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Prospering through a strategic collaboration

The key to KONE’s successful logistics operations is having accurate and timely information available at all phases of the delivery chain. Reducing the environmental impact of transportation through route and shipment optimization – and through careful analysis of eco-efficient transportation models – is also an important focus area. This is made possible by utilizing the internal expertise as well as support from our key logistics service providers, such as DHL, who have similar ambitious targets.

KONE's products and components need to be delivered effectively to more than 450,000 customers across the globe. While these journeys can be extensive and complicated, we do our best to minimize the carbon footprint of our operations and services.

A longstanding collaboration

To carry this out, KONE has been collaborating with DHL for nearly a decade, working together to solve a wide range of logistics challenges. This co-operation involves KONE’s new equipment business and service business areas.

According to Christian Leppä, Logistics Sourcing Category Manager, at KONE, two main factors influenced the company’s decision to choose DHL as one of the strategic logistics service providers. “One is their wide service portfolio, which gives us access to all the solutions we need. Another very important aspect is geographical coverage. KONE operates in over 60 countries which requires also a global footprint from our logistics service providers as well, and DHL is definitely able to deliver in that regard”, he says. On top of those, Leppä cites DHL’s strong account management, which means that KONE receives the necessary support and attention from DHL’s top management.

Keeping the supply chain in top shape

For Manoella Wilbaut, Head of Global Commercial Developments – Sustainability, DHL, the motto “Living Responsibility” applies to everything the company does. “We are present in 220 countries, have a very broad network and employ half a million individuals. We have a responsibility to walk the talk.”

The word “robust” is something that both Wilbaut and Leppä are keen to emphasize. DHL works constantly to ensure the transportation network remains robust, according to Wilbaut. Leppä, meanwhile, talks about the robust processes in place for KONE’s supplier base management. This can refer to anything from tactical and strategic meetings, to supplier quality management and continuous improvement programs to ensure that work is carried out more efficiently and in a way that reduces the risk of accidents and business interruptions.

“When it comes to fleet and transport, we can help customers such as KONE to include, when relevant, alternative fleet that reduce the environmental impacts such as noise, CO2 or NOx,” says Wilbaut. “We’re also working on warehouse optimization through different initiatives focusing on the energy efficiency of the warehouses..”

Working smarter together

These solutions help DHL to deliver the most optimal solutions for KONE. “The foundation for the discussion around sustainability and operational improvement starts with the monthly performance report that all KONE’s key logistics service providers are required to provide, covering all modes of transport, including also the carbon footprint for each shipment” says Timo Skötsch, KONE’s Global Customer Manager at DHL Customer Solution & Innovation.

Skötsch notes that KONE and DHL have started to think about how to harmonize logistic flows through consolidating cargo. By helping to merge shipments, both energy costs and carbon emission can be reduced.

“We have a good strategic customer who is willing to pilot new innovations and also open to engage in discussions with us to see what works and how it can improve their supply chain,” concludes Skötsch.

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