Sun Microsystems, in naming DHL as its sole global logistics provider for after-market service parts, looked for worldwide reach in its service provider. The contract involves more than 300 logistics facilities housing thousands of parts to support 1.5 million customer systems in 100-plus countries.
"As a truly global technology company, our objective was to identify a global logistics provider with the infrastructure and expertise needed to deliver a supply chain solution to serve our customers in every corner of the world," says Brad Schultz, Sun's vice president for services readiness and operations. "After a rigorous selection process, we concluded that DHL was the provider offering the right blend of global resources, industry-leading information technology capabilities and dedication to customer service that our business demands."
The new three-year agreement builds upon the existing relationship between the companies in the Asia Pacific region, where DHL Solutions has been Sun's service parts logistics provider for the past four years. The new agreement extends this relationship to encompass management of Sun Microsystems' after-market service supply chain on a global basis. DHL Solutions, the contract logistics division of DHL, will manage and implement the agreement, while DHL Global Customer Solutions, the company's global sales and relationship management team, will provide customer coordination on a worldwide basis across DHL's network.
DHL says that parts orders received by Sun or DHL service centers will be routed to the most appropriate local DHL facility anywhere in the world. From there replacement components will be packed and shipped to Sun engineers in the field, typically within a 2- to 4-hour window.
As part of the agreement, DHL will co-develop an IT architecture specifically designed for service parts logistics management. This next-generation IT system will allow Sun to eliminate a number of existing regional legacy IT systems and enable the company to monitor and manage its entire worldwide service parts inventory and customer order processing in real time.
The agreement with Sun Microsystems comes as DHL has announced it is expanding DHL Solutions in the American marketplace. DHL Solutions Americas offers customized end-to-end logistics solutions, ranging from consulting and supply chain design to warehousing, distribution logistics and order management. The DHL Solutions unit combines three former Americas business units-Express Logistics, Airborne Logistics Services, and Solutions.
DHL Solutions Americas is headquartered in Plantation, Fla. The contract logistics provider operates in 27 countries across the Western Hemisphere, with main distribution centers in the United States, Canada, Brazil, and Mexico and a total workforce of over 3,500 employees.