Context
DHL and its supply chain division Exel perform spare parts logistics for computing giant Oracle throughout the world. Replacement server parts and new hardware were being shipped to a large technician network (tech) for next-day repair services while used and defective parts were returned from the field to its repair distribution centres (DCs). Thousands of shipments went back and forth every week.
Outbound shipments always had to be delivered using next-day before-noon service at the lowest cost available while returns had to travel at the slowest and thus lowest overall cost. Rate programs were in place with various carriers, but tighter and more consistent decision-making and logic needed to be applied to ensure the right decision was being made on every shipment.
Challenges Encountered
Multiple couriers and returns programs, most with different pricing, made choosing the lowest price option difficult for shippers. Operationally the work was getting done, but at a higher cost than necessary because consistent shipping logic and methods were not in place.
Strategies Employed
A 2Ship solution was installed at DHL/Exel to enable it to efficiently, accurately and consistently control and monitor all inbound and outbound shipments for every one of Oracle’s on-site technician locations and DCs.
Outcome
By installing 2Ship with pre-loaded and regularly updated courier rates and policies, shippers were always able to find the lowest overall shipping rates. DHL / Exel was able to refine the inbound and outbound repair parts logistics process and offer Oracle significant savings of at least 10% year after year.