Sun Microsystems Selects Global After-market Service Parts Logistics Provider

Technology company to use DHL for services supply chain, IT solution for after-market services

Technology company to use DHL for services supply chain, IT solution for after-market services

Plantation, FL — August 1, 2005 — Logistics company DHL today said it has been selected by Sun Microsystems as its exclusive global logistics provider for after-market service parts.

According to the agreement, Sun, a technology developer, will use DHL's international network and its knowledge of logistics, express shipping, and air and ocean freight for a global logistics solution customized to Sun's business requirements.

The contract is expected to involve over 300 logistics facilities housing thousands of parts to be used for service support to 1.5 million Sun customer systems in over 100 countries.

"As a truly global technology company, our objective was to identify a global logistics provider with the infrastructure and expertise needed to deliver a supply chain solution to serve our customers in every corner of the world," said Brad Schultz, vice president, Services Readiness & Operations, Sun Microsystems. "After a rigorous selection process, we concluded that DHL was the provider offering the right blend of global resources, information technology capabilities and dedication to customer service that our business demands."

The new three-year agreement builds upon the success of the existing relationship between the companies in the Asia Pacific region, where DHL Solutions has been Sun's service parts logistics provider for the past four years. The new agreement extends this relationship to encompass management of Sun Microsystems' after-market service supply chain on a global basis.

DHL Solutions, the global contract logistics division of DHL, will manage and implement the agreement, while DHL Global Customer Solutions (GCS), the company's global sales and relationship management team, will provide customer coordination on a worldwide basis across DHL's network.

Under the agreement, Sun Microsystems' corporate customers will have access to a single, consolidated provider versus multiple providers across the globe. Also, parts orders received by Sun and DHL service centers will be routed to the most appropriate local DHL facility anywhere in the world, from where replacement components will be packed and shipped to Sun engineers in the field, typically within a two- to four-hour window.

As part of the agreement, DHL will co-develop a global IT architecture specifically designed for service parts logistics management. The IT system is expected to allow Sun to eliminate a number of existing regional legacy IT systems and enable the company to globally monitor and manage its entire worldwide service parts inventory and customer order processing in real time. The new systems should also enhance Sun's ability to optimize its global supply chain, minimize inventory investment and ensure the delivery of consistently high customer service levels while controlling costs.