DHL, the world’s leading express and logistics company, and its long-time partner Microsoft Corporation, have successfully collaborated on the launch of the Xbox 360, as thousands of Xbox 360s have been distributed simultaneously in Europe and North America.

For gamers, the holiday season marked the start of a long-awaited adventure. For those working behind the scenes, the historic 22 November 2005 Xbox 360 product launch in the United States and the 2 December 2005 European rollout culminated a year’s worth of planning and execution dedicated to one objective: Moving Xbox 360s across three continents, on time and on schedule. “Delivering the Xbox 360 project is testament to DHL’s capabilities to execute the rollout of one of the most high profile product launches in the world with flawless accuracy, transparency and speed,” said Paul Coutts, Senior Vice President, DHL Global Customer Solutions, Asia Pacific. “DHL and Microsoft are strong partners. Over the years, we have consistently exceeded our customer’s expectations and have grown together to bring exceptional customer experience to Microsoft and its customers.”

The Xbox 360 project drew upon 15 years of collaboration between DHL and Microsoft, which included the highly successful rollout of the first Xbox console in November 2001. Knowledge of each other’s systems and processes played a vital role in expediting the Xbox 360 launch schedules, reducing implementation lead times, and meeting strict deadlines.

The milestones of the Xbox 360 project include:

Enhancement of a trans-Pacific rail-steamship service where ocean freight shipments entering the Port of Los Angeles from Hong Kong were met at the docks by dedicated trains that carried consoles and accessories directly to Microsoft’s North American distribution center in Memphis, Tennessee. The service shaved several days off the standard transit times, and ensured predictable and cost-effective deliveries to support the initial rollout and subsequent replenishment of inventory.

A unique aircraft loading solution for European air consignments, enabling Microsoft to fully optimize the space aboard each aircraft without compromising the integrity of Xbox 360 units. As the pallets’ original height prevented them from fitting in the lower deck area of the aircraft, DHL developed a program to “down-stack” each pallet at origin, load them securely into the aircraft belly for flight, and re-build the pallets into their original SKU configuration at destination. ? The enhancement of DHL’s sophisticated event management tool that seamlessly connected Microsoft with suppliers, contract manufacturers, carriers and even other transportation providers, to deliver near real-time visibility of in-transit inventory.

Launch planning began in November 2004 when both companies mapped out shipping strategies and laid the foundation for the robust IT network that would serve as the project’s central nervous system. By August 2005, with the first of the Xbox 360s ready to ship, the project shifted into high gear.

EDI messages from production sites in southern China enabled Microsoft and DHL to pro-actively update status information and maintain real-time visibility as XBOX 360s rolled off assembly lines onto barges bound for Hong Kong’s Chek Lap Kok airport. As consoles and peripherals were loaded aboard charters, the DHL system automatically triggered “Advanced Ship Notices” to the U.S. and European distribution centers, providing the receiving points with the time to efficiently pre-plan their capacity needs. At each step in the process, DHL’s automated systems validated all shipment load information, guaranteeing the appropriate volumes of Xbox 360 units were delivered to the proper destinations at the agreed-upon times.

To ensure proper redundancy, DHL created back-ups of each message transmitted. Supporting the initial launch phase, DHL’s regional team in Singapore led the implementation project deploying multiple Boeing 747 freighters procured by Microsoft to transport consoles from Hong Kong to the main distribution centers in Memphis and Dueren, Germany, 60 kilometers from Cologne. DHL staff in Hong Kong also arranged for commercial airlift to ship thousands of kilos of Xbox 360 peripheral equipment such as controllers, cables and other accessories to North America and Europe.

DHL in Seattle and Cologne performed custom clearance and synchronized deliveries with Microsoft’s distributors to ensure that sufficient high-security trucks were positioned to deliver the consoles from the airport to Microsoft’s distribution centers in Memphis and Dueren. In Cologne, DHL organized truck deliveries from Microsoft’s distribution center to retailers across the continent.

The joint Xbox 360 effort is far from over. Charters continue to arrive in the U.S. and Europe. DHL has purchased significant ocean freight capacity to move the consoles and peripheral equipment long after the initial launch, and will continue to support the Microsoft roll out of Xbox 360s around the world. DHL and Microsoft are also now working jointly on implementing a new warehouse in Southern China to support fulfillment of Xbox 360 in Asia in 2006 and beyond.

“What we learned from the Xbox 360 project is that an agile supply chain one that employs a mix of transportation modes — is an effective solution to the challenges of executing a global product launch and on-going replenishment activities,” said Bill Best, Senior Logistics Manager at Microsoft. “DHL’s sophisticated IT tools will be leveraged in future projects to power Microsoft’s supply chain and enhance its competitiveness. We see DHL’s solution as an enabler of future success, and we envision a deep integration of DHL into our processes as a result.”

Source: Indiainfoline

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