CPL – Daimler switches from international express to deferred deliveries

Daimler aims to switch more of its international express shipments to deferred products to save on cost while ensuring reliable transit times, a company logistics manager told the Courier and Parcel Logistics conference in London yesterday.

The company, which uses the services of all four integrators, DHL, UPS, FedEx and TNT, is also considering adding another company to its CEP service providers, Gerd Pomberger, head of global planning and procurement for CEP services, said.

Over the last two years, Daimler has centralised its CEP planning and procurement in the Stuttgart head office. Previously this was handled at local level, resulting in deviance from global standards and agreements, and a lack of transparency, Pomberger explained.

In order to offer CEP shipping across the entire group of brands and subsidiaries, Daimler has created its own intranet tool under the name of “CEPRIS”, integrating all agreements and negotiated rates with the four integrators for delivery of documents and parcels up to 70kg. This also provides one single database for reporting purposes. “CEPRIS is a key success factor,” Pomberger emphasised.

At the same time, the automotive group has defined its international CEP requirements into four service levels: economy, offering reliable transportation; next-day express by 09:00 and 12:00; and special services/urgent deliveries, he said.

For the first three service levels, Daimler works with all four integrators, “trying to use their regional strengths around the world”, Pomberger said. The company is looking into adding another service provider, he added. “I’m sure we will add one or more company to our portfolio in future,” he said. For urgent shipments, Daimler uses DHL, time:matters, TNT and World Courier.

Daimler is now actively trying to steer more of its CEP traffic flows from express to economy delivery, Pomberger said. “We need greater flexibility and economical alternatives for less urgent shipments,” he declared. “(Our) demand for economy services is growing.” The company was under “ enormous cost pressure” and needed “competitive” rate levels, he noted.

In addition, the automotive group needed its CEP providers to ensure reliable transit times, high quality reports and service offers focused on Daimler’s needs. “CEP firms often offer products and services that do not fit our needs,” he criticised. “I do not always have the feeling that the integrators listen to our needs.” But he stressed that overall Daimler had “good service levels” around the world from its providers.