Airbus Picks Kuehne + Nagel, DHL as Lead Logistics and Transport Providers
According to Fabrice Bregier, Airbus COO, "The optimization of our supply chain and logistics by defining one lead logistics provider and one lead transport provider is an essential step towards to increasing our efficiency and delivering on our Power8 targets. This new way of working will greatly contribute to securing our global competitiveness."
The new Airbus strategy has Kuehne + Nagel consolidating all local warehouse facilities into six regional hubs, encompassing more than 150,000 square meters by 2010. As lead logistics provider, Kuehne + Nagel will run a pan-European network of logistics hubs storing aircraft equipment, parts and raw materials to serve Airbus production lines. The hubs are located in Hamburg, Germany; Toulouse, Nantes-Saint Nazaire, France; Madrid, Puerto-Real, Spain; and at Broughton; in the UK.
“This partnership is a revolutionary innovation in integrated aviation logistics. The advantages will go well beyond the cost savings of consolidation, standardization and benchmarking towards a seamless integration of suppliers into an extended Airbus supply chain,” claimed Dirk Reich, Kuehne + Nagel executive vice president Contract Logistics and member of the company’s International AG Management Board about the six-year contract. “We are convinced the concept will provide a tangible competitive advantage for Airbus and its partners. The high demands of Airbus in terms of accuracy, safety, dimensions, variety and distributed networks, make this contract unique and give a clear signal to other industries.”
As a Tier One Airbus partner, DHL will implement its full transportation system, 4PL control tower and optimization program to streamline the flow of materials to Airbus manufacturing plants. The Control Tower will manage a significant part of inbound transportation including air and ocean freight, road freight, customs and value added services.
Airbus explains that International Commercial Terms (Incoterms) will be harmonized to one common FCA (Free Carrier) standard, allowing better integration, rationalizing of capacity and better tracking of items. Shipments of Airbus aircraft sections by air, sea and road are not part of the DHL contract.
'We are delighted to foster closer partnership with Airbus with this significantly enlarged business portfolio,” observes Rolf Habben Jansen, CEO, Global Customer Solutions, DHL “This win is a testimony of our relentless focus on delivering the best for customers like Airbus."
