Tuesday, April 30, 2013

Freight Forwarding Outfit Acquires Both Logistics Contract and New Subsidiary

North and Central American Developments for DB Schenker
Shipping News Feature

US – PANAMA - Spirit AeroSystems, which designs and manufactures non-OEM (not original equipment manufacturer) parts for aero structures used in commercial, military and business/regional jets, has confirmed DB Schenker as the lead logistics provider for its Spirit Distribution Center which handles goods emanating from the company’s Tulsa manufacturing site. Meanwhile the freight forwarding outfit continues to reinforce its presence in Central America.

The 9,000 square metre distribution centre for the Spirit Tulsa Manufacturing Site is the second of its kind, based after the Spirit Distribution Center in Wichita, Kansas, where DB Schenker was similarly appointed as the logistics provider at Spirit’s Wichita fuselage manufacturing plant. The contracts for both distribution centres in Tulsa and Wichita includes consolidating inventory from multiple manufacturing locations to a centralised distribution location, storage and production line side delivery, sophisticated kitting operations as well as Transportation Management services.

  In 2011, both companies signed a 10-year contract extending DB Schenker’s role as fourth-party logistics (4PL) manager for inbound logistics and manufacturing support. Both continue to work closely to ensure operational efficiency and continuous improvement. The contract relationship started in August 2006 following Spirit’s spin-off from Boeing in late 2005. Charles McKinny, Spirit AeroSystems Vice President, Corporate Supply Chain Management & Global Strategy said:

“Awarding of the Tulsa DC is a result of DB Schenker/Spirit partnership forged over the past several years of providing world class service, while significantly reducing supply chain costs.”

Meanwhile in Panama, DB Schenker hopes to continue and expand the business in one of Central America’s growth markets under the name of Schenker (Panama) since with effect from March 22, the freight and logistics group acquired 100% of the shares of long-term partner Euro-Line Panamericana in that country. The new subsidiary will have its Corporate Office in Panama City, with a Branch Office in Colón Free Zone and a Field Office at the Airport.

Two warehouses in Colón Free Zone, with 1,500 square metres each, offer modern capacity for a wide range of services. Some 60 employees will be offering customised solutions for freight forwarding and logistics services, based on proven information technology. Panama is an important hub for regional distribution of freight in Central and South America and will be an important gateway for global DB Schenker key accounts. Dr. Thomas C. Lieb, Chairman of the Management Board and CEO of Schenker AG commented:

“A major part of the world’s future growth will come from markets in South and Central America. This is why we strengthened our presence in Panama. In order to provide our global customers with more high-quality services with a through-going standard, we plan to further strengthen our network in this interesting region.”

Photo: With the further development of the canal Panama is set to become even more key in terms of vessel and cargo movement than at present.