When CIBA Vision focused on their distribution into New Zealand, they chose their Trans Tasman partner carefully. With a dedicated Trans Tasman team DHL was able to save time, reduce cost and ultimately improve customer service.
Business Snapshot
CIBA Vision, the eye care unit of Novartis AG, is one of the world’s leading providers of breakthrough eye care products. CIBA Vision’s Australian business distributes to both New Zealand optometrists and consumers.
One Direct Distribution Model – Two Key Benefits
When CIBA Vision closed their Third Party Logistics (3PL) warehouse and commenced delivering directly to consumers in New Zealand early in 2010, they chose DHL Express to deliver two key benefits:
▪ a reduction in customer delivery times
▪ a saving in distribution costs
Underpinning CIBA Vision’s competitive differentiation was a commitment to a high level of service with an extensive range of products at a lower end-to-end cost. DHL Express helps them maintain this advantage.
The Three Costs of Third Party Logistics (3PL) for CIBA Vision
Prior to partnering with DHL Express CIBA Vision was using a third party to uplift stock to New Zealand from Australia, and then cross dock in New Zealand from their warehouse. The cost of using a 3PL provider added up for CIBA Vision by:
▪ tying up money in inventory in New Zealand
▪ losing time in a multi-point distribution channel
▪ writing off obsolete New Zealand stock
“There have been good cost savings with DHL Express, especially when we look at our total end-to-end cost, including the cost of carrying stock in New Zealand and the cost of stock write-offs,” said Regi Abraham, Demand Planner at CIBA Vision.
Meeting a Service Promise with a Delivery Expectation
Now that CIBA Vision uses the DHL Express direct distribution model they provide their customers with a maximum two-day delivery service promise from Australia to New Zealand. Before it was a five to six-day service. Time is now CIBA Vision’s main point of differentiation in the market place, along with the ability to offer customers free shipping when they spend $20 or more, or order their product online.
A Dedicated Team for a Seamless Transition
DHL’s dedicated team worked closely with CIBA Vision to ensure a seamless transition from their 3PL solution to dedicated direct distribution. The team comprised of:
▪ Account Manager
▪ Key Account Desk
▪ IT support
▪ eComm support
Systems are only part of the story, DHL provided training and support to the key staff within CIBA Vision and ensured an open line of communication at all times, before, during and after the transition.
“Changing suppliers is usually a major issue for us, with IT being the main hurdle, but we received all the help we needed from the DHL team,” said Regi Abraham, Demand Planner at CIBA Vision.
Save Money, Gain Time, Talk to DHL Express Today
Talk to your sales representative today, or call Customer Service on 13 14 06 (Australia) or 0800 800 020 (New Zealand), to save time and money through one direct distribution solution.
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