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Deutsche Post DHL – The Mail & Logistics Group
Automotive
DHL Supply Chain Solution
• Warehousecollaborationtoprovidelocal,shared-usedistribution
• Optimalsitelocationusingrouteplanninganddesignexpertise• Cross-trainingofexistingstafftohandleburstsofactivity• Flexiblewarehouseteamprovidingreceipt,putaway,pickand
despatch
Customer Challenge
• Upgradesparepartsdistributionmodelfromovernightnextdaytouptofourdeliveriesaday
• Needforlocaldistributionwarehouselocationswithgoodproximitytoservicecenters
• Costeffectiveandflexiblewarehousingsolutionneededtohandleburstsofactivity
LOCAL SPARE PARTS DISTRIBUTION DRIVES SALES AND IMPROVES CUSTOMER SERVICE
CUSTOMER CHALLENGEIncreasedcompetitionfromindependentmotortradersandservicegroupsoverrecentyearshaspromptedmanycarmanufacturerstoexplorenewwaysofoperatingtheiraftersalesbusiness,withafocusonimprovingcustomerservicelevelsandincreasingtheirshareofthelucrativeaftersalesandsparepartsmarket.
Historically,thismajorcarmanufacturerhadoperatedamodelinwhichservicecentersreceivedjustonesparepartsdeliveryperdayonanovernightnextdaybasis.Thiswasimpactingservicelevelsbyforcingcustomerstoreturntothecentertocompleterepairsorleavetheirvehicleovernight.Also,notbeingabletofitpartsonthedayoftheserviceorrepairmeantcustomerswouldseekoutalternativeindependentsuppliers,withasubsequentimpactonthesaleofspareparts.
Whenoneoftheworld’sleadingcarmanufacturersneededawaytoradicallyupgradeitssparepartsdistributionmodel,itcalledonDHLSupplyChain’sprovenexpertise.Theinnovativeshared-userlocaldistributionsolution(currentlyrolledoutacross11regions)enablesthebusinesstomakeuptofourdeliveriesadaytoitsserviceandrepaircenters,resultinginhigherlevelsofaftersalescustomerserviceandincreasedsalesofspareparts.
Customer Benefits
• Improvedaftersalescustomerservicelevels• Increasedsalesofhighmarginspareparts• Reducedinventorycostsatservicecenters• Highervolumeofserviceandrepairwork
Deutsche Post DHL – The Mail & Logistics Group
Automotive
For further information
Contactourexperts:[email protected]/supplychain
Toreversethistrendandimproveitsoverallaftersalesoperationsthecompanydevelopedaradicalnewstrategythatwoulduselocalsparepartsdistributiontosupplyclustersof20to30servicecenterswithuptofourdeliveriesperday.ThisnewapproachwasputouttotenderandDHLSupplyChainwereselectedbasedontheirinnovativeproposal,thelocationofitswarehousingfacilitiesandprovenautomotiveexperience.
DHL SUPPLY CHAIN SOLUTIONKeytotheDHLSupplyChainsolutionwastheuseofshared-userwarehousingfacilities.Collaboratingwithlargerclientsofthesiteandcross-trainingDHLSupplyChainstaffenabledtheshortburstsofactivityrequiredforfoursparepartsdespatchesadaytoberuninacost-effectiveway.
Inaddition,thespreadofexistingDHLSupplyChaindistributioncentersinanygivencountryorregionenabledtheoptimumlocationforlocalsparepartsdeliverytoaclusterofservicecenters.ThelocationswerechosenusingDHLSupplyChain’sextensiverouteplanninganddesignexpertiseusingamilkrunroundtriptominimisetransportationmileage.
Tofacilitateshared-useDHLSupplyChainworkedcloselywiththemanufacturertoensureselectedmembersoftheexistingwarehouseteamwerecomprehensivelytrainedonthenewoperationalrequirements.Thisbenefittedbothclientsinthecollaborationbycreatingamulti-skilledworkforcethatcouldbedrawnintomeetfluctuationsindemand,includingtheburstsofactivityrequiredtodespatchsparepartsuptofourtimesaday.DHLSupplyChainreconfiguredpartofthewarehousetoprovideaflexiblesolutionthatincludedreceipt,putaway,pickanddespatch.
Makinguptofourdeliveriesadaywouldalsomeanthatdealersandservicecenterswouldnolongerneedtostockcostlysparepartslocally,freeingupbothresourceandspace.
Toensureasmoothstart-up,DHLSupplyChainuseditsprovenDePict®projectmanagementmethodologytoclearlydefineroles,responsibilitiesandactions,andtrackthemtocompletion.
FollowingthesuccessofthefirstdeploymentDHLSupplyChainwaschosenbythisleadingcarmanufacturertodevelopandoperateshared-userlocal
“WeselectedDHLSupplyChainbecauseofitsinnovativeproposalofcosteffectiveshared-userlocalsparepartsdistribution,andbecauseofitwasabletoprovideuswiththeoptimumlocationsrelativetoourservicecenters.Thesethingstogetherenabledustomovefromovernightnextdaydeliveriestouptofourdespatchesaday–whichiscentraltoourstrategytoimprovecustomerserviceandincreasethesalesofspareparts.”
partsdistributionin10otherregionsacrossEuropeandtheUnitedStates.Eachsubsequentprojecthasbeencompetitivelytendered.
CUSTOMER BENEFITSPartneringwithDHLSupplyChainhasenabledthisleadingcarmanufacturertoradicallytransformthewayitoperatesitsaftersalesandsparepartsbusiness.Thishasnotonlyledtoimprovedcustomerservicelevelsandincreasedsalesofhighmarginsparepartsbutalsoseveralknock-onbenefitsforitsauthorisedservicecenters.
Eliminatingtheneedtocarrysparepartsinventoryhasenableddealersandservicecenterstoreducestockingandobsolescencecostsandfreeupspaceforincreasedservicingandrepairwork.Inaddition,completingmorejobsinagivendayhasledtoanincreaseintheoverallvolumeofservicingandrepair.Finally,marginshavealsoimprovedby,forexample,reducingtheneedforovernightandlongertermcourtesycarusebycustomers.
Buildingonthesuccessofthisflexibleandresponsivelocalapproachtosparepartsdistributionisalsoenablingthebusinesstoexplorewaysoffurtherincreasingitsmarketsharebyprovidingacosteffectiverouteforsupplyingsparepartstoindependenttradersandrepairshops.
