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.
FOR FURTHER INFORMATION Contact our supply chain experts here Or visit our website
›
›
DHL Supply Chain – Excellence. Simply delivered.