Sun Microsystems Selects DHL to Handle its Global After-Market Service Parts Logistics

Aug. 1, 2005
Sun Microsystems chose DHL (Plantation, Fla.) as its exclusive global logistics provider for after-market service parts. The agreement leverages DHLs

Sun Microsystems chose DHL (Plantation, Fla.) as its exclusive global logistics provider for after-market service parts. The agreement leverages DHL’s international network and the company’s expertise in logistics, express shipping, and air and ocean freight to provide Sun with a comprehensive, seamless global logistics solution customized to Sun’s business requirements. The contract will involve more than 300 logistics facilities housing thousands of parts to be used for service support to 1.5 million Sun customer systems in over 100 countries. The new three-year agreement builds upon the success of the existing relationship between the companies in the Asia Pacific region, where DHL Solutions has been Sun’s service parts logistics provider for the past four years. The new agreement extends this relationship to encompass management of Sun Microsystems’ after-market service supply chain on a global basis. DHL Solutions, the global contract logistics division of DHL, will manage and implement the agreement, while DHL Global Customer Solutions (GCS), the company’s global sales and relationship management team, will provide customer coordination on a worldwide basis across DHL’s network. Under the agreement, Sun Microsystems’ corporate customers will have access to a single, consolidated provider versus multiple providers across the globe. Thanks to DHL’s global footprint and international reach, parts orders received by Sun and DHL service centers will be routed to the most appropriate local DHL facility anywhere in the world, from where replacement components will be packed and shipped to Sun engineers in the field, typically within a 2-4 hour window. As part of the agreement, DHL will co-develop a global IT architecture specifically designed for service parts logistics management. It will let Sun eliminate a number of existing regional legacy IT systems and enable the company to globally monitor and manage its worldwide service parts inventory and customer order processing in real time. The new systems will also enhance Sun’s ability to optimize its global supply chain, minimize inventory investment, and ensure the delivery of consistently high customer service levels while controlling costs. The agreement with Sun Microsystems comes as DHL’s announces the expansion of DHL Solutions in the American marketplace. DHL Solutions offers customized end-to-end logistics solutions for the entire supply chain, ranging from consulting and supply chain design to warehousing, distribution logistics and order management.