TNT Logistics expands services with BMW in North America

TNT Logistics in North America has announced that it has expanded its range
of services provided to BMW Manufacturing Co. in South Carolina, North
America. Beginning April 2004, TNT Logistics will manage the transportation
of finished parts from BMW’s supplier network to its parts distribution centres
(PDCs) located throughout the United States.

BMW began producing motor vehicles in North America in 1994 when it opened its manufacturing plant in Spartanburg County, S.C. Since the plant opened, TNT Logistics has provided line-side delivery to BMW’s production line, and short-term warehousing of parts and components. In 2002, TNT Logistics began providing inbound supply chain management for the plant, which includes inbound material control, transportation from suppliers to the plant.

“This change is a natural fit for BMW and TNT Logistics because many of the
production components and parts come from the same suppliers,“ said Debbie Hall, vice president of logistics solutions and development, TNT Logistics
North America. “We’ll be creating efficiencies for BMW because two
transportation processes can now become one.”

Prior to this change, BMW would notify its suppliers that after-market parts
were needed at its parts distribution centres and those suppliers would
contact a BMW-approved carrier for pick-up. Now that TNT Logistics will
provide pick-up for all orders, the need for this additional step will be
eliminated.

“Initially, TNT Logistics will manage 230 part numbers coming from our top 24
suppliers,” said Brenda Cox, department manager for technical parts and stock management within the Americas for BMW. “As the program matures, we expect that all suppliers will provide us with aftermarket parts through this distribution channel. Beyond the cost savings, we expect the process will be greatly simplified by using one service provider instead of multiple.”

“In addition to transportation to the PDCs, TNT Logistics will also be providing in-transit visibility and exceptions management communications on these parts,” Hall added. “This is a level of information that BMW did not previously have for this part of their supply chain.”