TNT Logistics North America and BMW expand partnership into Lead Logistics Provider Agreement
14 May 2002 - 15:32 CET
TNT Logistics North America, one of the nation's leading providers of value-added logistics, announced today that it has been awarded a multiyear, multimillion dollar contract to manage BMW Manufacturing Corp.'s inbound supply chain in Greer, S.C. The announcement continues a successful partnership that has existed since 1993 when BMW built its first production facility in the United States.
The agreement calls for TNT Logistics North America to expand its plant-centric logistics support services to include transportation and inbound supply chain management that will provide BMW critical visibility of its in-transit materials for every production process. The BMW/TNT agreement is a premier example of a progressive vehicle manufacturer partnering with a 3PL to optimize the "entire" inbound supply chain. "We are pleased that TNT is expanding its relationship with BMW in North America," said Jeffery D. Hurley, Senior Vice President, Operations for TNT Logistics North America. "Together, BMW and TNT will implement a logistics network that targets improvements in manufacturing for BMW and reducing costs."
TNT operates two material processing centers totaling 600,000 sq. ft. supporting BMW's production of its X5 Sport Activity Vehicle and Z3 Roadster. One facility functions onsite where materials are managed by TNT using ASRS (automated storage and retrieval system) and delivered to specific line locations. The other logistics facility is offsite where materials are sequenced and shipped to BMW's assembly plant.
The supply chain contract calls for TNT to manage material flow from all suppliers to the materials processing center and to the plant. TNT's Supply Chain Execution technology is a vital component supporting BMW's Materials Management process. It provides real-time materials status - proactive information critical to BMW's productions schedules.
