MODO Eyewear Eyes Optimized Supply Chain

High-end eyeglass manufacturer turns to DHL to handle fulfillment, logistics operations as company targets rapid expansion

High-end eyeglass manufacturer turns to DHL to handle fulfillment, logistics operations as company targets rapid expansion

Plantation, FL — December 2, 2005 — High-end eyeglass company MODO Eyewear has tapped DHL to be its exclusive logistics provider, offering support for the entire MODO global supply chain as the company targets rapid growth in its sales.

With the new contract, MODO, a designer of high-end eyewear sold through high-fashion optical boutiques and retail chains across the United States, will rely on DHL for the importation of finished goods, inventory management, warehousing, pick and pack, labeling, track and trace, returns management and next-day delivery to meet its customers' requirements.

The agreement builds on an existing relationship with MODO to import finished eyewear products from factories in Japan, Italy and China and to expedite orders for U.S.-based customers. With volume expected to double in 2006, MODO was looking for a more efficient and effective supply chain and to quickly expand its warehousing and distribution capabilities. MODO chose DHL to facilitate an expanded logistics operation to improve its customer service.

"Given our desire to concentrate on our core competencies ... we are convinced that outsourcing with DHL is the best way to optimize delivery schedules and costs, manage the growth of orders and maintain an extremely high level of customer service," said Alessandro Lanaro, CEO of MODO.

With DHL's LOGIC warehouse management system, MODO sales and customer service staff will be able to enter automatically generated order "pick" tickets directly into their own order management system. With all orders shipped for next-day afternoon delivery, DHL will manage custom packaging, complete shipment paperwork and fulfill kitting instructions for MODO customers with special gift and promotional purchase packages. DHL will also provide MODO with real-time access to inventory and order delivery data to provide greater levels of service for its customers.

MODO will use DHL's Import Express service to deliver frames and other eyewear products to MODO's distribution facility located within the DHL "Optical Village." Located near Columbus, Ohio, Optical Village is a 3.5-million-square-foot facility designed to meet the manufacturing, packaging, storage and distribution needs of lens and eyewear companies. At Optical Village, lens and frame assembly and coating services are provided on the premises, resulting in lower inventory levels and related costs. Close proximity to the DHL air and ground hub in Wilmington, Ohio, affords overnight and same-day delivery every day of the year.

"Manufacturers today are focused on reliable service execution, but are also mindful that meeting customers' time-definite demands while managing costs requires strong logistics partnerships," said Shaun Hodges, senior director of North America sales and marketing for DHL Solutions, Americas. "With the right partner, inventory and distribution management outsourcing can result in greater levels of customer service for a host of industries."

DHL Solutions offers customized logistics solutions for the supply chain, ranging from consulting and supply chain design to warehousing, distribution logistics and order management.

Additional Articles of Interest

— Looking to outsource your supply chain? For five success factors for your outsourcing project Read "Rising to the Challenge of the Outsourced Supply Chain," cover story in the October/November 2005 issue of Supply and Demand Chain Executive.

— For seven tips to improve regulatory compliance, reduce operating expenses and streamline global supply chains, read the exclusive, "Cross-border Trade: Keeping on Top of Customs Regulations."

— For insights into how the top procurement organizations align with their company's broader business to make themselves invaluable, read "Getting to World-class by Getting a Seat at the Table," the Executive Memo column the October/November 2005 issue of Supply and Demand Chain Executive.