DHL gets quick return as Paragon software delivers savings
Tuesday, 01 December 2009

ImageDHL Supply Chain “Non Food Retail” has installed an innovative logistics software solution from Paragon Software Systems that is set to deliver substantial annual savings while maintaining service excellence. The system optimises DHL’s routing and scheduling for its Staples office products operation based at Watford Gap. The software was up and running within eight weeks and is already producing significant benefits. With such rapid results, DHL says the software has already paid for itself.

“We are very pleased to report significant success with the Paragon software for our Staples account. The system was installed and operational in a short space of time thanks to Paragon’s support team and the benefits have been immediate,” says Craig Holmes, General Manager, DHL Non Food Retail. “Our target is to reduce our transportation costs by a six figure number in year one of using the software and then double it going forward.”

“The system will help us achieve these long-term savings by producing optimised daily plans with accurate routes and schedules that will provide savings on fuel and assets. This will also help us to ensure maximum use of our fleet capacity, giving us the flexibility to deal with up to 60 store deliveries per day across the UK, plus supplier returns and waste collections. This all adds up to tremendous savings for our customer while maintaining our current service levels,” he adds.

DHL selected the software to replace a legacy system, centralising planning at its Watford Gap national delivery network site. Planning is performed daily for multi-drop deliveries of six to 10 pallets per store. These fluctuating loads correspond to consumer demand. Paragon provides the flexibility and accuracy to enable DHL to quickly optimise delivery schedules and achieve a minimum 87 per cent load per vehicle – in essence allowing the company to maximise service, while keeping a tight rein on resources.