Constantly seeking to add value

About

DB Schenker is the world’s leading global logistics provider — they support industry and trade in the global exchange of goods through transport, air and ocean freight, contract logistics, and supply chain management. Value-added services ensure the flow of goods continues seamlessly and supply chains stay lean and optimized for success.

DB Schenker is a global logistic service provider with operations in almost every country of the world. In Tilburg, The Netherlands, DB Schenker operates a dedicated 40.000 sqm Contract Logistics operation for Nokia Networks. From there, Nokia’s network and communications components are picked, packed and distributed all over the world. To optimize order  packaging and reduce the volume of outgoing shipments, Nokia and DB Schenker jointly decided to install an On Demand Packaging® system. Supplier Packsize was a familiar partner for   On Demand Packaging® systems to DB Schenker in Germany. The cooperation and the results achieved in this operation led DB Schenker to opt for Packsize as their partner of choice in the Netherlands as well.

The Solution: Valuable contribution to maintaining their ecosystem by ensuring less CO2 emissions.

The solution installed is a Packsize EM7-35, combined with a laser dimensional scanner and an Auto Gluer to close the cut and creased boxes. Project owner at the site is Jeroen Wouters, Logistic Engineer at DB Schenker in Tilburg. “I am very satisfied with Packsize’s support during the planning and installation phase. I am confident that we will detect further saving potential with On Demand Packaging®,” Wouters explains. He also refers to the excellent cooperation with the Packsize team during and after the implementation phase.

One of the initiators of the project was Raymond Jansink, DB Schenker Key Account Manager for Nokia Networks. “We are constantly seeking to add value to Nokia’s business in a quest to offer more than just a regular supply chain solution to Nokia, I turned to the DB Schenker Innovation team in Essen, Germany. We jointly designed an On Demand Packaging® solution for Nokia involving supplier Packsize. Part of this process was a visit to the German DB Schenker site where an On Demand Packaging® solution was already in operation,” said Raymond. “It was an absolute eye-opener with regards to the efficiency and value this solution brings to a supply chain.” Before implementation, Nokia and DB Schenker had already managed to bring box fill rates up to 80%, which is substantially above the industry average. The challenge for the On Demand Packaging® system was to increase fill rates even further, as well as bring up the service levels for product returns by instantly being able to replace damaged boxes.

The solution installed is a Packsize EM7-35, combined with a laser dimensional scanner and an Auto Gluer to close the cut and creased boxes. Project owner at the site is Jeroen Wouters, Logistic Engineer at DB Schenker in Tilburg. “I am very satisfied with Packsize’s support during the planning and installation phase. I am confident that we will detect further saving potential with On Demand Packaging®,” Wouters explains. He also refers to the excellent cooperation with the Packsize team consisting of Ton de Graaf and Edwin Jonkman, both during and after the implementation phase.

Results & Perspectives

Two months into implementation, the results of On Demand Packaging® look promising. Shipping volumes are already dropping and an even more significant drop is expected. Outbound costs have reduced by 2,5%. As it turned out, On Demand Packaging requires significantly lower inventory for packing materials, so these are currently being reduced. On Demand Packaging® has also had a noticeable effect on service levels by allowing boxes that get damaged during the process to be replaced immediately. In addition, the On Demand Packaging® solution makes a valuable contribution to maintaining our ecosystem by ensuring less CO2 emissions.
And there is substantial room for further improvement. An example is the cardboard quality used. DB Schenker is using a rather thick quality of corrugated for their 31 standard box sizes. Together with Packsize, they now investigate into lighter cardboard qualities but smarter box designs produced by the On Demand Packaging® system. There still seems to be quite an amount of cost saving and service level increase potential worth pursuing that Nokia Networks, DB Schenker, and Packsize look forward to realizing.

Outbound costs have reduced by 2,5%

Improvement of fill rates

Reduction of damages

Lower outbound costs due to less inventory

“It was an absolute eye-opener with regards to the efficiency and value this solution brings to a supply chain.”

Raymond Jansink

DB Schenker Key Account Manager for Nokia Networks