Flexible, scalable solution enables stronger supply chain

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TECHNOLOGY CASE STUDY

FLEXIBLE, SCALABLE SOLUTION ENABLES STRONGER SUPPLY CHAIN MANAGEMENT

A leading multinational business specializes in optics and imaging products. With declining consumer demand for products such as digital cameras, the company now concentrates on the high-end

CUSTOMER CHALLENGE: nn

Reduce costs

nn

Stronger supply chain management

nn

Time-sensitive inventory

professional photography market, but has also diversified into product lines such as precision equipment, rifle scopes, range finders, scanners, microscopes and binoculars. In the U.S. DHL provides support with Fulfilment, Kitting, Returns, Test & Screen, and Service Parts fulfilment services.

DHL SUPPLY CHAIN SOLUTION: nn

Flexible, scalable design

nn

Integrated warehousing and kitting

nn

New warehouse management system implemented

CUSTOMER CHALLENGE

nn

Innovative technology deployed

nn

Continuous Improvement

Despite the consumer digital camera market having declined, the

CUSTOMER BENEFITS:

company’s focus on cost control and expansion into other markets is

nn

forecast to drive growth. However, in order to meet its growth targets, it aims to reduce costs and bolster its supply chain management. The end of the contract with its previous logistics provider presented an opportunity for the company to look elsewhere to lower its costs and improve the strength of its supply chain. It looked to redeploy parts of its workforce into focusing on efforts that would align with

Streamlined finished goods and returns business

nn

Costs reduced

nn

Added value for end-customer

nn

Improved warehouse performance

nn

Reduced window for unsellable inventory

the sales and support portions of its business.

DHL Supply Chain – Excellence. Simply delivered.


The company also wanted to reduce its transportation costs,

As a company with innovation as a focus and a

and achieve a supply chain that was better designed to

digitalization strategy, DHL is deploying some of the latest

accommodate scalability and flexibility for business growth.

examples of supply chain technology at the facility. Vision Picking is carried out by personnel equipped with smart

Additionally it sought a logistics provider that could

glasses, enabling completely hands-free order picking.

address the problem of time sensitive inventory which, if

Robotics and automation are also being used to assist

held for too long, becomes unsellable.

kitting services, while a warehouse storage solution from

DHL SUPPLY CHAIN SOLUTION

Speed Cell is maximizing the space available for storage. The team has also performed a Carton Optimization analysis for the Fulfillment business which was highly

With flexibility and scalability as central design parameters,

successful. This continuous improvement initiative to better

DHL designed an integrated warehousing and kitting

optimize carton size for shipments is expected to provide

solution that would improve quality and visibility, while

the company with annual savings in the region of $350,000.

reducing operating costs. The knowledgeable and experienced DHL operations team DHL’s solution also allows flexibility in the levels of labor

understands the need for timeliness from a customer whose

and storage required which can be highly seasonal and vary

state-of-the-art products can quickly become unsellable as

from week to week. The design is built around a flexible

technology advances.

footprint and work force that can expand for peak seasons and retract during steady state operations.

CUSTOMER BENEFITS

DHL implemented a new JDA warehouse management

DHL’s ability to introduce innovative solutions, and its work

system (WMS) at the facility in Columbus, Ohio. This serves

to streamline the finished goods and returns business, has

as the warehouse system of record for management of

led to a highly successful strategic partnership.

inventory into and out of the warehouse. In addition the program was implemented within a Foreign Trade Zone

Following an intense focus on meeting product delivery

(FTZ) area which is fully integrated with the WMS. It is also

and quality targets, and satisfying customer expectations,

integrated with the company’s systems and with the system

DHL has played a major role in helping the company

that handles parcel orders. Manual entries are kept to a

achieve its goals of cost reduction and stronger supply

minimum in order to simplify the process.

chain management. It has also reduced the time window before inventory becomes unsellable. Freight and parcel shipping costs have been cut significantly and a more flexible, scalable supply chain now delivers more value to the end customer. Warehouse performance has also been significantly improved, with DHL having exceeded targets for inventory location accuracy, on-time shipping, and on-time receipt.

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DHL Supply Chain – Excellence. Simply delivered.


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