DHL takes over warehouse management and European shipments for paint and lacquer manufacturer J.W. Ostendorf

On July 1, 2009, DHL Supply Chain began to perform all logistics services for the J.W. Ostendorf (JWO) group of companies. Deutsche Post DHL's specialist for integrated logistics solutions is operating the Coesfeld distribution center.

The services also include providing do-it-yourself stores and specialty retailers in more than 20 European countries with paints and lacquer products from the manufacturer based in northwestern Germany. Under the multiyear contract, 120 employees at the Coesfeld location are transferring to DHL.

Integrated logistics solution

In taking this step, JWO is strengthening its logistics along with its core skills in production, technology, marketing and sales. In explaining why DHL was selected, Heinz Rothues, Managing Director of Engineering at JWO, said: “To assist our customers, we have taken our supply chain into a new dimension of service and quality leadership by setting up this partnership. Together with the international logistics service provider DHL, we will set standards that will give us a clear edge over our competitors.”

To achieve this, state-of-the-art technologies and systems will be introduced in all areas. In one example of this approach, inventory management will be conducted according to category management criteria that not only facilitate optimal inventory operations but also support holistic customer monitoring. Overarching management of the supply chain also includes tracking and tracing of shipments as well as continuous optimization of orders and shipments. In addition, regular vendor appraisals (balance score cards) ensure the very best customer support at JWO.

Improvements to warehouse and transport processes

Michael Engler, head of technology, automotive and industry area at DHL Supply Chain in Germany, said: "In establishing this partnership with JWO, we are further expanding our position as the leading logistics solutions partner in Europe. Working with our customer, we will further improve warehouse and transport processes and put an integrated logistics solution into place." Among their goals, JWO and DHL intend to expand the distribution center into a "multi-user location" for a variety of manufacturers. This will include bundling the shipments of several suppliers. At the same time, DHL's flexible network enables JWO to respond to individual and changing needs of its customers.

The family-owned company, JWO built Europe's most state-of-the-art distribution center for complementary do-it-yourself stores logistics in Coesfeld in 2008. In the first stage of project, a location with more than 30,000 m² and 60,000 palette positions was erected. It can be expanded by 50,000 m². DHL Supply Chain, the specialist in integrated logistics solutions, is responsible for the warehouse operations. DHL Freight, the service provider for European ground transports, is handling the distribution for Germany and Europe.