DSV and DB Schenker are made for one another

The world of logistics experienced a continental shift last May, when Denmark-based DSV acquired the entire capital stock of German DB Schenker for the price of EUR 14.3 billion.

The largest logistics company in the world was born.

The merger of the DSV and DB Schenker companies in Finland was finalised on 1 December. Petteri Nurmi, Managing Director of DSV Road, states that the Finnish merger was realised by organising the business activities according to the DSV corporate structure into three different companies: DSV Road Oy, DSV Air & Sea Oy and DSV Contract Logistics Oy.

“That is the DSV model. At Schenker, all business activities were under one company”, Nurmi compares.

A perfect pair

While working for DSV, Nurmi immediately realised the benefits gained from combining forces. He now fully understands why the merger was carried out.

Nurmi thinks that the companies’ strengths were an excellent match. The merger complements the new company’s service portfolio by bringing the strengths of each company under one roof.

With its international terminal network, Schenker was strong in road transports and general cargo transports in particular. DSV brings to the equation excellent competence in LTL and FTL traffic.

Now the scope of logistics services – be it the transport of parcels, domestic or foreign general cargo or anything else – is available to the customer even better than before.

According to Nurmi, the achieved synergy benefits have to do with efficiency, guaranteed by greater volumes, better load factors and improved frequencies. These factors together make for better service for the customers.

“I immediately noticed on day one that this was an excellent pairing”, Nurmi says.

DSV does not intend to rest on its laurels after the merger. Nurmi states that the company wants to grow, which will create new growth opportunities also for DSV’s partners.

Among them is the Port of Turku, which Nurmi considers an important co-operative partner.

“Both DSV and DB Schenker were strong in Scandinavian transports. Up until now, we have travelled through the port under two different flags, but in the future, we will all travel under one flag. Together, we are a major player. Our intention is to have even more DSV vehicles passing through the port of Turku in the future”, Nurmi outlines.

Faster action

For Nurmi, the merger is also a big personal change. He worked for Schenker for 27 years.

“This was a big change for me, going from a German state-owned enterprise to a Danish publicly traded company. DB Schenker was owned by the German state railway company.”

“A lot of things will change in the decision-making. DSV has a flatter organisation and makes decisions faster. The company has less bureaucracy than a German state-owned enterprise. The management of a German company involves a kind of 100% double-checking, where decisions are always confirmed by the next level in hierarchy. DSV is more focused on just getting things done”, Nurmi compares.

Text: Esko Pihkala
Images: Lennart Holmberg, Jouni Saaristo & Jarmo Piironen