News from Scania: Scania has awarded DHL Supply Chain a three-year contract to manage its aftermarket parts distribution.
The new logistics solution provides improved service performance to Scania’s network service centres across the UK and Northern Ireland, while reducing financial costs and environmental impacts.
Using its collaborative aftermarket parts distribution platform, Auto Alliance, DHL will transport Scania parts through the night for delivery the next working day. Scania migrated to a specialist aftermarket platform due to the enhanced service and cost benefits it brings. Orders are now able to be placed up to 19:30 for guaranteed next morning delivery.
Parts are loaded at Scania’s worldwide distribution centre in Belgium and at its National Distribution Centre in Milton Keynes before being trunked to strategically located cross-docks where they are consolidated with other OEM products and loaded onto radial vehicles for final mile delivery. Adding Scania’s volume to the platform increases the number of nightly delivery points to over 500, with in excess of 2,000 roll cages transported. A market-leading ‘track and trace’ system underpins the operation with parts scanned at every milestone while in transit. Scania and DHL then monitor the status using a specially designed web portal which provides a fully transparent visual of live real time activity, historic delivery and collection performance.
In addition to the distribution service, DHL is responsible for sorting, storing and managing Scania’s reusable packaging from 10,000 sq ft within the logistics provider’s Automotive Inbound Cross Dock centre in Hams Hall.
Mark Begley, Warehouse and Technical Operations Manager for Scania says, “In appointing DHL our key objective is to improve service levels to our 90- strong nationwide dealer network by providing a consistent pre-08:00am delivery service regardless of location.
“We are also looking to reduce our transport costs and carbon footprint through the introduction of a more efficient parts distribution system. Additional benefits include improved returns handling and better management of our reusable wood packaging.
“We have been extremely pleased with the planning and roll-out process, which has been very professional with good communication throughout. In terms of operational benefits, we are already seeing an improvement in performance levels.”
Michael Martin, Vice President of Business Development for DHL Supply Chain, adds, “We are delighted that Scania has joined our collaborative aftermarket platform, which will enable Scania to benefit from increased flexibility and improved visibility. Real time tracking provides peace of mind as to when the parts will be delivered, underpinned by a competitive rate.”
