DHL wins contract with CLAAS for spare parts distribution to the U.S. and Canada02/16/2006, 12:00 AM CET
DHL Global Forwarding has won a new contract with CLAAS, one of the world's largest manufacturers of agricultural machinery, for the supply of spare parts to the US and Canadian markets with an expected order volume of 650 tons of airfreight per year.
Established in 1913, CLAAS is a family business employing 8,000 people. The company operates seven manufacturing sites in Germany and abroad. Its machines are used worldwide - harvesting wheat in France and the Ukraine, processing straw and foliage in Chile, the US and Canada, cutting sugar cane in Zimbabwe and Brazil and can even be seen at work in the rice fields of India and Taiwan.
DHL Global Forwarding, the combination of Exel's freight management business and DHL Danzas Air & Ocean, has developed a model for the highly critical supply of spare parts for these huge machines to the US and Canada, two of CLAAS' most important markets worldwide for agricultural technology and the home market of CLAAS's competitors. Spare-parts shipments ranging in weight from 1 kg to 10-ton lots have to arrive promptly with CLAAS' American customers in a window of 72-hours.
Every day DHL Global Forwarding co-ordinates the transport of spare parts from the CLAAS logistics centres in Harsewinkel and Hamm to Dusseldorf airport in Germany. The Company also manages CLAAS' air shipment to North America, customs brokerage and final delivery to the end customer.
The organization's IT team has also developed a customised track and trace solution so that all supply chain partners have a complete overview of the transport during the whole process.
"We were well aware that CLAAS was taking a big risk in searching a new partner for its entire parts logistics. The consequences of a delivery not arriving on time on the American market with their short harvest season would have been enormous," said Andreas Hadamer of DHL, about the contract. "We are delighted that CLAAS has placed their full confidence in us."
"It really is a sensitive supply chain because we have to defend ourselves daily against our American competitors. But, thanks to DHL Global Forwarding, we can succeed in delivering spare parts to the US on time," says Bülent Ileri, Head of Transport Logistics for CLAAS. "By using the right supply chain mix, our new partner has not only been able to provide us with a professional transport service, but has also managed to reduce our costs."
DHL Global Forwarding is the combined freight management business of DDAO and Exel. It formerly operated under the brand name DHL Danzas Air & Ocean . DHL's parent company, Deutsche Post World Net, acquired Exel in 2005.