DHL and Infineon Technologies create ‘perfect’ supply chain
Breakthrough global partnership established for Zero Defect Program wins DHL and Infineon Technologies “Best Collaborative Partnership Award” and raises the bar for supply chain excellence
DHL,the world’s leading logistics company, and Infineon Technologies,a global semi-conductor solutions provider, have together created the ‘perfect’ supply chain via a breakthrough Zero Defects Program. With the deceptively simple objective of reducing the number of supply chain management and distribution defects to zero, the program was launched in Asia Pacific in 2010 and 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. The 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. It also garnered both companies “Best Collaborative Partnership Award” at the 9th annual SCM Logistics Excellence Awards held in Singapore in July this year.
“Overseen by DHL CSI, the Zero Defects Program was undertaken by all three DHL business units as we manage Infineon’s supply chain end-to-end, therefore requiring all of our forwarding, warehousing, distribution and express services,” said Richard Owens, Executive Vice President, DHL Customer Solutions and Innovation. “The program taught us that while we were good, being good was not good enough. So 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 organizational culture of excellence and collaboration that ultimately makes 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 center 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 a 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 per cent – no more than 47 defects out of more than 270,000 delivery notes – at Infineon's regional distribution center 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 per cent reduction in defects. In 2012, DHL achieved the '0' defect target.
Roxane Desmicht, Senior Director for Corporate Supply Chain, Infineon Technologies Asia Pacific, said: "In our business, striving for perfection is vital to our success. We serve customers who rely on just-in-time deliveries to keep their assembly lines moving. A defect in one of our shipments for any reason can idle a line and result in a loss of millions of dollars. Our collaboration with DHL has helped us streamline our processes and find greater operational efficiency. DHL has the foundation, the culture and the methodologies to work together with us to achieve our Zero Defects goals.”
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.
 DHL Customer Solutions & Innovationis a unit within DHL dedicated tothe management of sectors and global customers through the creation of globally connected communities and action plansas well as the development of innovative products and ideas aimed at improving the DHL customer experience.