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RESILIENCE360

SCHMITZ CARGOBULL EXPANDS SUPPLY CHAIN


VISIBILITY TO FULFILL DELIVERY PROMISES
WITH DHL RESILIENCE360

CUSTOMER OBJECTIVES:
nn Improve visibility of inbound-to-manufac-
turing supply chains and logistics flows

nn Obtain a global yet detailed view of


Schmitz Cargobull AG is Europe’s leading manufacturer of
daily events impacting suppliers and
semi-trailers and trailers, with annual production in excess
production
of 45,000 vehicles and turnover of €1.6 billion. As a pioneer
in the industry, this family-run German company attributes nn Build awareness and knowledge of Tier 1
success to its comprehensive brand strategy, consistent quality suppliers and the outbound distribution
standards, and fulfilment of delivery promises despite short lead network to improve efficiency and reduce
times and high demand volatility. The company operates today logistics costs
on a global scale, with plants across Europe and Asia (China),
and requires optimal network transparency to handle longer, DHL SOLUTION:
more complex supply chains featuring greater interdependen- DHL’s innovative supply chain risk
cies. With DHL Resilience360, Schmitz Cargobull not only management solution, Resilience360,
improved their supply chain visibility, but is now able to more supported Schmitz Cargobull with:
pro­actively protect on-time delivery of their customer orders.
nn Supply Chain Visualization: Mapping the
material flow and supplier clustering
CUSTOMER OBJECTIVES nn Incident Monitoring: Providing simple,
efficient 24 / 7 alerting on potential supply
Following rapid business growth and expansion into new geographies,
chain disruption in near-real time and
Schmitz Cargobull needed better supply chain visibility and transparency
globally
on logistics flows, right down to component level (e.g., axles, tires, etc.) –
a considerable challenge in this automotive sub-sector which is character-
ized by extremely short lead times. Trailer customers can typically change CUSTOMER BENEFITS:
their order right up to the point of production. Some custom-built items nn At-a-glance end-to-end supply chain
must be urgently produced within 18 hours and the frozen zone begins visibility at production component level
only 10 hours before production starts. The trailer subsector also features
nn Enhanced capability to fulfill delivery
high demand volatility, requiring just-in-time and 100% make-to-order
promises
inbound supply chain processes.
nn Opportunities to improve Tier 1 supplier
Schmitz Cargobull also aimed to obtain a global yet detailed view of daily efficiency and outbound distribution
events (strikes, weather alerts, public holidays, etc.), especially any events
nn Identified new potentials to drive down
impacting their own production sites or their supplier base all over the world.
logistics costs
Furthermore Schmitz Cargobull wanted to build awareness and knowledge
of Tier 1 suppliers and the outbound distribution network to improve ef-
ficiency and reduce logistics costs. Schmitz Cargobull has a broad supplier
base located in 19 countries; these suppliers input to a total
of 8 production facilities, and there are drop-off points for
CUSTOMER BENEFITS
finished trailers in 25 countries. Supply chain visualization
Schmitz Cargobull has achieved end-to-end supply chain
was therefore an essential step to creating a comprehensive
visibility at production component level with a significantly
disruption management system for Schmitz Cargobull.
lower investment of manpower than in the past. The orga-
nization enhanced its capabilities to fulfill delivery prom-
DHL SOLUTION ises, thanks to proactive alerting on potential supply chain
disruptions in the inbound and outbound logistics flows.
The DHL Resilience360 team provided Schmitz Cargobull Resilience360 also provides Schmitz Cargobull with the abil-
with an interactive global map of its end-to-end supply ity to improve efficiency by monitoring Tier 1 suppliers and
chain. This captures the logic of network interdependen- protecting Tier 2 suppliers. Schmitz Cargobull and DHL are
cies, both upstream and downstream, and provides a expanding the alerting scope to critical parts of the Tier 2
multi-tiered view of all key component suppliers and logis- supplier base.
tical locations. Easy-to-use search and filter capabilities
enable Schmitz Cargobull supply chain executives – each Schmitz Cargobull also benefits from improved demand fore-
responsible for specific production components – to moni- casting at supplier materials level. For example, Schmitz
tor products, parts, materials, and other sub-network attri- Cargobull was not impacted by strikes in Germany and
butes. This interactive solution enables Schmitz-Cargobull Turkey because with the help of “Incident Monitoring” the
to achieve valuable route visualization and derive views on SC-organization was able to proactively increase buffer
material logistic movements. stock before this disruption could affect its operations.
In addition, visualization also helps Schmitz Cargobull to
For Schmitz Cargobull, supply chain visualization helped reduce logistics costs by identifying potential supplier ex-
to identify two significant risks – the potential for bottle- work transformation and supplier consolidation projects. A
necks in the road network located in the south eastern useful spin-off of this new visibility is that Schmitz
region of Europe, and the relative unfamiliarity of operat- ­Cargobull is saving on travel costs by rationalizing its
ing in China. worldwide supplier audit activity.

The DHL team customized a supply chain incident monitor-


ing platform which provides 24 / 7 near real-time alerting and
feedback loops on disruption occurring anywhere in the
world. DHL and Schmitz Cargobull cooperated closely to con-
figure dedicated incident alerting profiles that would ensure
each member of the supply chain team would receive only
relevant e-mail alerts. This platform also provides a feature
to manually add incident, enabling Schmitz Cargobull to
quickly disseminate information about its network incidents
across the organization (and not in the public domain).
CUSTOMER’S VIEW
This user-friendly, integrated web based platform enables
“With Resilience360, we gain better visibility of our end-
Schmitz Cargobull to easily track and prepare for incidents
to-end supply chain, and we’re aiming to expand this view
well before they become threats and can be accessed any­
to our first tier suppliers and our outbound supply chains.
time and anywhere in the world. The organization can now
By integrating Incident Monitoring functionality into our
plan and arrange emergency shipments to stay ahead of the
supply and delivery processes, we are able to anticipate
competition and save production, so business never slows
events and avoid disruptions, and reserve alternative re-
down and customer orders can be delivered on time.
sources before the competition can, effectively safeguard-
ing the delivery of each customer order.”
As a testament to the flexibility of Resilience360, DHL has
also created more than 10 new solution features to meet
Peter Schonefeld, Head of Supply Chain Management,
Schmitz Cargobull’s specific needs, including a customized
Schmitz Cargobull AG
product view which connects sites and products according
to the customer´s organizational structure. Further long-
term development is planned to more closely tailor Resil-
For further information
ience360 to Schmitz Cargobull´s make-to-order supply chain
Resilience360@dhl.com
processes.
www.dhl.com/Resilience360