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Case study

DHL HELPS BRIDGESTONE INTEGRATE


SUPPLY CHAIN FOR GREATER EFFICIENCY

Customer Challenge:
nn Separate supply chains for automotive
and commercial tires
Bridgestone is the world’s largest manufacturer of tires
and rubber products. Based in Tokyo, the company nn Outdated warehouse management system

enjoys better than 15 percent market share for tires nn Need to speed-up movement of

globally, meaning about one in every seven cars and commercial tires to end customers

trucks on the road today rely on Bridgestone tires.


DHL Supply Chain Solution:
Bridgestone Europe is a key subsidiary of the company serving both nn New strategically located commercial tire
OEMs and a large aftermarket network of distributors and dealers. distribution center in Gothenburg, Sweden
On the commercial side, Bridgestone provides tires for some of the
nn Implementation of JDA WMS
largest construction and mining equipment in use today, as well as
other commercial vehicles. nn Use of DHL Freight for customer deliveries

Customer Benefits:
nn Lower supply chain costs through
increased warehouse density and
improved management

Customer Challenge nn Enhanced operational efficiency by


consolidating supply chain services with a
In Scandinavia, Bridgestone had traditionally maintained two supply single provider
chains: one for automotive tires, optimized to handle a large volume
nn Strengthened key customer relationships
of relatively standard-sized products, and one for commercial tires,
by enabling later order cut off times
which vary widely in size and are often too large to fit in shipping
containers.

The company recognized an opportunity to improve efficiency and


increase product speed to market, by integrating the commercial and
automotive supply chains. However, the gains could only be realized
by consolidating supply chain services with a single service provider
capable of simplifying communication channels and increasing
operational efficiency. The integration would also require a more
advanced warehouse management system.
Automotive
DHL Supply Chain Solution Customer benefit
DHL Supply Chain was managing Bridgestone’s automotive With a multi-country team of DHL experts working together,
distribution center in Jönköping, Sweden when the decision the integration of the supply chain was accomplished on
to consolidate was made. Based on its performance at time and under budget. The resulting supply chain is now
Jönköping, DHL was selected to manage the integration able to deliver greater efficiency, lower cost, improved
of the commercial and automotive supply chains and visibility and enhanced customer service.
implement a more advanced warehouse management
system (WMS). Cost benefits were achieved by increasing the density of
the distribution centers supporting both the automotive
As part of the integration, DHL now manages a 6,000 and commercial businesses, reducing the overall square
square meter warehouse in Gothenburg, Sweden, which footage of warehouse space in the region. In addition, the
was specifically designed to handle the non-standard sizes location of the Gothenburg facility streamlined the handling
common with commercial tires. At this facility, DHL receives of large tires and, combined with the integration of DHL
large tires directly from the Port of Gothenburg. freight services, enabled order cut-off times to be shifted
to later in the day.
To handle distribution, DHL Freight was brought in to
deliver shipments of large tires to Bridgestone commercial Finally, the successful implementation of the JDA WMS
customers throughout Sweden. Also as part of the provides a common technology platform for all Bridgestone
consolidation, DHL successfully moved Bridgestone to products in the region and improves visibility into product
a best-in-class JDA WMS. movement and costs.

quote
“DHL brought discipline and expertise to the integration
of our commercial and automotive supply chains in
Scandinavia. As a result, we are able to operate more
efficiently and are better positioned for future growth.”

David Clarke
North Region Logistics and Supply Chain Manager
Bridgestone

For further information


Contact our supply chain experts:
supplychain@dhl.com
www.dhl.com/supplychain