Case Study: FedEx eSupply Chain Solution

FedEx eBusiness

Paperless Shipping the Solution for the Best Dealer Direct Network
Mercedes Benz makes prestigious cars for discerning customers and it goes without saying that only the best is good enough. But even the nest cars sometimes need spare parts and in the US the most demanding, service-oriented market in the world Mercedes-Benz set itself a real challenge.
It is important that customers vehicles are repaired in the shortest possible time. Fine, if the parts are in stock at a US depot, but a tough call if it has to be own in from the DaimlerChrysler warehouse in Germersheim, Germany. When FedEx was rst called in, the initial solution was straightforward the creation of a Dealer Direct system so that Mercedes-Benz dealers in the US could order genuine Mercedes-Benz parts using FedEx direct overnight delivery. Shorter transit times, earlier delivery times and a single service provider for cost-effective door-to-door delivery were immediate benets. But FedEx quickly realised that it could do much, much more for DaimlerChrysler to improve its levels of service. FedEx and DaimlerChrysler gradually expanded the logistics solution to embrace Electronic Data Interchange (EDI), automated solutions and electronic customs clearance. What emerged is a true team between DaimlerChrysler and FedEx, and the organic development of a total, paperless EDI shipping solution. DaimlerChrysler no longer needed to generate airwaybills and commercial invoices. DaimlerChrysler sends a separate data transmission to a FedEx mailbox. DaimlerChrysler generates labels with a shipment specic barcode. Using barcode scanning FedEx then retrieves all the required shipment information from the mailbox. The package is effectively ready for delivery to its end destination a Mercedes-Benz dealer in the US. The result? A totally paperless shipping process relying entirely upon advanced and reliable EDI solutions. Genuine Mercedes-Benz parts are rapidly transported to where they are needed with time-denite delivery (International Priority DirectDistribution), error-free, rapid shipping and customs clearance. That translates into time savings, cost savings and the bottom line that matters most to DaimlerChrysler superior customer service. Mr Rabenstein, Transport Logistics Manager at DaimlerChrysler, said:

FedEx knows that we expect the highest standards and they always deliver on their promise. We were prepared to commit the necessary resources to develop in partnership an advanced, paperless shipping process, and it works like clockwork.

Proven benets:

Minimal use of paper no airwaybills or commercial invoices Automatic labelling/bar code reading for accurate tracking EDI relationship between company and service provider means less work is required at the customer shipping location with obvious time and cost benets EDI between broker and customer for customs clearance saving hours of preClearance work A highly efcient dealer distribution network that provides excellent customer service