Page 15 - Case Study Annual 2018

LAA Platinum Award

availability and quality of address data; variability in
demand; and cost to serve. The deliverables were
agreed as follows: Speed to market; aff ordability
and sustainability; customer experience lifecycle;
and diff erentiation through innovation.
DSV investigated multiple options, but none of
the options available at the time addressed all four
deliverables convincingly, and a decision was made
to widen the territorial scope to understand what
else was available in other geographies.

The solution
As part of a planned visit to the UK in late 2013,
DSV discovered a smart locker product by
the name of ByBox. It was used as a means to
effi ciently distribute parts to technicians. Upon
receiving a request, the 4PL would deliver the
parts to the locker closest to the technician’s home
before 8am, the technician would then start the
day at the locker as opposed to a warehouse, Locker® and has further developed the product
thereby avoiding the need to travel to and from to cover a range of industries and needs, namely
warehouses and queuing for parts. The solution in e-commerce, in-fi eld technician service, education,
its current form was not a perfect match, but could accountable mail and fi nancial services.
work if applied diff erently.
DSV conducted a study using existing client The way forward
data to understand the impact of an online order To date, the project has resulted in the 19 dedicated
delivery to a smart locker as opposed to a physical resources ranging from sales, customer service
address, whilst meeting the prescribed criteria. staff to staff responsible for the installation of
Using the initial number of simulated lockers (33) lockers as well as maintenance. The company
it was found that they could reduce the cost of envisages this number to increase to 23 by the end
service to the client by as much as 5.9 percent, of 2019. Furthermore, it has upskilled and trained
whilst at the same time address each of the four approximately 250 drivers and operational staff on
risks. Increasing the number of simulated locker smart lockers and business-to-consumer disciplines.
locations to 69 produced an even greater saving of This number is expected to increase to 300 by June
8.8 percent. 2019.
The fi ndings were enough to motivate DSV From an environment perspective the smart
to purchase the fi rst four lockers, import them locker project has enabled approximately 12 million
and expose existing clients to the concept to South Africans to make the environmentally
gauge the viability of the concept as well as to friendly choice by sending parcels through a
identify partners in the B2C sector. In May 2015, locker; this number is expected to grow to 21
DSV deployed its fi rst dedicated solution to million by June 2019 and has contributed to saving
Makro, serving online customers in the form of the environment roughly 4,000 tons of carbon
an alternative delivery and collect option at a omissions at 16 percent locker utilisation, which will
competitive rate. grow to a staggering 12,000 tons per annum by
Shortly after, DSV started manufacturing lockers mid-2019.
locally to meet demand and keep costs down. DSV DSV has recorded exponential direct return on
implemented its fi rst business-to-business solution investments in the form of R10m since inception
for Nashua in July 2015, serving technicians in the with a forecasted return of R23m for 2019 on its
form of effi cient parts distribution through lockers, own. This goes hand in hand with existing eff orts to
which later also included a return option for used increase the locker footprint to 304 lockers by June
parts. DSV has since renamed the product to DSV 2019. •

The Logistics News Case Study Annual 2018 13