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Blue Yonder > Case Studies > DHL Optimizes Transportation Processes to Deliver Success
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DHL Optimizes Transportation Processes to Deliver Success

Technology Category
  • Analytics & Modeling - Predictive Analytics
Applicable Industries
  • Retail
Applicable Functions
  • Logistics & Transportation
Use Cases
  • Predictive Replenishment
  • Supply Chain Visibility
Services
  • System Integration
The Challenge
As the world’s largest express and logistics provider, DHL strives daily to meet its customer requirements by optimizing schedules, loads and processes within its current business constraints. This entails finding the most cost-efficient solutions for determining servicing locations, maximizing transportation costs and identifying consolidation opportunities. The company needed to gain a better understanding of how to quickly provide solutions customer projects and needed more flexibility and agility in controlling their vast network of operations. DHL’s goals were to enable transportation cost savings, improve optimization exercises and communication of results, replicate and evaluate business scenarios and understand the impact of various variables on proposed transportation solutions.
About The Customer
DHL is the world’s largest express and logistics provider. They strive to meet customer requirements by optimizing schedules, loads, and processes within their current business constraints. This includes finding the most cost-efficient solutions for determining servicing locations, maximizing transportation costs, and identifying consolidation opportunities. They needed a better understanding of how to quickly provide solutions for customer projects and needed more flexibility and agility in controlling their vast network of operations. Their goals were to enable transportation cost savings, improve optimization exercises and communication of results, replicate and evaluate business scenarios, and understand the impact of various variables on proposed transportation solutions.
The Solution
The analysis and realistic decision making provided by Blue Yonder’s modeling and network design solutions allows DHL to produce the optimal solutions required of their vast customer base. The company has leveraged modeling to substantially cut transportation costs for other manufacturing, retail and consumer goods customers worldwide. DHL also uses transportation modeler to create tactical solutions, compare cost scenarios, and determine how changes impact service levels. DHL leverages Blue Yonder’s solutions to solve problems ranging from evaluating the impact of different ship dates for a manufacturing customer, to determining hauling savings for a retail customer, to identifying consolidation opportunities for a consumer goods sector.
Operational Impact
  • DHL has achieved 7% direct savings as a result of better optimization, use of vehicles and stops per vehicle.
  • DHL has achieved approximately 15% savings for a prominent retail customer based in the United States through their leverage of the capability across delivery, fleet and location parameters.
  • DHL has leveraged modeling to substantially cut transportation costs for other manufacturing, retail and consumer goods customers worldwide.
Quantitative Benefit
  • 7% direct savings as a result of better optimization, use of vehicles and stops per vehicle.
  • 15% approx savings for a prominent retail customer based in the United States.
  • Substantial cut in transportation costs for other manufacturing, retail and consumer goods customers worldwide.

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