FedEx Critical Inventory Logistics In Action:
Before FedEx Critical Inventory Logistics, Wincor Nixdorf had a service supply chain with unmanned storage facilities and limited visibility to parts inventory. Now the company has a cost-effective solution with real-time visibility to all locations that stock a needed part, automated delivery time and cost estimates for transportation from each location, and robust command-and-control features so technicians can count on delivery of repair parts whenever and wherever they need them.
Wincor Nixdorf understands that service after the sale is critical. When Wincor Nixdorf began requesting proposals for a service supply chain solutions provider, it was conducting inventory management using a manual process with little formal visibility to parts inventory. It managed service parts inventory in unmanned storage facilities, relying on manual processes and technicians to order, stock and transport needed parts.
Matthias Thiele, Director Logistics and Operations for Wincor Nixdorf, admits the company’s supply chain solution wasn’t ideal. “The former process was steered manually, and the visibility of the material flow was limited,” said Thiele. “The process meant we needed a higher spare part stock level in order to meet the customer service level agreements. If we don’t meet our agreements, we are penalized.”
FedEx helped Wincor Nixdorf optimize its service supply chain. Wincor Nixdorf wanted to get its new service supply chain up and running quickly. So FedEx Global Supply Chain Services proposed a phased startup that tapped into the FedEx Central Stocking Location in Memphis and the full network of Forward Stocking Locations. In just 30 days we established 22 inventory stocking facilities — outfitting many strategically located 24-hour FedEx Kinko’s Office and Print Centers® to provide round-the-clock access and custodial control of physical inventory at all times.
To streamline parts sourcing, we provide end-to-end visibility to inventory and options for manual or automated selection of stocking locations, delivery times and costs. Replenishment of issued parts is automated, so adequate inventory is always on hand. And with FedEx late order cut-off capabilities, technicians can request parts in the evening, and parts can be delivered coast-to-coast early the next day. FedEx Critical Inventory Logistics provided the infrastructure and automation needed to make and meet aggressive two- to four-hour service level agreement (SLA) metrics. The solution put Wincor Nixdorf in a position to reduce inventory carrying costs for unnecessary parts and reduce transportation costs associated with critical shipping of parts due to poor stock visibility. Best of all, it put the Wincor Nixdorf sales team in a position to meet big-name U.S. clients who consider a comprehensive service supply chain
solution a minimum requirement for doing business.
“The FedEx system allows for physical material flow even in time-critical situations,” said Thiele. “This competence will help us be a reliable service provider for our customers. If we’re talking about FedEx and Wincor Nixdorf U.S., we’re talking about a partnership that will support us in extending our customer base and one that gives us room for common development.”