Our Dell Global Fulfillment and Logistics (GF&L) organization aims to develop and sustain a global transportation and logistics network that uses the most efficient and effective means for us and our transportation providers to distribute our products to our customers. Our job is to get the right product, to the right place, at the right time. Furthermore, our Dell Logistics teams must do this at the right cost. We continue to optimize transportation costs while improving quality and striving to exceed the service expectations of our customers. In fiscal year 2011, many dynamic changes within the Dell fulfillment model challenged our teams. As a result, there were and will continue to be refinements to our transportation and logistics processes that affect the entire life cycle of our products — from the distribution of inbound materials to our manufacturing and fulfillment centers, to the delivery of our finished products to our customers, to the disposal and recycling of end-of-life systems. During the past year, our teams continued to do the following: •
Optimize our inbound, outbound, reverse and service transportation networks, focusing on using the most efficient use of air, land and ocean modes of transportation •
Work green initiatives that demonstrate that we recognize our roles and responsibilities in being good stewards of the environment •
Collaborate with the best logistics and transportation providers, who are focused on providing our customers with timely and damage-free deliveries and operate their businesses within the principles of environmental stewardship
Optimizing Transportation Networks
In every region across the globe, our GF&L teams strived to stay ahead of the challenges that were presented by the strategic changes within Dell's fulfillment model. We have exceeded our performance targets and this was done while transforming our supply chain and redesigning the end-to-end transportation network. We accomplished this feat through the implementation of globalized processes and tools. That work has allowed us to deploy new capabilities to support the timely and efficient distribution of our products to our customers.
For example, in the Americas, when some facilities were closed or their functions changed, our logistics team modified the transportation lanes from those facilities to our transportation and logistics partner networks and then to our customers. Furthermore, as we increased the production level of original design manufacturers (ODMs), we made more adjustments to the products. These adjustments added new carriers and transportation lanes from those ODMs to existing inbound transportation networks within those regions.
We expanded our relationships with more retail partners around the world. In the Americas, we optimized our outbound transportation networks to deliver retail products. In Europe, we have expanded fulfillment center distribution network for mainland Europe retail orders. In addition to the retail initiative in Europe, we were also able to reengineer our delivery model for accessories, reducing truckload volumes and fuel consumption. At a larger scale, the EMEA parcel delivery program also achieved financial and environmental success. In Australia and New Zealand, our multipack program has had a positive impact toward our global objectives by reducing waste. These examples can be viewed as a sample of global initiatives that support our objectives. These initiatives allowed the consolidation and completion of retail orders closer to end customers, thus reducing the travel distance, fuel consumption and carbon emissions across the world.
Our Dell Logistics teams continued to explore the use of every mode of transportation and sought opportunities to ship more freight using modes that offer greater reduction in fuel consumption and carbon emissions. Our regional teams examined the ability to upgrade the attach rates for freight, which was best moved by sea instead...
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