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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