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AUTOMOTIVE FLASH
DHL WHEELS
IN MOTION
DHL Business Unit – Excellence. Simply delivered.
DHL Customer Solutions & Innovation
De Kleetlaan 1
1831 Diegem
Belgium
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EDITORIAL
ON THE AGENDA…
Dear Valued Customers,
In a fast moving world, getting the relevant information is
a constant challenge! The DHL Automotive team is
committed to establish an industry-tailored communication
aimed at keeping you up to speed with on-going projects
By organizing customer events and conferences around
the globe we demonstrate our commitment to local and
customized offering.
05 SUSTAINABILITY IS ALL ABOUT
WORKING SMARTER
Sustainable Packaging
Multimodal
Battery Logistics
and relevant initiatives from a global logistics perspective. DHL Automotive team is willing to learn from local experts
and openly create a dialogue, share trends and innovative
09
The automotive sector is a dynamic arena. Effective ideas that may shape tomorrow’s automotive industry.
logistics is crucial for volume vehicle assembly that calls for
large number of components to arrive on time, in perfect Fathi Tlatli
condition, and in the right quantity. But operating to a
President Global Sector Automotive,
consistently high standard on a global scale is not enough.
DHL Customer Solutions & Innovation THE RACE TOWARDS SUSTAINABLE MOBILITY
Automotive players are keen to continuously innovate in and DHL Automotive Team
their product, market, and manufacturing strategies. eStory White Paper
Intense global competition demands that we respond to Urban Logistics
15
market trends and come with new solutions to support Volvo Cars Rolls Out New Innovation
customers’ needs.
THE CAR’S STAR
New Product Launches
Business of Recalls
Aftermarket Services
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MEXICO, A NEW In order to support this unprecedented assembly growth,
the whole automotive ecosystem, logistics providers
Implemented in 1994, the goal of NAFTA was to eliminate
barriers to trade and investment between the USA,
MAJOR PLAYER IN THE included, will have to face important challenges and
integrate the requirement of new stakeholders.
Canada and Mexico. This agreement has always benefited
the development of the automotive sector in Mexico to
AUTOMOTIVE GAME
the point that nowadays, Mexico automotive trade
Indeed, the premium manufacturers who didn’t take part to balance with the USA is largely positive for both finished
the early wave of investments into Mexico are quickly vehicles and parts. However, while material flows have
catching up. Entry of new brands like Audi, BMW and been quickly growing, custom processing capabilities and
Infiniti will shift product mix from 4% to 12% share of regulatory frameworks have failed to adapt fast enough
premium vehicles. Asian OEMs, including the Japanese ones, transforming the different USA-Mexico road border
have also planned to increase their assembly capacities and crossing in logistics bottlenecks.
At times when the global economic outlook remains uncertain especially for countries like
are actively developing their local supplier networks.
Brazil and Russia, Mexico appears as a safe haven for industrial investors and especially for On top of local logistics challenges the automotive
With new plants established serving mostly export industry in Mexico will have to cope with some gaps in
the automotive ones.
markets, an unprecedented new model launch activity supporting processes at the Tier 2 or Tier 3 level. If
(already 21 announced by 2020) will put additional Mexico has a very well established Tier 1 supplier base,
As the domestic market has grown, along with the
pressure on the domestic supply chain that already has to out of which more than 80% are large global companies,
economies of other countries in the region, many
completely overcome some historical challenges: some lower tier suppliers lack technological know-how
companies have been looking at a Mexico as a regional
and certain product offerings like body, powertrain and
and global export base. Over the last five years, Mexico’s
Infrastructure chassis rely heavily on imports of auto parts to meet the
light vehicle production has been on a remarkable growth
The World Bank’s Logistics Performance Index for 2014 gap in supply.
track (8.2% CAGR since 2010) driven by exports to the USA.
ranks Mexico 50th out of 160 countries in terms of supply
This impressive performance in a sluggish global and
chain efficiency. While many efforts and investments are
made to improve the country infrastructures some nodes
“YOU CAN ASSEMBLE A
regional macro-economic context has been made possible
by important amounts of FDI. Mexico has already
remain challenging. It is for example the case of maritime CAR WITH PARTS MADE
benefited from over USD 30 Billion FDI since 2007 from
terminals since the country’s four major ports handle 96%
of Mexicos foreign trade, according to The Seneca Group
BY TIER 1s IN MEXICO.
global automotive OEMs. The country should attract over
17 additional USD Billion in the years to come thanks to
LLC for the U.S. Trade and Development Agency Safety THE PROBLEM IS NOW
government incentives, favorable trade agreements and a
and visibility.
GETTING THE COMPONENTS
highly skilled yet cost competitive workforce.
Service consistency FOR THOSE TIER 1s”
Local regulation makes it difficult for international groups
According to forecasts the national automotive production
to operate their own assets in Mexico whereas local New logistics challenges also arise as Mexican plants
is likely to grow by an additional 50% and hit the five
companies have difficulties in bringing the scale and traditionally serving NAFTA and South American
million units’ milestone by the end of the decade.
experience required to support the accelerated growth of markets are looking for new destinations for their
TOP 10 & BOTTOM 10 VOLUME GROWTH MARKETS the industry. Efficient 3PL services such as managed outputs. In the 2010-15 term, Mexico’s LV exports to Asia
2015 VS 2022 VARIANCE (THOUSANDS) transportation are and will remain a must in a country grew ~250% whereas exports to Latin America grew by
where capacity is more and more difficult to secure. only ~20%. Global forwarding capacity in and out of
9,042
Mexico will most likely have to be quickly increased in
Cross Border order feed the local industry in components and serve
the world with its products.
8,0%
20.000
2,959 7,0%
2,874
In a context where challenges are only shadowed by
1,884 6,0%
1,448
1,340
1,172 798 743
15.000
5,0%
unprecedented prospects DHL Automotive focus for the
691 429
4,0% years to come will be to provide innovative integrated
10.000
3,0% solutions that will support the industry growth and
“Over the period 2016-2022 more capacity will be installed in Latin America alone than
in Western Europe and North America combined. Mexico will account for half of that 5.000 2,0%
ambitions to become global automotive powerhouse for
growth” source Autotech Forecasts 1,0%
all major automotive brands.
0 0,0%
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
AUTO Imports (USD) AUTO Exports (USD) Automotive Share of X-Border Trade
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SUSTAINABILITY
IS ALL ABOUT
WORKING SMARTER
WHY IS SUSTAINABILITY A MUST NOT A PLUS? HOW WE’RE WORKING ‘SMARTER’
By 2050, the world population will know how to tackle it. Like other DHL’S OBJECTIVES FOR
reach 9.5 billion people and the businesses, DHL Automotive is also CORPORATE AND AUTOMOTIVE NO. 1
number of cars on the road is highly concerned about carbon
SUSTAINABILITY STRATEGIES OPTIMIZING EXISTING RESOURCES
DHL Automotive aims to address
estimated to soar from 800 million emissions and is continuously working
and introduce many measures to Step number one is using available resources in a more
today to 2.5 billion, which may sound on innovative solutions to combat the
create a sustainable environment efficient way. Before investing in new technologies,
good for the world economy, but not problem, but the question is: at what
for all its customers. According to existing processes should be optimized and streamlined.
so much for environment conservation. cost? Companies are heavily investing
Manoella Wilbaut, Head of Global
According to the World Health in different technologies such as
Commercial Developments and The supply chain optimization solutions aim to analyze
Organization, around seven million electrification and renewable energies
Responsible for DHL Automotive and improve customers’ logistics setups to effectively meet
people died due to air pollution in to comply with increasingly strict
Sustainability Programs. their requirements and expectations. The Slotting
2012. Environmental concerns are governmental regulations – for
A strategy based on five pillars of Optimization Tool (Optislot Tool) provides a set of
increasing and governments are example, in 2015 the European Union
strength has been implemented methods used to determine the most efficient location for
implementing more and more wants an average fleet to reduce
each product within the warehouse in relation to its
regulations to prepare for this near carbon emissions to 130g/km and to
and specifically works around the
automotive sector. unique requirements, plus demand, movement and
NO. 2
future of 2050. “Everyone is concerned 95g/km by 2021 – but major
storage characteristics. Additionally, other systems such as
WORKING TOWARDS CLEANER SOLUTIONS
and everyone matters“, says Fathi compromises are being made along 1. Fleet management: alternative
the Go Green Carbon Dashboard monitors the company’s
Tlatli, President Global Sector the way. At DHL Automotive, the fuels and electric vehicles are One of the trends observed in the automotive sector is for
current emission flow and associated costs, allowing us to
Automotive, DHL Customer Solutions & focus is on approaching the matter of used through specific companies to refocus on their core activity. To ensure the
strike the most optimal balance between the two.
Innovation. “Having a sustainable sustainability by managing the triple automotive solutions best final product, they need trustworthy suppliers and
approach is no longer an option. It is bottom-line – preserving the 2. Suitable Logistics Facilities: service providers within their value chain.
our responsibility to work together environment, decreasing costs and optimized use of resources and
and develop a solution that will lead to increasing quality and productivity. renewable energy is The company is fully engaged in the process of reducing its
a better future for our society.” The company strongly believe that the highly promoted carbon footprint and was the first globally operating
former should not have to be 3. Network provisions: route logistics company to set itself a concrete CO2 efficiency
According to the study “A New Era of
achieved at the cost of the latter. management and modal shift target. It achieved this by pro actively developing cleaner
Sustainability” held by the UN in 2010,
solutions to increase solutions in order to minimize waste and maximize
93% of CEO’s see sustainability as The Group has devised a quality
effectiveness in transportation cost-effectiveness and quality of service.
important to their company’s future methodology that allows to ‘work
4. Additional Cost-Effective
success. But the reality is that where smarter’ to attain sustainability,
Solutions: specific sustainable Internally, Deutsche Post DHL is continuously promoting a
many seem to understand the and which also works in line with
end-to-end solutions for the better use of resources within its capacities and investing
importance of the issue, few really its objectives.
automotive customers in cleaner warehouses that will use alternative energies.
5. Standard Definition: working The group is also extending its green fleet. The climate-
“TO BE EFFICIENT AND VIABLE, SUSTAINABILITY SHOULD proactively with government friendly vehicles fleet, which is used for transportation, has
BE ENVISIONED BY TAKING INTO ACCOUNT THREE
organizations, research institutes increased to 11,00 in 2014, allowing frequent deliveries to
ELEMENTS SIMULTANEOUSLY: DECREASE THE COST,
INCREASE THE QUALITY AND REDUCE NUISANCE.
and NGOs to find better ways of dealerships without having an adverse affect on the
STRATEGIC DECISIONS BASED ON A BALANCED MIX OF reducing fuel emissions. environment or on service quality via the Parts Distribution
”
THESE VARIABLES SURELY RESULT WITH SUCCESS. Centers solution.
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NO. 3 “WORKING WITH DHL AUTOMOTIVE COMMUNITY
OFFERING SMARTER HAS BEEN KEY IN HELPING US ACHIEVE VOLVO – AN UPWARD VISION OF SUSTAINABILITY IN THE
END-TO-END SOLUTIONS OPERATIONAL EXCELLENCE IN TERMS OF AUTO INDUSTRY
DEVELOPING SMARTER SUSTAINABLE DHL and Volvo share the same philosophy: sustainability should be combined with
Smart end-to-end solution available SOLUTIONS, WHICH ARE COST-EFFECTIVE, NO. 4 quality and cost-effectiveness. In 2013, Deutsch Post DHL honored the company
with the Most Innovative Customer Solutions award.
across the value chain have been DO NOT COMPROMISE ON QUALITY SERVICE WORKING IN
developed. The objective is to efficiently AND ARE GREAT FOR THE ENVIRONMENT.” COLLABORATION Both companies have been working together on the global Maintenance on
manage processes from the beginning, Manoella Wilbaut, WITH PARTNERS Demand (MoDe) project that brings together 11 academic institutions and leading
right down to the manufacturing. Head of Global Commercial Developments and Responsible
for DHL Automotive Sustainability Programs AND INTERNAL TEAMS companies. With MoDe, the goal was to develop a commercially viable truck that
can identify where and when maintenance is required. It should also be able to
Most of the companies have
provide alerts when the maintenance is needed for which component. With early
goals to develop airtight sustainable
detection of sub-optimal engine operations, estimations show that it can prevent
SUSTAINABLE PACKAGING solutions for 2020 and 2050, but DHL
up to more than 50 tons of fuel
Sustainable / reusable packaging solutions for Inbound to Manufacturing and Aftermarket have Automotive collaborates with its
emissions per year and per vehicle.
been developed with the aim to decrease cash investment through a ‘pay per use’ system and partners and stakeholders to also
As parts are replaced only when
increase productivity by improving handling and storage processes. create solutions, which meet
needed, vehicle downtime is
‘today’s’ requirements. Companies
minimized without harming the
need to think pragmatically and
environment and drivers’ safety.
realize that providing sustainable
Productivity, cost-effectiveness,
MULTIMODAL solutions for today and tomorrow is
connectivity and environmental
With its large worldwide fleet network, DHL can offer a solution that combines multiple modes as important as thinking of the near
concerns are all optimally managed.
of transportation (air, ocean, road freight and rail). Proper selection of transport modes and and far future.
efficient prediction and planning of both worldwide and local deliveries not only allow us to
reduce transportation costs, but also to reduce carbon emissions. As the supply chain becomes more
and more complex, the risk of DHL FLEET – ACHIEVING OPERATIONAL EXCELLENCE
disruption has become even greater. The company is not only working on the logistics side, but also exploring new
BATTERY LOGISTICS Providers and customers have to join ways of improving sustainability through operations. By collaborating with the
That’s not all though. With a boom in electrification, OEMs also have to consider the logistics of forces in order to develop and DHL fleet department, DHL Automotive is able to provide sustainable vehicles for
Lithium batteries management. DHL can run this from start to finish – from transportation to implement the best suitable solution transportation that use alternative/duel fuel and also focus on electric vehicles
storage and to managing regulation requirements. These components are subject to tight for all parties. Collaboration is that have a positive impact on reducing the company’s carbon footprint.
legislative rules (for example: ADR, dangerous goods class 9, UN 3480) and require specific necessary to ensure success.
handling procedures such as temperature-control.
DEUTSCHE POST DHL GROUP CONFIRMED ON THE DOW JONES SUSTAINABILITY INDICES
Deutsche Post DHL Group has once again been recognized for its corporate sustainability leadership, confirming its place on the
leading Dow Jones Sustainability Indices DJSI World and DJSI Europe in 2015. Despite the continuous bar-raising in the assessment
“WE ARE WORKING WITH process, including increased requirements for the implementation of sustainability-minded business practices, Deutsche Post DHL
PARTNERS ACROSS THE Group saw rating improvements across several DJSI components.
VALUE CHAIN TO
“This confirmation by the world’s leading sustainability indices DJSI World and DJSI Europe underlines that we are on a good way
DEVELOP INTEGRATED of combining commercial success with responsible business activities,” said Deutsche Post DHL Group CEO Frank Appel. “An
SUSTAINABLE MOBILITY improved rating demonstrates that we have taken the right measures to increase our sustainability step by step.” The DJSI is
SOLUTIONS AT A GLOBAL among the world’s best known sustainability indices and assess the world’s leading companies on their sustainability performance
SCALE. IT IS NOT ONLY according to strict criteria.
ABOUT BEING STRONG
BUT ABOUT LEVERAGING Over the years, the DJSI has helped generate one of the world’s most comprehensive databases for financially-relevant
PROPERLY COLLECTIVE sustainability data, and provides an important decision-making tool for sustainability-minded investors. In addition to DJSI,
INTELLIGENCE.“
Deutsche Post DHL Group is currently represented in other important sustainability indices: In June 2015 for example, the Group
has been included again in the FTSE4Good index which evaluates the sustainability of companies according to criteria such as
Matthias Bohm environmental standards, climate change efforts, and labor standards.
DHL Vice President Category Management Ground Fleet
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DHL EXPRESS “GOING EVEN GREENER IN MEXICO”
DHL Express Mexico has reaffirmed its commitment to the environment by announcing plans to add 294 new and, more
energy-efficient vehicles to its ground fleet that will significantly reduce carbon dioxide emissions into the atmosphere.
The first batch of 159 eco-friendly Mercedes-Benz Sprinters arrived in mid-November, and the remaining vehicles joined
the updated ground fleet by the end of 2015.
The new fleet, representing an investment of more than $10 million, includes vehicles built with state-of-the-art energy
efficiency standards, allowing DHL Express Mexico to provide greater speed and quality of service to customers. The new
fleet will reduce carbon emissions by more than 266 tons in 2016 – a 20% decrease compared to 2015.
As part of the company’s efforts to provide its employees with the safest driving technology in fuel-efficient vehicles,
DHL Express Mexico has partnered with Mercedes-Benz for five consecutive years. Mercedes-Benz also provides vehicles
for DHL Express operations in Europe.
SAFER, HIGHER QUALITY SERVICE
The 2016 fleet acquired from Mercedes Benz consists highest quality service that has characterized our operations
of the new Sprinter diesel Euro IV and NGT Euro VI, with for 35 years in Mexico,” says Antonio Arranz, Country
BlueEFFICIENCY technology, and provides features that Manager of DHL Express Mexico.
increase operating safety, optimizes driving and reduces
These infrastructure investments for DHL Express Mexico
carbon emissions.
are part of the Group-wide GoGreen program. As part of the
The energy-efficiency as well as the driving and safety initiatives in Mexico, the company announced that some of
features of these Mercedes-Benz vehicles supported the these units will be powered by natural gas. This will make a
company’s decision to acquire this new fleet. “These positive contribution toward the efforts of Deutsche Post
investments reflect the commitment that the Express division DHL Group, which is committed to reducing its carbon
of Deutsche Post DHL Group has with the environment and
emissions of carbon dioxide worldwide by 30% by 2020.
with its partners to provide them with the most efficient and
safest vehicles for our couriers and to give our customers the Published 1/14/2016climate change efforts, and labor standards.
TO CONCLUDE
So, where the automotive sector is experiencing great change and has
become more innovative than ever, recent customer demands show
that the automotive industry does need to change its business model.
Previous strategies were focused on the product itself; now the
vehicle must be a part of the full mobility solution, which has to be
suitable for people and the transportation of goods, and in which
technology must play a big part.
Manoella Wilbaut
Head of Global DHL has proactively developed transport and logistics solutions to
Commercial Developments meet these needs. By collaborating with industry leaders, the
Head of Sustainability company aims to continuously improve its offer and create ‘smarter’
DHL Customer Solutions sustainability solutions.
& Innovation
manoella.wilbaut@dhl.com
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A new report outlines how sustainable mobility innovations have been sparked
by the Formula E Championship, the world’s first fully-electric racing series.
Many of us are drawn to urban living, attracted by the INFRASTRUCTURE
promise of greater opportunities, increased wealth and & BUSINESS MODELS
improved amenities. Indeed, by 2050, the United Nations
THE RACE TOWARDS estimates that 66% of the world’s population will live in
cities. The downside is that urban areas are negatively
Often technologies rely on infrastructure to be efficient.
Without geographically comprehensive charging
SUSTAINABLE
impacted by the mass movement of goods and people, networks, for example, the adoption of electric vehicles is
which means that finding environment-friendly likely to remain low. The impact of changing regulatory
sustainable mobility solutions has become increasingly and legislative frameworks must always be considered, as
urgent. Identifying and delivering short-term solutions is strong political initiatives have the power to significantly
MOBILITY
the most pressing challenge. change infrastructure and business models.
As this search intensifies, race-tracks in some of the world’s
biggest cities aren’t the most obvious place to look for
CHANGE MANAGEMENT
innovation inspiration; but the Formula E Championship,
& COMMUNICATION
the world’s first fully-electric racing series which began its
Effective communication is vital for achieving common
second season in Beijing in October 2015, has acted as a
understanding and overcoming resistance to change. The
catalyst for technology innovation in the automotive
transition to more sustainability requires a change of
industry. Entertainment may be at the heart of the
habits and mindset, because as good as a solution might
Formula E concept, but it is an event that is also keenly
be, it is worthless if not adopted. To achieve successful
aware of other ‘e’ elements — namely environmental and
communication, different channels must be used and
energy concerns.
account taken of how people retain information.
Messages about sustainability must always focus first on
As the Championship’s official logistics partner, DHL has
the particular sector to which they apply (logistics, for
published a report — called eStory: Undertaking the
example), but must also focus on the wider population
Mobility Challenge — which outlines the mobility
who may know very little about that sector.
innovations and green technology solutions that have
already spun-off from the Formula E event. The report
“Being able to innovate is a key success factor,” highlights
features case studies from 13 Formula E partners, including
the report’s author, Manoella Wilbaut, Head of Global
how UK-based Aquafuel Research has patented renewable
Commercial Developments & Sustainability, DHL Customer
energy generators which run on glycerine; the pioneering
Solutions & Innovation. “The report is part of a wider B2B
role of India’s Mahindra Racing in developing electric
program called eStory that aims to boost Innovation and
power-trains; how BMW has integrated a total life-cycle
Sustainable Mobility. We trust the real value comes from
approach into its production systems; and how the
the ability to connect people together and work in eco
Championships have accelerated the development of
systems. Let’s envision future in a pragmatic and
charging systems for e-vehicles. Clearly, these are examples
innovative manner!” — Ian Halstead
of ‘sustainable development fueled by innovation’.
To download the report, please visit:
The report also identifies three key levers to help such
http://www.dhl.com/estory
mobility innovation evolve:
TECHNOLOGY THE PERCENTAGE OF
GLOBAL CO2
Mobility has always been influenced by advances in EMISSIONS
technology. It’s crucial to devise intelligent transport PRODUCED BECAUSE
systems, driven by data management, to optimize the flow OF TRANSPORTATION
of people and goods through densely-populated urban
THAT USES FOSSIL
FUEL COMBUSTION
centers, but also to ensure that current solutions become
more efficient and use fewer resources.
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URBAN LOGISTICS
GO GREEN
science parks, the Swedish Energy Volvo Buses has also teamed with DHL Manoella Wilbaut, DHL Customer
Volvo Buses have some residents. However, there is a clear Sweden, where two variants of its
Agency, and regional government, set Express to create a new bus stop Solutions & Innovation, Head of
global trend for the evolution of latest buses are operating on route 55
ingenious solutions to up to develop, demonstrate and design, which would include DHL Global Commercial Developments, is
sustainable transport solutions based within the local public transport
evaluate the next generation of SwipBox, secure delivery locations for impressed by both the bus stop
make city logistics more on electromobility, via the use of system. Seven of the vehicles on the
sustainable public transport. “The customers of online retailers who concept and the Route 55 project.
either hybrid power trains, electric route are the 7900 electric hybrid, and
sustainable, including Volvo Group aims to be the world prefer the convenience of picking up “Through our City Mobility program
fuel cells or batteries. One of the early three are all-electric concepts,
leader in sustainable transport their orders from unattended we aim to develop sustainable
green vehicles – and an movers in this fledgling sector is Volvo featuring free Wi-Fi, power sockets to
solutions,” says Niklas Gustafsson, locations rather than accepting them solutions that reduce environmental
Buses, which has established a recharge phones and other mobile
innovative bus stop. Chief Sustainability Officer, Volvo at their home or workplace. These impact, increase productivity and
network of partnerships with major devices, and with the driver’s seat in a
Group. “A unique collaboration in “self-service locker stations” – which control or reduce costs, and Volvo
global cities. central position to increase capacity.
Academics, politicians and observers Gothenburg enables us to launch the can only be accessed using a Buses’ philosophy certainly dovetails
Although just 10.7 meters long, these
from both the public and private electric bus route here and remain a customer’s PIN – are available to with ours,” she says.
Last year, two Volvo 7900 electric vehicles can carry 86 passengers.
sector agree that urbanization will be leader in the development of future improve customer convenience. By
hybrids began operating in Hamburg,
the major catalyst for global change public transport.” adding new support services such as “It’s also good to see the local and
Germany, while a fleet of eight similar
in this century. The perception that
vehicles took to the roads of
INNOVATIVE self-service locker stations, bus stops regional authorities in Gothenburg
cities should be considered as dynamic
Stockholm, Sweden. The company has
APPROACH facilitate carbon-free mobility of are collaborating on ElectriCity,
and living ecosystems, within which people and goods. because as cities of the future
also received an order for 25 of its
people, their homes, workplaces and Volvo Buses, which expects full continue to evolve, the public sector
electric hybrid buses to operate in
vehicles will interconnect with the commercial production of its all- “DHL Express is the first to launch this will have a crucial role to play, not
Edinburgh, Scotland. At the same
providers of goods, services, energy electric buses to start in 2017, says entirely new delivery option in the simply on individual projects such as
time, Volvo Buses is collaborating with
and big data has also gained energy consumption is around 80% Swedish market and it is the rapidly Route 55, but in terms of both urban
other major cities to create
widespread support. lower than conventional vehicles. But growing e-commerce that creates the infrastructure and legislation.”
sustainable city traffic solutions based
there’s more to the Route 55 project need for more customer-friendly
on electromobility, including Curitiba,
Admittedly, there is less accord – for than technological advances. It’s one transport solutions,” says Ted Ian Halstead
Brazil, and Shanghai, China. THE REDUCTION IN CARBON
the moment – about how cities of the of many schemes devised and Söderholm, Managing Director, DHL Published: November 2015
EMISSIONS GENERATED BY
future will organize and operate their delivered by ElectriCity, a Express Sweden. It’s an innovative
However, its most ambitious project VOLVO’S ELECTRIC HYBRID
myriad functions to meet the fast- collaboration between Volvo Buses, approach to the “last mile” challenges
was launched in June of this year, in
changing requirements of their the local authority, city planners, two faced by all logistics providers.
Volvo’s home city of Gothenburg,
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That milestone was achieved back in 1976, and there have consumption and emissions of a four-cylinder engine
been many more since, including the intriguing concept of and the power and performance of a six or
a “pedestrian airbag,” which inflates to cover the eight-cylinder variant.
windscreen after a collision, reducing the potential impact
on people outside the vehicle. Adaptive cruise control, That combination of commitment to safety and
radar sensors offering 360-degree visibility of other technological innovation was critical when Volvo Cars
vehicles, forward collision warning and even cyclist decided to take on the Chinese market, following its
detection devices are other Volvo Cars innovations, acquisition by Zhejiang Geely Holding in 2010. Its new
introduced through its IntelliSafe program – the suite of owner immediately pledged to invest $11 billion over the
safety features found in its cars. The ultimate aim, says next five years to revitalize its model range and to expand
Eriksson, is to ensure that by 2020, no one traveling in a its global footprint with both increased sales and in-
new Volvo will ever be seriously injured or killed, a country production plants, in the world’s two largest auto
visionary approach that would most certainly have been markets, China and the United States. Volvo Cars had been
applauded by the company’s founders. The engineers in the latter market since the mid-1950s, but had never
tasked with designing Volvo Cars’ new generation of previously had the resources to set up a production plant.
VOLVO ROLLS OUT
Drive-E power trains have been setting equally challenging In China, the challenge was even greater, as other
goals: building units which deliver the low fuel premium brands were already established there.
NEW INNOVATION
was more important to them than Group. “We are always working to
As Volvo Cars continues its
simply propelling them forward as create very safe cars. We were the first
renaissance under Chinese quickly as possible. G
abrielsson and carmaker to install seat belts in front
Larson were also decades ahead of and rear seats, and we designed the
owners Geely, Kjell-Ake
their contemporaries in creating a first three-point seat belt in 1959.
Eriksson, Vice President brand which spoke directly and Making engines with very low emission
powerfully to the consumer. Most auto levels is also very important to us.
(Indirect Purchasing) at
industry pioneers emblazoned their We were the first carmaker to design
Volvo Cars, points out that names on their vehicles, their factories an effective system for ‘cleaning’
and their billboards. However, the two exhaust gases, by using a three-way
innovation has always
Swedish entrepreneurs preferred to catalytic convertor.”
been its driving force. create a brand which meant
something; so, from the Latin verb
Doing things differently has been a “volvere” (to roll), they created
way of corporate life for Volvo Cars, Volvo: I roll.
since its astute founders realized that
sheer speed was not a vehicle’s only Their first customers knew they were
selling point. buying a car which would roll
regardless of the weather or the
The cars manufactured by Assar uneven road surface; and the
Gabrielsson and Gustaf Larson were perception that Volvos are reliable and
designed to withstand both the rigors safe remains ingrained in the buying THE AMOUNT THAT VOLVO’S
of Sweden’s unforgiving climate and public’s collective psyche. It remains so OWNER, GEELY, IS INVESTING
TO CREATE NEW MODELS AND
its challenging road conditions. Even today. “Safety has become the central
DRIVE GLOBAL EXPANSION
before the first Volvo chugged off the element of our long-term heritage,”
production line in April 1927, says Kjell-Ake Eriksson, Vice President
protecting its occupants from harm (Indirect Purchasing) at Volvo Car
18 AUTOMOTIVE FLASH – DHL WHEELS IN MOTION AUTOMOTIVE FLASH – DHL WHEELS IN MOTION 19
HIGH DEMAND
However, the huge Geely investment has paid off 100,000 vehicles annually, and 2014 US sales of just 56,000,
spectacularly. Volvo Cars now has three production sites in the scale of the company’s determination to regain market
China. The first is in the Chengdu Economic and share and transform its presence in the country under
Technological Development Zone in Southwest China; the a new leadership team is evident.
second is located in Daqing, northeast China, where its
best-selling XC60 is assembled for the local market; and Even as those ambitious proposals were being announced,
the third is an engine plant in Zhangjiakou, northwest of Volvo Cars already had much to celebrate, as its all-new
Beijing, which supplies engines to Chengdu and Daqing. SUV, the XC90, was launched to acclaim from dealers and
All sites have the same specification for technology, safety drivers alike. “The demand was fantastic, higher than our
and the environment as Volvo Cars’ earlier plants in forecasts,” admits Eriksson. “We had 20,000 orders before
Sweden and Belgium. “Chinese customers do not have the first one had reached the dealerships. Today, more
lower expectations than Europeans,” said Lars Danielson, than 65,000 XC90s have been sold. Such success brings its
Senior Vice President of Volvo Cars, China Operations, and own challenges, of course, and as we establish our global
CEO of Volvo Car China at the start of production of the footprint, the challenge is to be consistent with regard to
XC60 in November of last year. “They expect premium quality. We are always monitoring our supply chains to
quality products. Customers also have plenty of choice in ensure that optimum quality is being achieved.”
the highly competitive market in China. That is why we
make sure to deliver high-quality Volvo cars out of “Equally though, we always need to have strong
Chengdu that are at least as good as the cars we build predictions about the potential impact of external
in our European plants.” influences, which is very challenging at the moment. The
future strength of China’s economy isn’t clear, Europe is
The five year investment program has also enabled Volvo also more or less flat, as is the USA, and the absence of
Cars to unveil plans for its first US plant. Around US$500 economic growth must influence demand. However, we
million will now be invested in the factory, based just still believe that our target of selling 800,000 vehicles in
outside Charleston, South Carolina, and production is the medium term is achievable, because of the quality of
expected to begin in 2018. With a potential capacity of our products and our relentless focus on innovation.”
BEING DIFFERENT
The Swedish automaker certainly took a radical approach in-car app. Such innovations would require a next-gen
to marketing this year, attending the Auto Shanghai road infrastructure to operate, but the trials underline
exhibition in April, but not exhibiting in Frankfurt in the company’s desire to become a pioneer of
September. “We are one of the world’s smallest carmakers, “connected” vehicles.
so we cannot simply follow the mainstream,” says Eriksson.
Eriksson is naturally enjoying Volvo Cars’ renaissance under
Volvo Cars is also focusing on innovations via the Geely, even if the demands of working life in Gothenburg,
“connected car” concept, and used the world’s largest Sweden, mean his alarm is set for 5:15 a.m. every day.
mobile technology exhibition, in Barcelona this spring, to “I have always been motivated by enthusiasm,” he says.
outline its plans. A pilot fleet of 1,000 cars is being trialled “I have a very good team around me, and there is a
in Sweden and Norway, to see how “road status” data powerful momentum in the company because we are
about traffic flows, journey times, accidents and other going somewhere we have never been before. The new
crucial information can be collected and then shared with plant in Charleston is very much part of that journey, and I
other road users via the cloud. Volvo Cars’ software think I’m a very lucky person to be involved.”
engineers have even devised a “slippery road alert,” so its
vehicles can automatically warn both their driver and Ian Halstead
other drivers, of challenging driving conditions via an Published: November 2015, Photos: Ola Torkelsson; PR20 AUTOMOTIVE FLASH – DHL WHEELS IN MOTION AUTOMOTIVE FLASH – DHL WHEELS IN MOTION 21
ASSESS LOGISTICS IMPLICATIONS
EARLY IN THE LAUNCH PROCESS
Because strategic and long-term logistics decisions are to
be taken at the initial stages, the early involvement of the
logistics service provider is definitely beneficial. The future
supply chain design decisions are especially critical since
the supply chain will remain mostly unchanged during the
whole product lifecycle. DHL’s expertise in risk assessment
and supply chain optimization and performance allows its
customers to assess the relevance of every option.
The transportation of the prototype vehicle and parts is
also a major challenge of the product development phase.
DHL has developed safe and confidential packaging
solutions dedicated to creating diverse products ranging
from high tech components to high value concept cars.
SOME LOGISTICS SOLUTIONS MATCHING THE PRODUCT
LAUNCH PROCESS REQUIREMENTS
DESIGN / ENGINEERING PRODUCTION SALES
READINESS READINESS
-36 / -6 MONTHS -6 / -3 MONTHS D-DAY
Feasibility Mules
New study Freeze Design Freeze Production Production Ordering After
building
concept & & validation & validation ramp-up Release / sales
&
vision Development Prototype & Production testing & Mass campaigns
Component
partner tooling Testing tooling Communication production
design
selection
THE CAR’S
Control Tower / Visibility
Risk Management
STAR Secure / confidential packaging Prototype shipping
Supply Chain consultancy / End to End Supply Chain cost evaluation
Industrial projects
The engine of the automotive industry is new vehicle launches, which can take three
years and cost more than $500 million. In an increasingly global business, the resulting
Trade Fair Management
supply chains and promotional efforts often stretch around the world.
Inbound to Manufacturing flows management
DHL AS A RELIABLE PARTNER FOR PRODUCT LAUNCHES Just in Time / Just In Sequence
Inplant Logistics / Line feeding
Increased global competition in the automotive industry makes new product launches more frequent and time
constrained than ever. In the meantime, technical constraints resulting from both local adaptation and product Complete Knocked Down Kits Packing & Transportation
standardization trends have a strong impact on the process complexity and lead to tremendous development costs.
Aftermarket distribution
Product launches are then a critical subject of interest for both OEMs and component manufacturers and Recall management
DHL is accompanying its customers in the whole process – right from idea generation to aftersales events.22 AUTOMOTIVE FLASH – DHL WHEELS IN MOTION AUTOMOTIVE FLASH – DHL WHEELS IN MOTION 23
THE TRICKY BUSINESS OF RECALLS
Few things make automotive executives more nervous In order to minimize the negative impact of recalls following
than recalls. After designing a vehicle, planning a launch a vehicle launch, DHL has developed a comprehensive
and selling millions of cars, companies sometimes discover solution, which includes the following features:
a technical problem in the model. In 2014 the automotive
industry set a record with around 64 Million cars recalled, Recall planning and preparation thanks to simulation
a figure that almost tripled compared to 2013. tools, customer mailing systems and online
portals set-ups
Recalls put customer-manufacturer relationships at risk.
Recall smooth execution and monitoring (end-to-end
The customer’s expectations are not met and there are also
order management), track & trace and IT connectivity
practical concerns to be considered. If a customer accepts
to bring his/her car back to the dealer for a recall, he/she Key Performance Indicators monitoring for continuous
will not want appreciate being held up there for too long. improvement purposes
ReActive REQUEST SETUP EXECUTION IMPROVE
Elapse
up to 3 months typically 3 - 6 months 2 weeks
Time
up to 4 weeks typically 3 - 6 months 2 weeks
ProActive REQUEST SETUP EXECUTION IMPROVE RECALL ALLIANCE BENEFITS
Vastly improved timeline in terms of readiness
The availability of parts in the aftermarket channels must ReActive = DHL Recall ACTION Much better preparedness
HEDGE THE RISKS AND COSTS OF LAUNCH DELAYS Customized supply chain Recall plan
be ensured from day one and should then be prepared Improved end to end visibility and control
ProActive = DHL Recall ALLIANCE
prior to the launch. DHL’s Aftermarket solution is based on Improved quality process
The integration of a new model into an existing production Reduced organizational pressure
flexibility and cost-effectiveness, allowing for the smooth
facility often impacts the plants productivity and leads to Greater control of costs
introduction of new components in the aftermarket Better understanding of key cost drivers
delays that negatively impact the future product’s release
distribution network. Minimized disruption to normal business
date. Coordination of inbound flows is critical to ensure RESILIENCE360
the release date of emerging mega-platforms.
NEW PRODUCT LAUNCH: TIER ONE AND OEMS
Officially launched in 2014, the DHL Resilience360 solution set is especially relevant in the context of new product launches.
DHL’s advanced Inbound to Manufacturing Solutions It is a unique supply chain risk management solution, which can turn disruption into competitive advantage. Highly
The New Product Launch solution set-up is adaptable to
ensure a reliable but flexible supply chain that will support customizable, it comprises two sophisticated products: the Resilience360 Risk Assessment, a continuous assessment study, and
the Tier One and OEMs requirement. In case of a new
the new model production ramp-up and frequent the software-based Resilience360 Incident Monitoring solution – both designed to improve the resilience of your supply chain.
vehicle launch, Tier One suppliers are usually involved in
planning adjustments. DHL’s visibility and risk monitoring
the early stages. For a new component launch, Tiers Two
solutions ensure the reactivity of the inbound set-up and
and Three are also involved early. DHL RESILIENCE360 RISK ASSESSMENT
its ability to implement efficient contingency plans.
Illicit Tr
Earth
IT
Su
ade
In p
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d
fr ply
For both cases, component and car manufacturers must Mapping and visualization of risks for the entire SC:
in
as C
k
PRODUCT VISIBILITY AND AFTERSALES
W
tr ha
uc i
tu n
efficiently coordinate the relationship between multiple Transparency on exposure and vulnerability in over 20 risk categories Ca re
al Fir
e
SERVICE EFFICIENCY: rgo
Th
eft
at
ion
N
Di at
s
stakeholders. DHL offers various solutions to tackle this. Rates resiliency and ensures coverage of back-up plans
ur ters
THE MAIN FACTORS IMPACTING BRAND LOYALTY
er
al
as
Supplier
Op
Water
Identifies risk hotspots and recommends suitable mitigations Failure
Provides evaluation of sourcing scenarios
S o ci
tical
Moving high value showcase cars from auto shows to press
rd s
poli
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li
o
Fai ty
za
Risk ol
Ha
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events with large amounts of marketing material is also itic a lure
DHL RESILIENCE360 RISK MONITORING
l
part of the new product launch process. DHL’s Trade Fair &
ie s
fic m
y
nc
Ef sto
Cu
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Fir
Events solutions provide the logistics support required for
es
us
Detects and mitigates risks to avoid supply chain disruptions:
Strik
tri
al
such occasions.
Tracks relevant risk incidents with potential impact on the end-to-end supply chain
Allows you to plan and book emergency/alternative shipments
The release date marks the end of the product launch
Monitors the entire supply base
journey. It is also the beginning of the product lifecycle.24 AUTOMOTIVE FLASH – DHL WHEELS IN MOTION AUTOMOTIVE FLASH – DHL WHEELS IN MOTION 25
TAG SERVICES
DECOUPLING MARKETING
SUPPLY CHAIN
SPEED
TO MARKET
MA
Traditionally, advertising agencies do three things for TAG is the leading global brand services company and 2. Cost Effectiveness: Increasing cost efficiency through SPEED
on
RK
TO MARKET
ti
customers: come up with ideas, produce them and place largest procurer of print, sourcing the best marketing process & product improvement and strategic
ETI
on ep
MA
NG
ptionc
them. Media buying has separated a while ago, but now materials at the best price. It is a standalone business procurement conditions.
RK
SU
nce C
ETI
we are looking at a separation between creation and division of Williams Lea, a DPDHL subsidiary since 2006. It
PP
Leverage TAG’s buying power and centralized
NG
LY
production, also known as decoupling. TAG is a major helps brands make marketing more consistent and bring
C
Co
SU
production approach to drive costs down (20%-30%
HA
global company born form this schism. Clients are better value by delivering efficient & creative marketing
PP
ion
IN
savings on printing materials can be expected)
LY
ut
engaging “decoupling companies” directly to produce, that inspires the audience. TAG’s solutions are tailored to
C
ion ec
HA
ut Ex
distribute, translate and transcreate global campaigns the customers around three pillars, which happen to be 3. Speed to Market: Improving the speed at which
IN
for brands. Beyond the evident cost saving associated to very relevant for the automotive industry: campaigns can be delivered worldwide. BRAND COST
CONTROL EFFECTIVENESS
ec
that concept, decoupling increases customers’ ability to
Ex
Auto players are accelerating their new model
effectively customize their brand message around the 1. Brand Control: Ensuring brand consistency across all BRAND COST
launches and product lifecycles are lower which CONTROL EFFECTIVENESS
world and gives them more freedom to the creative part, media through standardized global quality.
means there will be an increase in marketing
as they are less dependent on creative agencies.
Most of the time marketing has a decentralized campaigns on a global scale
structure (often a regional marketing setup or even
a local setup in some parts of the world), meaning
Full web development Execution versus
some of the work is duplicated and the different Mobile & tablet integration AD-HOC establishing creative
SPEED Email & campaign management DIGITAL
messages sent can be inconsistent
TO MARKET DESIGN
MA
Full web development Execution versus
Automotive players are increasingly pushing to grow
on
RK
Mobile & tablet integration AD-HOC establishing creative
pti
ETI
in emerging markets. There is a need for: Email & campaign management BROAD- DIGITAL
DESIGN CREATIVE Simple pack shoots
nce
NG
Post-production CAST STUDIO Full shoot production services
Co
SU
n Timely and cost effective deliveries of International versioning Computer Generated Imagery (CGI)
PP
marketing material Global distribution Services
LY
BROAD- CREATIVE
CH
Simple pack shoots
CAST TRANS-STUDIO
A
n Printing and transportation capabilities in these Post-production Full shoot production services
ion
IN
PRINT
International versioning CREATION Computer Generated Imagery (CGI)
markets (TAG is the world’s largest print
ut
Global distribution PREServices
MEDIA
ec
World’s largest independent print procurer International campaign adaption
procurer thanks to a unique supplier network) & FORMAT
Ex
Marketing print, POS, packaging, etc.
Unique supplier network ADAPTION
BRAND COST
n Adapting to local culture/language in order to PRINT TRANS-
CONTROL EFFECTIVENESS
CREATION
deliver the right message PRE MEDIA
World’s largest independent print procurer International campaign adaption
Marketing print, POS, packaging, etc. Pre-press & FORMAT
Unique supplier network ADAPTION colour proof
Final artwork, lithography,
Pre-press26 AUTOMOTIVE FLASH – DHL WHEELS IN MOTION AUTOMOTIVE FLASH – DHL WHEELS IN MOTION 27
A complete- or semi-knockdown operation (SKD/CKD) times bigger than on parts. Other countries have a more
consists in consolidating parts/modules in one country and protectionist approach aiming at developing the local
shipping them in kits ready for assembly in another. It is a automotive industry and leveraging regional trade
quick and relevant solution to bootstrap production in a agreements. In that case KD operations are relevant only if
new market while lowering financial risks. Indeed, this combined to high local sourcing in order to benefit from
set-up requires lower investment and enhances flexibility local incentives. The size of the local automotive industry
from a production standpoint. and the infrastructure conditions are also part of the
equation. Indeed countries without recognized supplier
KNOCK-DOWN SOLUTIONS
The interest of such a solution varies from one market to industry and poor infrastructure are good candidates for
the other. The gap between the import tax level on CKD shipments. In any case, the KD strategy can also be
CAPTURING GROWTH IN
finished vehicles and automotive parts is the main factor used to test a new market before investing in a more
influencing towards a KD strategy. In certain countries, the durable manner if successful.
import duty rate on finished vehicles can be as high as ten
EMERGING MARKETS MAIN OEM CHALLENGES MAIN CKD BENEFITS
Door to door time definite express
Gain market share in Emerging countries movement for engineering approval
Relevant solution to bootstrap production in
Minimize Capital expenditure a new market/region while lowering risks
OEMs now operate on a global level and are increasingly AUTOMOTIVE 1) SALES
involved in penetrating emerging markets, which will be (new plants/WH)
112bn
the growth’s fuel for the next ten years. Capturing this 79bn Lower investment for assembly plants
growth in the current increasingly competitive environment 57bn
Optimixe Supply Chain Costs
is a significant challenge for OEMs. On the one hand, they Reduce import taxes and often receive
need to establish themselves and grow fast locally but on tax benefits for creating local jobs
2002 2012e 2022e
the other, they have to manage efficiently global
operations. On top of that, accelerated model renewals
Rest of the World BRIC USA/Japan EU27 Gain flexibility to avoid overcapacity issues Load cube and product
characterization flexibility
and global launches add complexity to the picture.
DHL provides a wide array of services in the whole CKD process and uses a modular implementation approach that covers
As globalized as the world might be borders are undoubtedly still there, illustrated by uneven geopolitical and economic
the whole project life cycle from planning to operational management. To offer this fully integrated end-to-end solution,
situations, different regulatory frameworks and obviously different business cultures. Understanding this diversity is key
DHL combines its divisions’ respective core business areas in a smart manner: milk-run collection and consolidation in
in the elaboration of a relevant localization strategy. In this context, knock-down solutions are a good option to consider
origin country, multi-modal solutions and customs clearance for global transportation and assembly operations in
and their relevance depends on factors inherent to the considered market as well as the company’s existing operations.
destination country. On top of that, DHL has the expertise to develop CKD-customized packaging solutions matching
specific customer requirements and maximizing utilization of the containers.
TIER ONE CBU
COMPLETELY BUILT UNITS
FINISHED VEHICLE SHIPPED PARTS GATHERING PACKAGING DEVELOPMENT
PARTSF OEM FULL INISHED VEHICLES FINISHED VEHICLES I2M PACKAGING
ASSEMBLY PLANE OVERSEAS FOR DIRECT SALE TIER ONE & OPTIMISATION
TIER ONE PARTS
CKD LINE FEEDING KITS PACKING
COMPLETE CAR KITS
PARTS/MODULES TIER ONE
TIER ONE
TIER ONE CKD/SKD OEM RECEIVING PLANT WAREHOUSE MANAGEMENT SYSTEMS
COMPLETE/SEMI KNOCK DOWN LOCAL KITS ASSEMBLY
MODULES KIT KD KITS OEM RECEIVING FINISHED VEHICLES KIT FOR OVERSEAS ASSEMBLY (POSSIBLY
CONSOLIDATION PLANT COMPLETED WITH LOCAL SOURCING)
FACILITY
CUSTOM CLEARANCE RECEIVING PROCESS
TIER ONE
FINISHED VEHICLES28 AUTOMOTIVE FLASH – DHL WHEELS IN MOTION AUTOMOTIVE FLASH – DHL WHEELS IN MOTION 29
DHL AUTOMOTIVE
AFTERMARKET
SERVICES
Cost effective solutions for service level optimization in the Aftermarket.
Aftermarket parts and services sales are nowadays accountable for around 35% AFTERMARKET EMERGENCY SOLUTIONS AND PACKAGING
of the total automotive OEMs revenue earned globally. Beyond its network of Parts Distribution Centers, DHL provides additional aftermarket solutions to manage
unexpected events and optimize the packaging strategy.
This part of the business delivers local customers’ preferences. For OEMs, loyalty. In demanding markets, DHL
higher margins than the sale of new the main goal of performing well on makes multiple just in time deliveries to DHL AFTERMARKET PACKAGING SOLUTIONS
vehicles and is therefore becoming the aftermarket is to increase customer end customer on a daily basis. A large DEALERS / END CUSTOMERS
AFTERMARKET
more and more strategic. The number loyalty and enhance repurchasing by network of local distribution centers IN NIGHT DIRECT TO DEALER SPECIFIC
of vehicles in operations is growing: offering the highest level of services. operates up to four milk runs a day to DELIVERIES (PUSHED PARTS) PACKAGING
SOLUTIONS
product quality is better and vehicles Moreover, this part of the business fulfill dealer orders on a pull mode.
DISTRIBUTION CENTERS
are aging. By 2020, 1.32 billion cars represents 35% of their overall revenue.
MICRO LOCAL
In some other markets, service and MEGA LOCAL
are forecast to be on the roads. For components manufacturers, the DISTRIBUTION
Aftermarket service satisfaction is a key parts affordability is key to retain CENTERS
aftermarket is even more critical as
contributor towards brand and dealer and capture market share. DHL then
it represents 50% of the revenue. PARTS
loyalty. Consequently, optimization of focuses on the optimization of in- PRODUCTION
Pascal Kemps, DHL Head of Passenger night replenishment for warehouses PLANT
aftermarket set-ups is becoming a (OE/TIER 1)
major challenge for automotive players. Vehicles says: “We are only at the start and dealers in order to limit the cost
EMERGENCY SOLUTIONS
of the change cycle. The Automotive of just-in-time deliveries.
• DIRECT TO DEALER
aftermarket will remain vibrant for
WORLDWIDE the next years as e-retailing has Thanks to the monitoring of the • VEHICLE OFF ROAD
CUSTOMERS WITH grown-up. The fast will beat the big.” aftermarket flows and stocks, DHL set- DHL Aftermarket Packaging Solutions aim to reduce the cost of disposable packaging. This modular and
DIFFERENT ups are flexible and can adapt to reusable packaging has been developed to minimize our customers’ environmental footprint while achieving
EXPECTATIONS THE RIGHT SET-UP FOR
changing requirements. This has been
implemented for major industry leaders
cost savings thanks to load cube optimization.
Customers’ needs vary from one THE RIGHT CUSTOMERS and fits with OEMs or Component DIRECT TO DEALER
country to another. Drivers in mature manufacturers’ requirements.
The common spare parts delivery Direct to dealer models
markets tend to keep their vehicle
system often uses a Parts Shay Dorgan, DHL CSI Vice President drastically reduce
longer; in emerging countries, many
Distribution Center in which large in charge of the implementation of distribution delays by
of them are only buying their first
inventory levels of components are this solution says: “By implementing DISTRIBUTION AIR & MAIN DOMESTIC DESTINATION directly shipping emergency
car. With such differences regarding CENTER: SEA FREIGHT WAREHOUSE TRANSPORTATION COUNTRY
available. The DHL Industry solution this set-up, Dealer inventories can be ORIGIN COUNTRY freight from the production
the lifecycle of the auto market,
is based on an organized network of reduced up to 70% in terms of the SHIPPER FREIGHT FORWARDER SHIPPER COURIER CONSUMER plant/main warehouse to
customers’ expectations in terms of
small rapid response warehouses number of parts and up to 95% in the final customers. This
aftermarket services are very different.
strategically located closer to cities terms of inventory value (dependent solution provides full
Automotive players willing to counter to enable spare parts delivery to on OEM and service specification). visibility on emergency
the rise of independent aftermarket dealerships in a timely manner. Our automotive customers can offer DISTRIBUTION CENTER: DIRECT DISTRIBUTION BY DHL EXPRESS DESTINATION COUNTRY
shipments and allows to
actors need to implement flexible Aftermarket service satisfaction is the highest level of services without ORIGIN COUNTRY quickly complete Vehicles
aftermarket set-ups that better match essential to brand and dealership compromising their cost-effectiveness.” SHIPPER DHL CONSUMER Off Road (VOR) orders.You can also read
