DHL wins Autoliv China’s Best Logistics Service Provider Award

DHL Global Forwarding sets up Buyer Consolidation Hub to improve Autoliv’s inbound flows from Europe to Asia
World’s leading automotive safety supplier gains competitiveness via reduced supply chain costs

Bonn, 03/14/2013, 10:00 AM CET – DHL Global Forwarding has been awarded the 2012 Best Logistics Service Provider Award from Autoliv, the world’s largest automotive safety supplier. Autoliv China honored DHL for the innovative supply chain solution implemented which significantly improved overall logistics efficiency and reduced inventory holding costs.

“Autoliv China’s business with DHL has grown over the years as they have demonstrated the ability to manage complexity with ease and accuracy. We benefit from the optimized processes in place by reducing our inventory holding costs, and ensuring a stable flow of material from the suppliers in Europe to Autoliv China’s factories. These materials are continuously shipped at the right time and in the right quantity”, says Frederic Burguez, Vice President for Quality and Logistics at Autoliv China.

Among the innovative solutions DHL set up for Autoliv China was a “Buyer Consolidation Hub“. DHL manages the transport flows of materials sourced from over 200 suppliers in 15 countries across Europe to Autoliv China’s factories across China where the company manufactures its wide range of market-leading safety products for the global automotive industry.

An integrated Electronic Data Interface (EDI) between DHL and Autoliv China’s production systems ensure complete visibility. DHL provides Autoliv China plants with daily updates on the status of their purchase order (PO) and inventory during the trans-shipment process from Europe until their intended destination in China. These daily shipment offer Autoliv China a view of the incoming raw material flow to its plants, allowing better demand forecast with suppliers and avoiding unnecessary ad-hoc air freight shipments from Europe.

“Autoliv China’s recognition of DHL is a strong endorsement and further showcases the value of our expertise we have built up for the automotive sector; especially in inbound to manufacturing services and on-site production logistics. Our solution for Autoliv China was specifically tailored after understanding their needs and challenges, and further facilitates the company’s competitiveness in the market place,” explains Edwin Chow, Automotive Sector Head Asia Pacific, DHL Global Forwarding.

DHL offers flexibility

To manage the multiple parts sourced from different suppliers across Europe, DHL also utilizes a “Scan-Match” program at the Buyer Consolidation facility in Europe. Detailed bar-code scanning of all pallets ensures that containers are filled with the right pallets before being sealed and shipped. DHL offers Autoliv China complete flexibility to change the contents of the shipment up to 24 hours prior to the loading of the container.For maximum cost efficiency, the bulk of Autoliv China’s materials are transported by ocean freight in a well-planned manner, ensuring that material is being shipped to productions sites at precisely the right time and in the right quantity. For business-critical components, DHL provides a range of air freight services to meet more urgent timelines.

Since 2009, DHL has been the logistics services provider for the imports from Europe to the Autoliv production sites in China. Two DHL Automotive Competence Centers, one in Hamburg, Germany and one in China, centrally manage the flow of inbound material from Europe to Asia. The range of services provided by DHL also includes customs clearance, cross-docking, container loading and container optimization.

Autoliv is the leading company in its sector and develops, manufactures and markets airbags, seatbelts, steering wheels, passive safety electronics and active safety systems such as radar, night vision and camera vision systems.