DHL and MIT-Zaragoza forge logistics research agreement

DHL, the worldwide leading logistics service division of Deutsche Post World Net, has concluded an agreement with the MIT-Zaragoza International Logistics Program to discover and develop innovative solutions for international supply chains. The MIT-Zaragoza International Logistics Program is a partnership between the Massachusetts Institute of Technology (MIT) and the Zaragoza Logistics Center in Spain.

DHL and MIT-Zaragoza are combining their industry-leading talents and expertise to work towards solving current issues and overcoming future challenges within the logistics industry. The collaborative venture has already launched research projects in three key areas: in-transit visibility, reverse logistics, and postponement strategies.

Keith Ulrich, Director of Technology and Innovations Management at Deutsche Post World Net, states: “Globalization presents new opportunities and challenges as the flow of goods and information continues to expand. We are excited to work closely with top researchers at MIT and the Zaragoza Logistics Center on solutions and products that our customers have not yet envisioned.” Jarrod Goentzel, Executive Director of the MIT-Zaragoza program, adds: “Our team of researchers is focused on discovering concepts and designing technologies that have real impact on industry and society. As the world’s leading logistics company, DHL offers the experience and know-how to turn these ideas into practical solutions. That is the core of the partnership between DHL and MIT-Zaragoza.”

Spearheading the DHL side is the newly formed DHL Innovation Center near Bonn, Germany, where DHL and MIT-Zaragoza experts will pursue research. DHL will also reassign members of its innovation team to the Zaragoza Logistics Center, a research institute at the University of Zaragoza, to work alongside MIT-Zaragoza researchers. This initiative extends DHL’s current relationship with the MIT Center for Transportation and Logistics (CTL); DHL is a member of the MIT Supply Chain Exchange, CTL’s corporate sponsorship program with more than 40 member companies.

The three research projects now underway typify the venture’s focus on real-world issues for international supply chains. The in-transit visibility project is determining where and how to generate value from the capability to track the whereabouts and condition of assets in “real-time” while they are moving through the supply chain. The reverse logistics project is investigating ways of optimizing the logistics for both warranty- and repairprograms used by manufacturers in various industries and for regulations such as the WEEE Directive for end-of-life products. The third project is identifying which products, industries, and locations benefit most from a postponement strategy where value-added services, such as product differentiation or assembly, occur closer to the consumer rather than at off-shore facilities. Initial results for the projects are expected in the summer of 2007.

The partnership has already obtained financial support from the EU and from InnovAragón, an initiative of the government of Aragón in northern Spain.