DHL Exel Supply Chain has been appointed by AGCO Corporation's spare parts organisation to manage its UK in-bound supplier logistics, further improving its parts delivery service to dealers. AGCO Corporation is a global manufacturer of agricultural equipment and related replacement parts.
AGCO Parts provides parts supply, distribution and complete repair solutions for the leading AGCO brands including Massey Ferguson, Fendt, Valtra and Challenger. Via its six linked warehouses in Europe, including one in Desford, Leicestershire, AGCO Parts ensures maximum uptime for end-customers' tractors, combine harvesters and other specialised farming equipment.
DHL's role is to collect parts from UK suppliers according to AGCO's schedule, consolidate them at its facility in Birmingham, where all components are checked and delivered daily into AGCO's Desford warehouse.
The Desford warehouse contains over 110,000 different part numbers, supporting numerous product ranges, some of them dating back 25 years, providing a comprehensive stock and express or VOR (Vehicle Off Road) service to UK dealers and around 100 export markets.
One key objective for DHL is to ensure the warehouse has high availability of parts on a seven-days-a-week basis, especially during critical harvesting periods. As part of this role the supply chain specialist has introduced an "implant" manager to work along side AGCO's logistics planning team at its new European operations at Abbey Park, Stoneleigh, Warwickshire.
As part of the collection service, DHL is dealing with up to 70 UK-based suppliers, working to agreed weekly key performance indicators on parts delivery.
Mike Daniels, general operations development manager at AGCO said: "A key aspect of providing a VOR service to dealers is quick availability of parts and DHL has a reliable multi-customer collection service.
"Being able to provide access to up to 110,000 parts is no mean feat, especially when we promise a premium VOR delivery service for dealers.
"Delivering this level of service is vital to our end customers, who cannot afford to lose a valuable day or even hours when it comes to harvest time. We are confident that DHL's management of our supplier deliveries will further enhance our industry-leading position in the global agricultural equipment sector."
