Intel and DHLSC's European Expansion of Vested

John Hayes and Ruud de Groot were the leaders within Intel and DHL Supply Chain, respectively, who were tasked to come up with a new solution. Both wished to take their already good relationship to a higher level that would deliver innovation and transformative results to tackle the tough challenges in front of them. To accomplish this, they needed to do things differently.Hayes and de Groot looked to a pilot project in Costa Rica that had transformative results using the University of...
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John Hayes and Ruud de Groot were the leaders within Intel and DHL Supply Chain, respectively, who were tasked to come up with a new solution. Both wished to take their already good relationship to a higher level that would deliver innovation and transformative results to tackle the tough challenges in front of them. To accomplish this, they needed to do things differently.Hayes and de Groot looked to a pilot project in Costa Rica that had transformative results using the University of Tennessee's Sourcing Business Model called Vested©. John Hayes believed Vested provided a new way to reach Intel's objectives and was enthusiastic to try it. Ruud de Groot believed the project could be a blueprint for how to create a true win-win relationship with a strategic customer. There were skeptics of course. Many people who believed the Costa Rica Vested pilot project was only successful because it addressed "low hanging fruit." Todd Shire and Doug Whaley (leaders of the Costa Rica pilot) felt strongly Vested could do well in any circumstance. The Netherlands' situation featured a healthy relationship getting great results. The question became, "Could Vested succeed in moving the Intel DHL Supply Chain EMEA relationship from great to transformational?"Three years later, Hayes and de Groot have answered the question with a resounding "YES". Intel's primary concern of zero impact on customers has been met with a 100% satisfaction score. The Customer Excellence Score went from 93% to 99%. And even though DHL Supply Chain experienced a 45% cut in revenue associated with the drop in volume, innovation increased. And, as innovative solutions flowed consistently, the parties moved toward more transformational objectives. Indeed, what began as an experimental pilot has evolved into a best practice. The rest of this case study shares the Intel DHLSC journey into Vested as they tried and succeeded in doing things differently.