The world has changed radically over the past 30 years – primarily due to technological progress. There is still no end in sight to this development, in which technology companies play a vital role. The development and life cycles of industrial products, in particular from the technology sector, have become drastically shorter in recent years. This also places special demands on logistics. We reorganized logistics for a major customer from the high-tech sector.
Demands on Reliable Logistics
The ability to constantly innovate is a hallmark of companies in the technology sector – they do not focus on how the world actually works, but rather on how it could work. And eventually, they pave the way for innovative strategies. The demands on our work at DHL Freight as a logistics pioneer are similar. That is why we particularly enjoy working with tech companies and finding solutions together for the challenges of our time – today and in the future.
Innovation, Flexibility and Security
Challenges and high standards like these require an individual strategy and are the ideal opportunity for us to make our mark. They allow us to prove what we can achieve, and they provide real added value.
The specification profile of our tech customer is essentially based on four pillars:
- Close coordination between DHL Freight and the client and high-quality services
- Innovative solutions to keep the lead in a competitive market
- Logistics to cope with major seasonal fluctuations
- Special security requirements
Logistics demand the most individual solutions for each company and depend on many factors: where is the company located? From where does it obtain its goods – and where does it have to deliver them? What kind of goods are involved and how do they have to be packaged? Do they need to be refrigerated or specially protected, for example?
Furthermore, there are issues concerning volume, weight, frequency of shipments, or delivery speed. Reorganizing a company's logistics first requires a detailed assessment of the current conditions, challenges, and objectives for the future. It is only after this evaluation, that we develop an individual logistics concept for our customers.
Challenges of Our Customer
In working with our tech customer, we had to address several issues. The first condition was the need for TAPA-TSR (Trucking Security Requirements) certification, which specifies the minimum-security standards for road transport of goods within the supply chain. Especially when carrying high-value goods, the TSR are of essential importance in road freight. In addition, there were strict specifications for the vehicles to be employed. These had to meet high security standards and provide appropriate protection for the transported goods.
However, strict security precautions apply not only to the vehicles themselves, but also to the route of transport: parking of our trucks in regular rest areas during driving breaks is prohibited; instead, drivers must head for specially secured parking areas to take a rest, while in addition, on longer routes, we are always on the road with two drivers at the same time. Moreover, stopping in the immediate vicinity of loading operations is strictly forbidden – in terms of safety, this is all perfectly understandable.
However, if despite precautions something does not go according to plan and deviations or incidents occur, our customer expects immediate notification of such events in order to be promptly involved in a joint solution process.
“The goal of our customer was the flexible and safe delivery of his goods matching high security standards. Through our cooperation, we were able to stabilize his logistics and give him the certainty to be able to expand with his business.”Jessica van Beek | Global Sector Head Technology DHL Freight
To meet the requirements of our tech customers, we have developed a corresponding strategy and taken various steps. It was decided to cooperate exclusively with TAPA-TSR certified subcontractors. We also have defined strict regulations for the vehicles being used: their load compartments must be equipped not only with resistant sidewalls and ceilings, but also with padlocks to ensure additional protection against unauthorized access to the cargo.
Apart from that, we integrated a live tracking system into our logistics concept. By means of GPS monitoring, the whereabouts of vehicles can alternatively be identified at any time, so that rapid action can be taken if anything deviates from the plan. We have also provided a geofencing solution that alerts as soon as a truck leaves predefined routes or areas.
All those involved coordinate closely with each other in weekly status calls, discuss the past week, draw conclusions from the cooperation and optimize processes for the future.
Our landing page on this topic provides information on the challenges and opportunities that arise in logistics for technology companies. In various case studies, we show companies that are helping to shape the future with innovations in robotics, artificial intelligence or big data.
Results of Our Collaboration
After the implementation of our solution, positive results from our collaboration have successively emerged. All security key figures have improved significantly. As a result, the number of security incidents has decreased to a below-average level, which further contributes to the protection of goods.
This leads to greater customer satisfaction and, at the same time, to confidence on the part of the client's company: it can expand its business knowing that logistics will keep pace with continued growth.
The solutions developed specifically for the individual challenges of our customer and the careful implementation of these solutions have contributed to an increased security of the customer's goods in a very short period of time. Innovative logistics concepts have provided our client with the opportunity to continue developing positively.