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Title: PowerPoint Presentation DHL GLOBAL CUSTOMER LOGISTICS Vision and Strategy


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DHL GLOBALCUSTOMERLOGISTICS
Brussels, October 19, 2002
Sacha Van Hoever, Senior Logistics Consultant,
DHL Global Customer Logistics
3
Contents
  • Introduction to GCL
  • DHL Global Customer Logistics
  • Vision Strategy
  • DHL Partners
  • Service Parts Logistics
  • Reverse Logistics
  • Service Parts Logistics Survey 2002
  • Case Study

4
The business environment is changing
Globalisation
E-commerce
Focus on core competencies
Customer Service Explosion
Time to market compression
Organisational Integration
Creation of virtual enterprises
PLC Reduction
One stop shopping
5
Global Customer Logistics
Global Customer Logistics
6
Global Customer Logistics
  • Created in 2001 for addressing the needs and
    requirements of DHLs global customers
  • developing
  • implementing
  • proactively managing
  • integrated express distribution and logistics
    solutions on a regional and truly global level

7
DHL Global Customer LogisticsVision
long term preferred partner of choice for the
leading global companies
To enable DHL to become the long term preferred
partner of choice for global express distribution
and express supply chain solutions for the
leading global companies within DHLs target
industries
8
Global Logistics Organization StructureGlobal
Virtual Teams
Global Logistics
Logistics EMEA
Logistics AP
Logistics NA
Global Partner Alliance
Partner Alliance
Global Business Acquisition Support
Business Acquisition Support
Global Pricing Profitability Analysis
Pricing Profitability Analysis
Global Logistics Infrastructure
Logistics Infrastructure
Global Quality
Quality
Global After Sales Program Management
After Sales Program Management
9
DHL GLOBALCUSTOMERLOGISTICSGlobal
LogisticsVision and Strategy
10
DHL Global LogisticsVision
DHL Global Logistics will be the Global Leader in
(time-sensitive) parts distribution with
real-time information technologies supporting
consistent global offerings. DHL will develop
integrated solutions targeted at high value, high
impact goods.
11
DHL Global LogisticsOur approach
e.g. DPWN and Others
12
DHL GLOBALCUSTOMERLOGISTICSDHL and Partners
13
Our Partner Relationships
START
  • No. of shared Services
  • Larger Investments
  • Longer Duration
  • Enhanced Process Integration

Shareholder Partners
Selection Protocol
Global/Regional
  • Geographical scope
  • Importance
  • Number of Projects

Strategic Partners
Third Party (3PL) Service Providers
Local
Number of Partners
14
DHL Shareholders
Two Investment Trusts remaining 23
15
Deutsche Post World Net
33 bln EUR turnover, 318 k people
  • Germany
  • 130 bill. Euro on balance sheet
  • 10 Mio clients
  • 13,500 branches
  • Europe
  • Pan-European parcel network
  • Worldwide
  • DHL in 228 countries territories
  • Germany
  • 69 Mio letter items per day
  • High speed
  • Worldwide
  • Danzas, AEI
  • 150 countries
  • 38,000 people

16
3 Types of Logistics Service Offering
17
DPWN 4PL Platform
18
DHL GLOBALCUSTOMERLOGISTICSService Parts
Logistics
19
The importance of supply chain management
  • As we are moving from competing brands to
    competing supply chains, logistics has become one
    of the key drivers of competitive advantage.
  • Some companies have recognised this, however they
    have been focussing on the supply chain driving
    the production and sales of finished goods (e.g.
    Dell).
  • Yet there is another supply chain within these
    companies, also heavily affecting customers and
    business results, which is often largely being
    ignored

The Service Parts Supply Chain
20
The Service Parts Supply Chain
  • Traditional bases of competitive advantage no
    longer suffice the search is on for new
    opportunities for differentiation
  • Competitive advantage is sought in parts of the
    value chain that thus far have been overlooked or
    under-addressed.
  • After sales is one of those areas
  • Traditionally too fragmented
  • Poorly linked with other parts of the
    organisation
  • Received little management attention
  • However, by reengineering the service parts
    supply chain companies can
  • Create competitive differentiation
  • Improve customer retention
  • Increase earnings from after sales support
  • Reduced cost of after sales support
  • Customer satisfaction

21
Do you leave money on the table?
22
Strategic importance
  • Initial equipment sales
  • High sales costs
  • No relationship
  • Poor customer info
  • Low profitability
  • Operational after market service
  • Relatively low sales cost
  • Ongoing relationship
  • Good margins
  • High support costs
  • Back to square 1
  • Missed opportunity for customer loyalty
  • Repeat sales will be just like the initial sale
  • Lost after market service account
  • Repeat equipment sales
  • Low sales costs
  • Established relationship
  • In-depth customer info
  • Increased profitability
  • High switch costs

Poor AMS performance
Good AMS performance
23
Revenue and Profit life cycle
Finished Goods
Service
Relationship
Time
Revenue
Finished Goods
Profit

Service
Time
24
SC impact on shareholder value
Service logistics has a significant impact on
shareholder value
25
The significance of Service Parts cannot be
neglected
,,Spare parts represent 700 billion in spending
and 8 of GDP in the United States
alone Piper Jaffray, U.S. Bancorp
26
Service Logistics in after market service
  • Service logistics is an important enabler to
    improve after market service

Customer
Call center
The goal Is to get the right person with
the right skills at the right place at the right
time with the right parts for a first time fix at
the LOWEST COST
Field service
Service control
Logistics based activities can account for more
than 90 of the total costs of delivering after
market service - source Accenture.
27
Building blocks for service logistics
  • Several building blocks are added to build
    service logistics related supply chain
    configurations

Operations
Transport
Inventory
Handling
Others
Vendors
Modes
Handling in
Duties
Plant
Plants
Inbound
DC
Handling out
Info. substitute
DC
In transit
VAL
Inter DC
Platform
Consignment
Outbound
Repair
VAL
Recycle
Strat. Inv. Depl.
Call centers
Upgrade
Parts replen.
Re manufacture
Field engineers
De manufacture
Repair centers
Refurbish
Disposal centers
28
SL typical process description
Call management
Field service operation
Call reception
Diagnostic
Job assignment
Job acceptence by fieldservice
Match field engineer part
Repair on site
Return part
Call closed
Part request at warehouse
Return part received in repair center
Part delivery
29
Service Parts Supply Chain strategyDemand/Supply
characteristics
Plan execute (lean)
Hedge deploy (hold inventory)
React execute (agile)
Continuous replenishment
30
Drivers / characteristics of a service parts
supply chain
  • Large number of skus (DC - optimization)
  • High percentage of slow or non-movers
    (forecastability, obsolescence)
  • Large variation in form / size / weight
    (handling)
  • Relation with finished product serial number
    (information)
  • Long term service obligation (end of life
    decisions)
  • High standards for
  • product availability
  • responsiveness / speed (cost of downtime)
  • Service Level Agreements (SLA) common
  • Consumables versus spare parts

31
Key customer support logistics area
Primary logistics challenge
Service parts inventory management
Maximising parts availability with minimum
inventory and costs
Service parts warehousing
Maximising order fulfilment effectiveness while
minimising costs
Service parts transportation
Providing rapid parts delivery while minimising
costs
Services parts order processing and fulfilment
Maximising order entry and processing while
minimising costs
Service parts sourcing
Finding and developing low-costs/high-quality
sources of supply
Service parts procurement
Ensuring timely delivery of high-quality parts at
minimum costs
Service technician capacity planning

Maintaining the appropriate number of technicians
to support demand
Service technician scheduling
Ensuring service technician capacity is
effectively utilised
Managing deployment of service technicians on an
hour-to-hour basis
Service technician dispatch
End-user service requirements determination
Accurately identifying customer satisfaction
needs and expectations
End-user customer service management
Managing appropriate response to customer service
issues
32
Characteristics - trade off required
Business profit
Customer satisfaction
Cost to service
Service quality
  • Cost elements
  • Inventory costs
  • Downtime costs
  • Repair costs
  • DC operating costs
  • Transport costs
  • (Second) call costs
  • Human resources costs
  • Distribution costs
  • Quality elements
  • First time right (diagnosis and repair
  • Minimum downtime (response repair)
  • Simple communication (hassle free, 24/7)
  • Parts availability
  • Job planning (part, engineer, site)
  • Right tools and skills utilized
  • Right parts

How do I deliver quality service?
What drives my ability to.. - compete on price -
meet profit margin targets?
33
Trends
  • Increasing customer demands
  • Dramatic expansion in range and sophistication of
    service offerings
  • Increasing complexity in service techniques
    requirements
  • Global service requirements due to globalization
  • Integrated service chain planning and operations
    (parts, repair, DC, transport, engineer,
    installed base)
  • Ability to turn logistics errors into marketing
    and sales opportunities
  • Increasing differentiation of similar products
  • Remote diagnosis / pre- alerts (self diagnostic
    capabilities)
  • Inventory pooling
  • Design consistency across product offerings
  • Full parts inventory visibility (network-wide)

34
Example remote diagnosis
35
Example Inventory pooling
Cycle stock
Cycle stock
Safety stock
Safety stock
Company x
Company y
Pooling
Cycle stock
  • Lower safety stock and
  • lower average inventory
  • With same service level!

Safety stock
Company x y
36
DHL GLOBALCUSTOMERLOGISTICSReverse Logistics
37
Service Parts Supply Chains
38
Network DesignMulti-level decoupling points
39
Different models within service parts logistics
Distribution Models
Ways to Influence TAT
  • Repair and Return
  • Retrieve defective unit
  • Repair defective unit
  • Send back repaired unit
  • Inbound and outbound item are identical
  • Exchange / Replacement
  • Retrieve defective part
  • Send spare part
  • Inbound and outbound item are different
  • Consumable
  • No Return only outbound
  • Early delivery
  • Before 900
  • Before 1200
  • Delivery the same day
  • Bullet van
  • On board courier/NFO
  • Private jet renting
  • Repair at the central hub
  • End of runway
  • Stocking Locations
  • Regional storage location
  • Strategic parts centers

40
Different DHL products
  • Transportation Real Time Info
  • 3 Leg Repair and Return (No packaging available)
  • 2 Leg Repair and Return (Packaging available)
  • End of Runway (12 h repair window)
  • Transportation, Warehousing Real Time Info
  • Return Repair Inventory (4 leg RMA from central
    stock)
  • Direct Express Inventory (Consumable from central
    stock)
  • Strategic Inventory Management (Consumable from
    strategic stock)
  • Variations of the above

41
Effect on the Total Turn around time by combining
models and infrastructure
42
Parameters influencing the model choice
  • Customer organisation
  • The service mindedness of the organisation
  • Do you see service as a means to gain a
    competitive advantage?
  • Availability of local field engineers
  • Willingness to hold stock (value of the items)
  • Item type
  • Consumable vs. serviceable
  • High end vs. low end
  • High value vs. low value
  • Customers customer
  • What does the enduser expect (management of the
    expectations)
  • High value vs low value
  • Installable by customer
  • Impact of the product
  • Physical aspects

43
DHL GLOBALCUSTOMERLOGISTICSSpare Parts
LogisticsSurvey
44
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DHL GLOBALCUSTOMERLOGISTICSSolution Components
50
DHL Global Logistics Solution Elements
51
DHL Global Logistics Solution Elements
  • DHLs logistics solutions consist of
  • Strategically positioned storage locations
  • Express Logistics Centers
  • Strategic Parts Centers
  • Logistics Customer Service Center
  • DHL Worldwide Express Transportation network
  • Same day dedicated transportation
  • Group of dedicated people offering support on
    day-to-day operations
  • Comprehensive IT solution

52
Logistics Capabilities
  • DHLs logistics solutions consist of
  • Strategically positioned storage locations
  • Express Logistics Centers
  • Strategic Parts Centers
  • Logistics Customer Service Center
  • DHL Worldwide Express Transportation network
  • Same day dedicated transportation
  • Group of dedicated people offering support on
    day-to-day operations
  • Comprehensive IT solution

53
ELC vs SPC
Products Stored
Speed of Transport
Main Function
Coverage
  • Value added services
  • Distribution
  • Repair (EOR)
  • Bonded stock
  • Overnight (International)
  • (Semi) finished
  • Repair parts
  • Spare parts
  • High product value or high opportunity cost
  • RegionalCenter

Express Logistics Center (ELC)
  • Local/AreaWH
  • Spare parts
  • Very high product value or very high opportunity
    cost
  • (domestic) same day
  • Distribution

Strategic Parts Center (SPC)
54
Global Network SPCs ELCs
9 Express Logistics Centers 273 Strategic Parts
Centers
55
SPC Network Europe - ME - Africa
Developments subject to change August 2002
106 SPC locations as at 01/08/2002 3 ELC
locations as at 01/08/2002 (Brussels,
Johannesburg, Bahrain)
Skelleftea
BGO
OSL
HEL
STO
SVG
GLA
BFS
Livingston
(NOT INDICATED ON MAP) Existing SPC Locations
Tel Aviv Israel Cairo Egypt Dubai Dubai Dahrain
Saudi Arabia Jeddah Saudi Arabia Riyadh Saudi
Arabia Kuwait Kuwait Larnaca Cyprus Las
Palmas Canary Islands Lausanne Switzerland Indica
tive SPC locations Ankara Turkey Belgrade Yugoslav
ia
MOW
GOT
DUB
KLL
Middlesbrough
MAN
CPH
Leicester
BRS
ORK
HAM
AMS
GDN
LHR (3)
BER
Plymouth
WAW
HAJ
BRU
DUS
LEJ
POZ
LIL
DRE
FRA
Rennes
KTW
CDG (3)
MZM
WRO
NUE
PRG
Tours
STR
NTE
SXB
BRQ
BTS
MUC
BSL
Dijon
BOD
VIE
La Coruna
LYS
LJU
ZRH
BUD
Bilbao
Padova
TLS
OVD
BUH
ZAG
Grenoble
OPO
MIL
BLQ
LIS
TRN
MRS
NCE
BEG
AOI
QPG
IST
BRI
VLC
XVQ
ESB
NAP
XML
PAL
CTA
56
SPC Network APAC
Sapporo
Hushiro
Aomori
Sendai
Tokyo
Matsumoto
Atsugi
Kanazawa
Shenyang
Nagoya
Seoul
Osaka
Okayama
Beijing
Kiheung
Hiroshima
Pusan
Oita
Fukuoka
Urumqi
Xian
Shanghai
Wuhan
Taoyuan
Chengdu
Taipei
Hsinchu
Futian
Islamabad
Tainan
Guangzhou
Hong Kong
Delhi
Hanoi
Dhaka
Ahemabad
Calcutta
Pune
Manila
Bombay
Bangkok
Hyderabad
Madras
Ho Chi Minh
Bangalore
Penang
Johor Bahru
Kuala Lumpur
Kuching
Colombo
Singapore
Jakarta
Darwin
Active/live SPC
Available SPC
Brisbane
Planned SPC
Sydney
ELC
Perth
Canberra
Adelaide
Auckland
Melbourne
Wellington
Hobart
Christchurch
-
1
57
SPC Network US
Seattle
Burlington
Portland
Boise
Minn/St. Paul
Rochester
Boston
Detroit
Hartford
Chicago
New York
Philadelphia
Teterboro
Cleveland
Sacramento
Salt Lake City
Columbus
Pittsburgh
Baltimore
Denver
Indianapolis
San Francisco
Washington
Cincinnati ELC
Las Vegas
Fresno
St. Louis
Nashville
Raleigh Durham
Los Angeles
Albuquerque
Atlanta
San Diego
Phoenix
Dallas/Ft. Worth
Orlando
El Paso
Miami
Austin
Tampa
San Juan
Houston
San Antonio
Guam
Myaguez
3 Existing/Operational Express Logistics Centers
(Cincinnati, Miami and San Francisco) -DHL owned
and operated regional distribution facilities
offering a complete menu of value added logistics
services 6 Existing/Operational Strategic Parts
Centers -Local parts centers offering a selected
menu of value added logistics services 36 Planned
Strategic Parts Centers (2002) -Local parts
centers offering a selected menu of value added
logistics services
58
SPC Network Canada
Toronto
Planned Strategic Parts Center (2002) -Local
parts centers offering a selected menu of value
added logistics services
59
SPC Network Latin America
Bermuda Hamilton
Miami US
Mayguez PR
Ciudad Juarez
Monterrey
San Juan PR
Santo Domingo DR
Guadalajara
Barbados
Nicaragua
Mexico City
Jamaica
Trinidad Tobago
Guatemala
Valencia
El Salvador
Costa Rica
Venezuela
Panama
Columbia
Ecuador Quito
Recife
Existing/Operational Express Logistics Centers
(Miami) -DHL owned and operated regional
distribution facilities offering a complete menu
of value added logistics services 15
Existing/Operational Strategic Parts Centers
-Local parts centers offering a selected menu of
value added logistics services 19 Planned
Strategic Parts Centers (2002) -Local parts
centers offering a selected menu of value added
logistics services
Salvador
Peru Lima
Brasilia
Belo
Bolivia
Brazil, Rio De Janeiro
Chile Santiago
Sao Paulo
Curitiba
Cordoba
Cordoba
Porto Alegre
Rosario
Argentina Buenos Aires
60
Global ELC Network Coverage
61
Logistics Capabilities
  • DHLs logistics solutions consist of
  • Strategically positioned storage locations
  • Express Logistics Centers
  • Strategic Parts Centers
  • Logistics Customer Service Center
  • DHL Worldwide Express Transportation network
  • Same day dedicated transportation
  • Group of dedicated people offering support on
    day-to-day operations
  • Comprehensive IT solution

62
Logistics Customer Service Centers
63
Logistics Customer Service Centers
  • Fact file
  • Regional Logistics Call Center
  • Located in Brussels, Singapore Phoenix (AZ)
  • Provides Multi Lingual Call Center Services
  • 24 x7 Coverage
  • Emergency order handling
  • Remote Call Collection
  • RMA Handling
  • Single Point of Contact into multi SPC network
  • The heart of many DHL Logistics Solutions

64
Logistics Customer Service Centers
Languages Covered
65
Logistics Capabilities
  • DHLs logistics solutions consist of
  • Strategically positioned storage locations
  • Express Logistics Centers
  • Strategic Parts Centers
  • Logistics Customer Service Center
  • DHL Worldwide Express Transportation network
  • Same day dedicated transportation
  • Group of dedicated people offering support on
    day-to-day operations
  • Comprehensive IT solution

66
DHL Global Network Fact File
67
Logistics Capabilities
  • DHLs logistics solutions consist of
  • Strategically positioned storage locations
  • Express Logistics Centers
  • Strategic Parts Centers
  • Logistics Customer Service Center
  • DHL Worldwide Express Transportation network
  • Same day dedicated transportation
  • Group of dedicated people offering support on
    day-to-day operations
  • Comprehensive IT solution

68
Network of Sprinter CouriersSame Day Service
  • Bullet Vans
  • Dedicated transport
  • 24 x 7 service
  • 365 days per year
  • Escalation Procedures
  • Direct contact with LCSC

69
Logistics Capabilities
  • DHLs logistics solutions consist of
  • Strategically positioned storage locations
  • Express Logistics Centers
  • Strategic Parts Centers
  • Logistics Customer Service Center
  • DHL Worldwide Express Transportation network
  • Same day dedicated transportation
  • Group of dedicated people offering support on
    day-to-day operations
  • Comprehensive IT solution

70
Day to Day SupportAccount Management
  • Responsible for all communications with Global
    and regional customers
  • Ultimately responsible for resolving functional
    issues within its respective regions
  • Resolve, deploy, and mobilize the individual
    functional areas to deliver against action

71
Day to Day SupportBusiness Acquisition Support
Group
Business Acquisition Support Group André Benning
Supply Chain Systems Consultancy Group Reninca
Verbrugghe
Project Implementation Group Thierry Veys
Logistics Consultants RFQ Coordinators
Logistics SystemsConsultants
Implementation Managers
  • Design high-level supply-chain solutions
  • RFQ response management
  • Coordinate development of proposal
  • Supply chain studies
  • Roll-out of IT systems
  • Design customer IT solutions
  • Develop functional IT specifications
  • Coordinate implementation of IT solution
  • Design process models
  • Design of detailed solution
  • Implementation of the solution

72
Day to Day SupportProgram Management
  • To as per a set of pre-agreed service level
    agreements. Performance measurement will be done
    against Key Performances Indicators (KPI).
  • To be the for all follow-up activities requested
    by global or regional customers.

73
Logistics Capabilities
  • DHLs logistics solutions consist of
  • Strategically positioned storage locations
  • Express Logistics Centers
  • Strategic Parts Centers
  • Logistics Customer Service Center
  • DHL Worldwide Express Transportation network
  • Same day dedicated transportation
  • Group of dedicated people offering support on
    day-to-day operations
  • Comprehensive IT solution

74
RMA IT System Main features
  • Full RMA-RTV tracking and visibility
  • Customer Business rules embedded in software
  • License plate technology (bar codes)
  • Event driven
  • Exception management through various alert
    mechanisms
  • Target Stock Level management
  • Web based

75
Advantages
  • Better allocation of capital expenditure
  • Vendor consolidation
  • Expand capability and coverage
  • Single point of contact for total solution (LCSC)
  • Total visibility on RMA cycles across partners
  • Increase scalability and flexibility
  • Increase field engineer productivity
  • Decrease in costs
  • stock reduction
  • shorter turn around times
  • simplified processes
  • Improve customer satisfaction
  • ...

76
The Solutions
77
DHL Logistics Solutions
78
Direct Express Inventory (DEI)
79
D.E.I- Direct Express Inventory
CUST Suppliers
LCSC
5
8
12
ELC
CUST Customers/Engineers
CUST
3
1
80
DEIKey Benefits
  • Improved consistent service levels
  • Late cut-off times
  • Reduced Inventory Cost
  • Maximized Profit Window
  • Less Capital Investment
  • Improved Cash Flow
  • Shorter Distribution
  • Increased efficiency, control and transparency
  • Rapid Customer Response
  • Reduced Communications Cost
  • Allow concentration on core activities

81
Strategic Inventory Management (SIM)
Customer
82
S.I.M - Strategic Inventory Management Detailed
CUST Supplier
LCSC
ELC
SPC
SPC
CUST Customers / Engineers
CUST
83
SIMKey Benefits
  • Free up capital to focus on core competencies
  • Unleash management time and in-house resources
  • Add flexibility for changing market conditions
  • Speed cycle times for faster market response
  • Lower costs of inventory storage and handling
  • Enhance customer service regionally and globally
  • Simplified and centralised information and
    communication
  • Reliable high speed delivery
  • 24/7/52
  • Global coverage

84
Return and Repair Inventory (RRI)
85
R.R.I - Return Repair Inventory Detailed
CUST Repair Centre
CUST Supplier
LCSC
ELC
CUST Customers/Engineers
CUST
86
RRIKey Benefits
  • Improved customer service levels
  • Increased efficiency and transparency in the
    logistic pipeline
  • Reduced total pipeline costs and length
  • Allows concentration on core activities
  • Simplified and centralized information and
    communication
  • Effective and efficient returns of parts
  • Synergy effects through central repair instead of
    local repair action
  • Detailed reporting of services and failures

87
E.O.R - End OF Runway
CUST Supplier
Repair Centre
LCSC
ELC
CUST Customers/Engineers
CUST
88
DHL GLOBALCUSTOMERLOGISTICSCase Study
89
Who is Lucent ?
  • Revenue 34 billion in fiscal year 2000
  • Employees 87,000 people worldwide as of June 30,
    2001
  • Leading global supplier of
  • communications networking equipment,
  • Internet infrastructure for service providers,
  • Optical networking,
  • Wireless networks and
  • Communications networking support and services.
  • June 16th, 2000 DHL - Lucent contract signed
  • DHL Logistics program include Strategic
    Inventory Management, Direct Express Inventory
    Repair Return Inventory

90
How does the designed solution work ?
91
What has been the biggest impact since Lucent
changed strategy ?
  • Before
  • Service Logistics seen as a costly necessary evil
  • Inventory scattered throughout the countries
  • Duplication lack of structure in work efforts
  • Lack of inventory performance visibility
  • After
  • A source of competitive advantage ( future
    revenue streams)
  • Centralized controlled inventories
  • Professional dedicated support structure
  • Immediate real time visibility on performance

92
What are the highlights of the solution ?
  • Spares delivery anytime day or night within 2-4
    hours
  • Repair times monitored and managed
  • Certification of deliveries immediately fed back
    to Lucent
  • All daily movements visible on-line
  • New spares placed anywhere in Europe within 2
    days

93
Delivery Performance Q1 2002
94
What are the 3 driving forces behind the success
?
  • The power of

Looking at these 3 forces in detail...
95
The Power of Centralized Logistics ?
  • Cost visibility efficiencies
  • End-to-end business process set to Lucents
    Business rules
  • Customs clearance invoices automatically
  • All Logistics information accessible on line
  • Inventory levels
  • Delivery performance
  • Customer entitlements
  • Inventory turnover
  • Significantly reduced Repair cycle times
  • Standardized metric and management reporting

96
The Power of Lean and Flexible Logistics?
  • Immediate access to any stocking location,
    anywhere in the world with a limited amount of
    time
  • Ability to turn on/off logistics operations
    anywhere in the world with a limited amount of
    investments by customer
  • Ease of stock repositioning within 1 day
  • Customer service contracts are no longer dictated
    by logistics limitations, now lean flexible
    logistics accommodates and drives the service
    contracts

97
The Power of Information Technology?
  • Orders, reports inventory can be queried via
    the web any time, any place
  • Shipment delivery information automatically sent
    to your Mobile or PDA via SMS
  • Inventory moves automatically reflected on
    Customer Data repository for financials
  • An all bar code driven logistics operation
    ensures 100 error free process
  • Automated material planning ensures stock level
    efficiencies

98
What is the key component ?
?
PARTNERSHIP
99
After Sales Program Management enablement
  • Navigation evolution of shared open actions via
    Weekly conference calls
  • Continuous improvements on flows through
    performance KPIs availability of information
  • Value added services illustrated through
    implanting DHL key decision maker into the Lucent
    organization
  • Honest and open communication
  • Shared objectives goals are driving the team
    forwards through new challenges

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