DHL wins Ford mandate
DHL to Manage Warehousing and Distribution of Ford Spare Parts and Accessories in IndonesiaBonn, 05/25/2005, 11:30 AM CEST
DHL, the world's leading express and logistics company, has been awarded a contract by Ford Motor Indonesia to manage the auto manufacturer's nationwide warehousing and distribution of automotive spare parts and accessories.
The contract, which is for an initial period of two years, is expected to significantly enhance Ford Motor Indonesia's ability to provide quality spare parts services to its customers through its network of 15 Ford Superstores across the country. Additionally, Ford Motor expects to realize considerable improvements in productivity, efficiency and costs savings utilizing DHL's proven supply chain expertise and resources.
Ford Motor's supply chain requirements are managed by DHL Global Customer Solutions (GCS). GCS is unique in providing globally coordinated logistics solutions for DHL's top global customers across all modes of transport, globally from source to shelf. Through GCS, customers have access to the full range of DHL express, freight and logistics services in addition to account management, supply chain consultancy, implementation and performance management undertaken by industry-specific GCS teams.
The initial stage of the contract will involve a comprehensive review and overhaul of the existing warehousing and distribution operations at Ford Motor as well as an evaluation of the processes and relationships with third party suppliers and OEM (Original Equipment Manufacturer) vendors.
DHL will also assume responsibility for the management of Ford Motor's warehousing and distribution operation from its 2,000 square meter warehouse located in Sunter, North Jakarta. Based on a model of DHL's Strategic Parts Center (SPC), which offers inventory management, storage and urgent delivery services, the warehouse will be managed by a dedicated team of 20 DHL staff. SPCs are a key component of DHL's express delivery network in Indonesia and offers 4-hour order-to-delivery times.
Said Will Angove, President Director of Ford Motors Indonesia: "In our business, being able to provide the best level of after sales customer service is as important as having the best products. Everyday, thousands of our customers who use Ford vehicles rely on us to ensure that replacement parts are there for them no matter where they are in Indonesia. And when you have four extremely popular models like our Ranger, Lynx, Escape and Everest, the challenge of maintaining and delivering the thousands of spare parts needed becomes very complex."
"The benefits of having DHL manage our entire warehousing, transportation and distribution operations were far too attractive to pass up. By outsourcing the supply chain component of our business to experts like DHL, our management resources can be freed up and deployed in our areas of core competency, which is in automotive marketing. DHL was very responsive and customized a warehousing and distribution solution that allows Ford Motors Indonesia to be a more competitive player within our industry. Additionally, working with DHL made good business sense because they can provide one stop solutions from warehousing, air and ocean transport, inventory, and staff management," continued Mr Angove.
"This new contract from Ford, one of DHL's top global customers, is an endorsement of GCS' value proposition," said Paul Coutts, Senior Vice President, Global Customer Solutions, DHL Asia Pacific. "Through GCS, Ford has access to the full range of DHL's industry-specific supply chain solutions from a single source across all markets in which they have a presence."
Aside from Indonesia, GCS also oversees Ford's supply chain activities in Australia, China, Brazil, Canada, Sweden, Poland and the United States comprising a mix of consolidation, importation, warehousing and distribution, international express as well as managing the company's Parts Distribution Centres (PDC).
"We are delighted to be working with Ford Motor Indonesia. Globally, DHL has an unrivalled depth and breadth of experience in developing total logistics solutions for the automotive industry which can be brought to bear on Ford's unique needs in Indonesia," added Mr Coutts. "We are particularly happy with this opportunity to assist Ford in streamlining their warehousing operation, improve their distribution capability, enhance productivity and reduce logistics-related costs."