TPG and Fiat Auto renew spare parts Logistics contract
18 September 2001 - 16:32 CET
TPG and Fiat Auto have announced today that they have renewed for another five years the contract for packaging, storage and spare parts distribution to dealers in Italy and to the warehouses in Europe.
Fiat Auto with this renewal confirms the existing partnership between the two companies that started in 1994 with the outsourcing to TNT Logistics of the Fiat Spare Parts logistics. In recent years TNT Logistics has implemented a complete process re-engineering program that has allowed Fiat Auto and TNT Logistics significant cost reductions and major service improvements. Among the major achievements we have:
- Rationalisation of Italian Spare Parts Warehouses consolidating the operations in Reggio Calabria (1999) and Verrone (2000) into the Central Italian Warehouse complex (Turin).
- Introduction of an ¡n-night delivery service.
- Introduction of a new information system for all European warehouse operations with sophisticated warehouse management features on a web based platform (2001), and integrated with the distribution systems.
- Start-up of a new packaging centre in Mirafiori (1999).
- Introduction of a new European Distribution Centre in Vatry (France) that allows further cost reductions (2001).
The revenue from the contract is approximately Euro 150 million on an annual basis. The terms and activities covered by the contract are unchanged.
In addition to the spare parts logistics operations, TNT also manages for Fiat Auto the inbound logistics operations feeding the assembly lines of the Northern Italian facilities and manages the materials flow to and from South America for the parts needed for local production.
