Leading global logistics company DHL has partnered with semiconductor solutions provider Infineon Technologies to create the 'perfect' supply chain via a breakthrough Zero Defects Program.
Launched in Asia Pacific in 2010 with the objective of reducing the number of supply chain management and distribution defects to zero, the program achieved its goal in 2012 thanks to tremendous collaboration between DHL's Customer Solutions and Innovation (CSI) unit and its three specialist business units - DHL Express, DHL Global Forwarding and DHL Supply Chain.
This achievement brings several benefits to Infineon's customers including damage-free and always on-time deliveries with no shipments or packages lost, and correct documentation at all times.
Both companies also won the ‘Best Collaborative Partnership Award’ for their efforts at the 9th annual SCM Logistics Excellence Awards held in Singapore in July this year.
Richard Owens, Executive Vice President, DHL Customer Solutions and Innovation explains that the Zero Defects Program overseen by DHL CSI was undertaken by all three DHL business units as they managed Infineon's supply chain end-to-end across all forwarding, warehousing, distribution and express services.
While attaining zero faults in the supply chain was the benchmark of success, the real victory of the Zero Defects Program was the creation of an organisational culture of excellence and collaboration that ultimately made doing business easier for, and with Infineon Technologies.
DHL provides end-to-end logistics solutions globally and in 12 Asia Pacific markets including China, Japan and India for Infineon Technologies, a DHL customer for over 10 years. DHL Supply Chain manages Infineon's regional distribution centre in Singapore while DHL Global Forwarding is a key supplier of air freight services. DHL Express plays a vital role in getting Infineon's time-definite shipments to customers across the region. In 2012, DHL delivered over 110,000 shipments for Infineon Technologies.
Successfully completed in Germany in 2008, the Zero Defects Program was implemented in Asia Pacific in 2010. With zero tolerance for supply chain errors compounded by increasing volume, Infineon and DHL launched the Zero Defects Program to reduce risk and raise quality standards against a 2009 baseline.
In its first year, the program's target was a reduction in defects by 50% at Infineon's regional distribution centre in Singapore, managed by DHL Supply Chain. Similar goals were established for DHL Express and DHL Global Forwarding and all targets were achieved on schedule. In 2011, DHL Supply Chain was tasked to deliver another 50% reduction in defects. In 2012, DHL achieved the '0' defect target.
Roxane Desmicht, Senior Director for Corporate Supply Chain, Infineon Technologies Asia Pacific observes that their business serves customers who rely on just-in-time deliveries to keep their assembly lines moving. The collaboration with DHL has helped Infineon streamline their processes and find greater operational efficiency.
The Zero Defects Program builds on the foundation of DHL First Choice, which uses tools and strategies from Six Sigma and Lean process improvement methodologies to achieve a customer-centric culture focused on the continuous enhancement of service quality.