Innovation

Supply chain success story: Building resiliency with Dell Technologies

In 2020, the world changed overnight. Demand for digital soared. Dell Technologies needed to adapt their supply chain for the pandemic and make it more resilient and reliable for the future. Here’s how DHL delivered.

The human story behind every Dell laptop

Behind every Dell laptop, there’s a human story: The entrepreneur empowering her digital workforce; the teenager keeping up with his classwork at home; the doctor offering her patients televisits and remote monitoring. From enabling remote work and homeschooling to keeping hospitals running, Dell Technologies makes it all possible.

Video trailer: DHL's direct shipping solution for Dell Technologies.

A near-instant increase in demand

The company has always been at the forefront of the digital transformation. But in 2020, the stakes became higher as governments, education, and key industries had to operate virtually, in many cases, for the first time. A near-instant increase in demand put pressure on their distribution center, triggering the company’s risk plan. Dell quickly assembled its partners to help maintain and improve their supply chain and create a robust end-to-end solution to overcome the challenges caused by the pandemic.

This project had many moving parts, but we were able to piece them all together in just three months. We now have an agile, end-to-end solution for Dell Technologies that meets the increasing demand while maintaining the customer experience.

John Flood, Global Customer Manager Dell Technologies at DHL Customer Solutions and Innovation

The making of a more resilient and reliable supply chain

Dell Technologies wanted a logistics solution that guaranteed a more resilient and reliable supply chain in the future. The sudden spike in demand, high volumes in the network, and a distribution center working near capacity led Dell to implement a fast and efficient direct shipping model for the delivery of finished goods from the company’s bases in China to customers in its three biggest European markets: France, Germany, and the United Kingdom.

That’s where we came in. As the world’s leading logistics company, we fully understand how important it is to ensure that goods are at the right place at the right time. In the wake of the global pandemic, making supply chains resilient and reliable has never been more critical.

Direct shipping solution

Dell Technologies and DHL collaborated closely to identify the bottlenecks and inflexibility in their supply chain and ways to improve it. Working hand in hand, we developed a direct shipping model that was more agile and maintained the company’s traditionally fast international lead times.

The direct shipping solution bypasses Dell Technologies’ distribution center and reduces touchpoints along the supply chain – transporting products directly from China to distribution hubs in the destination markets. Our Amsterdam base serves as the inbound hub in Europe, where the goods are received, processed through customs, and sorted into three country lines. From there, our secure service forwards the shipments to local hubs in France, Germany, and the UK. We utilize the DHL Global Forwarding Control Tower for end-to-end management, combining visibility, reporting, and billing.

99%

ON-TIME PERFORMANCE

3 months

FROM DESIGN TO IMPLEMENTATION

4-5 days

DOOR-TO-DOOR LEAD TIMES

The pandemic has accelerated the digital transformation and tested traditional supply chains. Together with Dell Technologies, we’ve developed an innovative direct shipping solution that leverages the strengths of our global network.

Thomas Mack, Executive Vice President, Global Airfreight, DHL Global Forwarding

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The future of shipping reengineered

Digital technology is reengineering our lives.

At the height of a global crisis, this customer-centric solution was designed and implemented in just three months. It’s achieved an average of 99% on-time performance to the final-mile carrier hubs, increasing reliability while reducing lead times. Lowering risk by bypassing large distribution centers and reducing non-value-add touchpoints increases resiliency.

Since we wrote this success story, Dell Technologies has now made supply chain resiliency a strategic global initiative.

Connecting people, improving lives

The world changed overnight, and there’s no going back. With new ways of living, learning, and working now an integral part of society, digital technology is reengineering our lives. And it’s driving us to reengineer logistics.

Like Dell Technologies, we wish to enrich every customer’s life. That’s why connecting new ideas, people, and technology is the inspiration behind everything we do.

By working closely with Dell Technologies and other like-minded customers, we’re building the resilient and reliable supply chains of the future so that, together, we can connect people and improve lives.

Published: February 2021