Download Manufacturer of medium, heavy duty and specialized trucks

Case Study
Automotive
Cross-border solution
Manufacturer of medium, heavy-duty and
specialized trucks optimizes cross-border
supply chain and bilingual visibility
Challenge
Part of the manufacturing and sourcing strategy for North America’s leading manufacturer of medium, heavy-duty diesel and specialized chassis trucks was to grow its
truck assembly operations in Mexico, including the launch of a new plant south of
the border. To optimize its cross-border supply chain, the company turned to DHL,
which was already successfully managing a U.S. cross-dock network as well as customs
brokerage. It proved a natural next step for the customer to engage DHL to provide a
comprehensive cross-border solution delivering greater efficiency, reliability and visibility.
Optimize shipments within and between countries
THE CHALLENGE
While planning the opening of the new assembly plant in Mexico, the manufacturer
reexamined its cross-border supply chain in order to optimize its transportation costs,
lead time and reliability. Anticipating significant additional production parts volume
heading to the new plant, the customer wanted to realize all possible efficiencies.
This would mean developing a solution that integrated the existing cross-dock
network with the company’s cross-border activities.
Southbound shipments into Mexico included components for two truck assembly
plants, an engine remanufacturing plant, and an aftermarket parts distribution center.
Northbound, the customer needed to manage increasing numbers of Mexican suppliers,
returnable racks and finished truck imports back to the United States.
The company also sought to reduce the number of partners it worked with on each
side of the border. These partners operated independently, effectively limiting systems
integration and coordination at the border. There was little visibility at customs clearance,
and shipments were not easily traceable to either the shipper or destination location.
Finally, a cross-border supply chain is a complex entity that requires special expertise
to manage reliably. Incorrectly completing customs paperwork, for instance, can result
in delays and unplanned costs. “The truck manufacturer needed a supply chain
partner that understood the complexities of cross-border processes and could ensure
the flawless implementation and execution required for the company’s manufacturing
and sourcing strategy to succeed,” explained Ted Nikolai, DHL’s president for the
automotive industry. “They knew our track record, and the spectrum of capabilities
offered throughout our organization made us the perfect cross-border partner.”
Integrate existing U.S. cross-docks with
cross-border activities
Ensure cross-border reliability and visibility
Reduce number of supply chain partners
Solution
End-to-end DHL solution for instant, complete
cross-border infrastructure
Comprehensive shipment consolidation/
deconsolidation program, integrated to a common
North American network
Streamlined, expert brokerage services at the border
One bilingual IT system
Benefits Summary
Transportation costs
Trailer utilization
Border crossing times
Number of supply chain partners
Overall solution cost
EXCELLENCE. SIMPLY DELIVERED.
Case Study
Automotive
“By partnering with DHL on its cross-border solution, our customer was able to minimize transportation
costs to its Mexico assembly plants significantly. They also gained complete customs and shipment visibility –
in English and Spanish.”
– Gary Allen, DHL’s vice president of innovation and product development
THE SOLUTION
DHL leveraged its existing cross-border infrastructure in Laredo,
Texas, to integrate the customer’s business and create a comprehensive solution that would operate seamlessly and provide
a common IT platform across transportation, cross-docking and
customs clearance.
In the United States, DHL was able to easily integrate the
manufacturer’s existing cross-dock network with the customer’s
cross-border activities. Doing so further enhanced less-thantruckload (LTL) shipment consolidation, direct full truckload (FTL)
and intermodal processing, and direct shipment optimization.
At its Laredo operations for the customer, DHL performed
warehousing, consolidation, deconsolidation, verification of
supplier compliance, and border collection transport. In addition,
the site managed all customs brokerage and verification services
for shipments of production components, aftermarket parts and
finished trucks crossing the border.
• A turnkey IT system was implemented quickly across all
services and solutions.
• Enhanced reporting across the entire business allows the
manufacturer to identify cost sources and allocate fairly to
its network.
• Visibility provided to the manufacturer in both English and
Spanish allows the customer to proactively manage its business.
For the final piece of the solution, DHL provided a consistent
IT platform featuring bilingual applications to provide customs
and shipment visibility on both sides of the border. DHL provided
bilingual training for suppliers and partners and developed
customized reporting to support the customer’s specific analysis
and performance management processes.
THE RESULTS
The cross-border solution gave the customer tremendous
cost-saving efficiencies and improved visibility and reliability.
• An end-to-end DHL solution reduced the number of partners,
resulting in internal cost savings as well as cost advantages
for bundled services.
• Consolidation/deconsolidation services optimize the utilization of
costly long-haul transportation and ensure loads are maximized.
• Consistently achieve time goal established by customer for
processing, receiving, documentation and dispatch.
• Having one point of contact for all cross-border functions simplifies
management for the customer and reduces integration costs.
Only DHL can provide a seamless cross-border
solution that optimizes your entire North
American network and gives visibility to every
move. Contact us today to discuss how we can
help manage your cross-border activities
efficiently, cost effectively and reliably.
For further information:
Contact our Logistics Without Borders experts:
800-272-1052
[email protected]
www.dhl.com
EXCELLENCE. SIMPLY DELIVERED.
DHL-5070