Thursday, February 28, 2013

Truck Logistics Contract with Freight Forwarding Group Renewed

K + N Secure Extension to Iveco Agreement
Shipping News Feature

EUROPE – Fiat’s truck division Iveco, has extended its service contract with freight forwarding group Kuehne + Nagel for another three years. The two companies have been cooperating for 12 years during which the logistics provider says it has aimed to develop a culture of improvement by optimising and introducing innovative processes and tools such as RFID technology to stay ahead of developments in the market.

Kuehne + Nagel manages five regional spare parts distribution centres for Iveco: Turin (Italy), Langenau (Germany), Madrid (Spain), Trappes (France) and Winsford (UK). The service portfolio includes goods-receiving, storage, picking & packing, distribution as well as the handling of returns, encompassing re-packing and re-labelling. Another key factor is the overnight distribution of spare parts via Kuehne + Nagel’s specialised automotive distribution network throughout Europe.

An important element of this logistics offering is the complete integration in the internal preparation cycle of the thermic treatment process for wooden packages for shipments destined beyond European territories, as per the International Standards for Phytosanitary Measures (ISPM15). This allows remarkable savings in terms of time and cost reduction as it eliminates further operating charges such as double handling and reduces order cycle timing.

The company has also implemented an automated storage and retrieval system for small and medium sized components, resulting in an ‘error free’ preparation process. The business currently covers the management of 300,000 square metres with a capacity for as many as 160,000 stock-keeping units per depot. Some nine million order lines - ranging from small components to entire engine blocks and cabs - totalling well over 60,000 tonnes of incoming and outgoing cargo are handled per year. Ruggero Poli, National Manager of Kuehne + Nagel Italy said:

“The extension of the contract by Iveco clearly recognises our expertise in the field of automotive contract logistics and our strong skills in supply chain innovation and continuous process improvement. We are proud to have been chosen again by Iveco as their preferred logistics partner in Europe.”