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April 06, 2016 6462 Views

DHL is a Logistics Service Provider operating worldwide and is specialized in warehousing and distribution solutions, Value Added Services (VAS) and transportation.

One of the multi-client warehouses of DHL Exel Supply Chain launched an innovation program, focusing on cost reduction as well as on service improvement.

Groenewout was asked to support DHL’s project team. By analyzing system data and conducting several interviews first the current situation for all customer contracts was surveyed. Three innovation options were proposed to investigate further.

With different points of view, in several workshops the following three alternatives were proposed:

  • Relocate some customer operations within the building to minimize internal transports
  • Standardization of processes and centralizing customer contracts in three zones (operator flexibility)
  • Mechanized solution with conveying techniques and a central packing area.

It was decided to implement alternative 2. Benefits:

  • Employee commitment due to more tasks for more customers
  • Economies of scale in labor (interchangeability) and equipment (shared use)
  • Increased transparency (no islands in the warehouse)
  • Optimized grouping and stocking of alike products.