in collaboration with How Collaboration in a Complex Outsourcing Situation Really Works Capgemini helps DHL take over the Spare Parts Management operation of high-tech major The Situation DHL was able to complete a phased The European unit of a global high- rollover of the high-tech company’s tech company needed more flexibility spare parts operation to its own and coordination in its spare parts operation with no disruption in management supply chain. Factors to services to the market. The company consider included cost productivity, is already seeing significant year-on- management development, risk year cost reductions. mitigation, leverage, as well as deciding whether it should remain a How DHL and Capgemini core responsibility for the company. Worked Together DHL is part of Deutsche Post World The Solution Net, the world’s leading logistics The company decided that company. The high-tech company is outsourcing its entire spare parts one of the largest electronics management operation would allow it manufacturers in the world. The two to focus on core activities instead. companies have worked together a DHL was asked to take over the number of times in the past and have operation. DHL in turn asked a strong, ongoing relationship. Capgemini to help define and Capgemini had worked individually implement the best solution. with both companies on a number of projects in the The Result past, but was now Using a full suite of SAP products together with Capgemini’s outsourcing services, Having a truly collaborative relationship“ with Capgemini was essential to making this project a success.” Gert Vriend, Director of Business Development, DHL Exel Supply Chain Manufacturing, Retail & Distribution the way we do it presented with the opportunity to contracted to Capgemini are of the Rightshore® Center in Mumbai. This work with the two jointly on a same duration as the contract between was followed by a Go-live of the complicated and challenging project. the high-tech company and DHL, decentralized Warehouse Management helping to align all the parties System (SAP LES) after which the IT The high-tech company sought an exit involved and keeping common goals structure in the warehouse itself was strategy for its spare parts in sight for everyone. activated. The final Go-live occurred a management business in Europe. It few months later after testing and wanted to phase out all areas of its Once everything was in place, it was updating were completed. involvement—customer service, time to begin the implementation inventory management, financial process. There could be no disruption Collaboration was key to the success services and physical activities—and in service to customers; so it was of the project. There was no denying move out of an existing facility, while decided that a phased approach— the complexity of the situation, but the transferring over a hundred synchronizing both the IT and process three companies had a past history of employees to a service provider. implementation—offered the best working with each other. This allowed However, it did not want a disruption assurance for business continuity. The the nurturing of an atmosphere of in services to its market, and expected Application Management and trust and shared goals that saw all of transferred employees to remain Infrastructure Management systems them through to the end of what at employed near their current location. were transitioned first, with Capgemini times seemed like a maze. The overall goal was to achieve managing these elements from its significant year-on-year cost reduction. About Capgemini and the The company looked to DHL to Collaborative Business Experience® handle this complex, end-to-end supply chain outsourcing challenge. Capgemini, one of the and through a global delivery model DHL called on Capgemini for help to world’s foremost providers called Rightshore®, which aims to offer define the most appropriate IT of consulting, technology and the right resources in the right location at solution. The two companies initially outsourcing services, enables its clients competitive cost. Present in 36 countries, looked at best-of-breed solutions but to transform and perform through Capgemini reported 2007 global those proved to be generally too technologies. revenues of EUR 8.7 billion and employs complex, and expensive, while lacking over 86,000 people worldwide. in support and interfacing Capgemini provides its clients with insights and capabilities that boost their More information about our services, functionality. The team eventually freedom to achieve superior results offices and research is available at settled on a full suite of SAP through a unique way of working - the www.capgemini.com applications as the best possible Collaborative Business Experience® - solution. Not only would the suite integrate with the company’s own SAP Capgemini Netherlands Approved by: system, but it was all-encompassing Manufacturing, Retail & Distribution Gert Vriend, Director of Business Consulting & Outsourcing Services Development, DHL Exel and would play to a strong set of Supply Chain Jaap Blankevoort, Account Director, skills and expertise already available Transformational Outsourcing within the three companies. Applications Management Capgemini Rightshore® While DHL worked to take over the physical management of a 16,000 In collaboration with international mail services, combined square meter warehouse stocked with with worldwide coverage and an in- depth understanding of local markets. over 48,000 articles and over 5,500 DHL's international network links more lines of daily orders, Capgemini than 220 countries and territories focused on setting up a whole new IT DHL is the global market leader of the worldwide. Some 300,000 employees structure. All of the finance and international express and logistics are dedicated to providing fast and accounting services were moved onto industry, specializing in providing reliable services that exceed customers' the DHL system but handled from innovative and customized solutions expectations. Capgemini’s Rightshore® facility in from a single source. DHL is a Deutsche Post World Net Krakow, Poland. The SAP Application DHL offers expertise in express, air and brand. The group generated revenues Management and Infrastructure ocean freight, overland transport, of more than 63 billion euros in 2007. Management work was outsourced to contract logistic solutions as well as a Capgemini workgroup in the Netherlands. Both work streams Copyright ©2008 Capgemini. No part of this document may be modified, deleted or expanded by any process or means without prior written permission from Capgemini. MRD20080819_288.