DHL Supply Chain has signed a new five-year global contract with industrial machinery maker JCB to provide logistics support for global manufacturing inbound supply and aftermarket, including inter-company shipments.
Joannes Van Osta, general manager, Group Transport and Logistics, who initiated and led the development of the contract, told Automotive Logistics that the implementation was going well since his handover earlier this year.
“[It is] delivering the anticipated benefits,” he said. “The contract is long-term, global and based on a 4PL/LLP set-up, which includes a gain-sharing mechanism.”
Van Osta went on to say that JCB had been through a thorough selection and detailed evaluation, involving a large number of local and global players in the market.
“DHL Supply Chain was identified as the preferred partner to implement this truly global LLP programme for JCB,” he added
DHL was appointed JCB's lead logistics provider last year, with responsibility for managing global inbound material flow from international suppliers to its local manufacturing and aftermarket supply.
Earlier this year JCB recorded an increase of revenue in 2010 of $3.2 billion, up from $2.2 billion in 2009. In 2010 JCB sold 51,600 machines compared to 36,000 in the previous year.
The return to growth has led to new investments in facilities around the world including a new £63m ($100m) factory in Sorocaba, Brazil that will produce excavators and backhoe loaders as well as a new £19m engine plant in Ballabgarh, Delhi.
In addition, a total of £19m has been invested in the expansion of JCB’s global service back-up, with the company opening its 16th parts warehouse in Prague to serve Central Europe and Poland.
As part of its provision for the new contract DHL has leased a 142,000ft2 warehouse in Fradley Park near Lichfield, 20 miles from JCB’s World Parts Centre in Uttoxeter, UK.
"The new facility will create a cross-dock for imported goods from worldwide suppliers, enable value-added activities including sequencing and kitting of parts, and create additional offsite storage," said a spokesman for DHL Supply Chain.
