handle rising parcel volumes, Hermes began construction of a new 25,000 square metre logistics centre in Warwickshire to help process shipment volumes from the UK to 190 countries worldwide.
In Austria, Hermes introduced Saturday deliveries to its 1,600 ParcelShops in 2015 – a USP on the national market, which significantly reduces delivery times. In addition, Zalando and Hermes Austria launched a pilot project in collaboration with Liefery to process same-day returns for customers in Vienna.
2016
Hermes grows market share and expands its core business in Europe
Adjusted for currency translation effects, Hermes grew its revenues in 2016/17 by more than seven percent to 2.64 billion euros. Hermes expanded its market share, primarily in its parcel and bulky goods segments. The company was also able to strengthen its position on the French market. Worldwide, Hermes currently has a workforce of 12,618 employees.
Steady growth in Europe. The Hermes parcel businesses in Germany, Austria, the UK, Italy and Russia delivered ten percent more parcels, catalogues and other consignments than in the prior year, chalking up record volumes of around 640 million consignments. Around 75 percent of shipment traffic resulted from business with clients outside the Otto Group.
The integration of the French parcel shippers Mondial Relay and 2-man handling specialists Girard Agediss (previously 3SI) has enabled Hermes to strengthen its competitive position in France and in other European markets. The two companies have been part of the Hermes Group since January 2017. Headquartered in Lille, Mondial Relay currently operates four hubs and 24 depots in France. In addition, the company's 600 employees also manage operations in Belgium, Luxembourg, Spain and Portugal. Mondial Relay shipped 57 million consignments in 2016.
The Group's 2-man handling unit, delivering furniture and furnishings, also developed significantly with volumes growing by more than six percent. In transporting over five million items of furniture and larger appliances, Hermes has again built on its position as quality and market leader in the 2-man sector in Germany. Hermes Einrichtungs Service's prosperous business is now to be given a further international boost through its cooperation with Girard Agediss.
In Germany, Hermes is preparing to continue its infrastructure developments across the whole 2C parcel market (B2C and C2C). As part of the 300 million euro investment programme launched in 2014, a total of nine state-of-the-art, environmentally-friendly logistics centres are to be constructed by the end of 2019. In addition, Hermes is investing in modernising and electrifying its fleet of vehicles and has agreed a comprehensive strategic partnership with Mercedes-Benz. And by 2020, Hermes Germany is aiming to deploy 1,500 Mercedes-Benz electric-powered delivery vans in conurbation areas around the whole country.