DHL Express signs three-year Saudi deal with Nokia

DHL Express has signed a three-year deal with telecommunications company Nokia Siemens Networks to establish a nationwide distribution system in Saudi Arabia. The agreement will see the Deutsche Post DHL unit providing storage and inventory management as well as delivery of mobile phones and spare parts, promising guaranteed delivery service anywhere in the country within specific 2-6-hour windows.

The logistics provider will also coordinate customer service activities through the management of the Nokia Siemens Networks call centre in Dubai.

Under the new partnership, the existing 10 sites where Nokia Siemens Networks manages its spare parts in Saudi Arabia will be relocated to DHL Express sites at Riyadh, Jeddah and Dhahran. DHL said it will set up a “highly efficient” warehouse system to ensure inventory accuracy, visibility and accountability.

The telecom firm manufactures and ships its spare parts from Eastern Europe and China to Saudi Arabia through the DHL global network.

Andreas Fuentes, hardware services operations manager for the Middle East Centre for Nokia Siemens, said the two companies had already been working together in Saudi Arabia for five months, during which DHL demonstrated “tremendous experience and knowledge” in running the telecom firm’s distribution system.

“The team has truly embodied the ‘can do’ spirit, despite various challenges, and maintained clear lines of communication throughout the process,” said Fuentes, adding that he was confident DHL could provide a cost-efficient, quality service for his customers.

DHL said the deal with Nokia was part of a growing trend of IT and telecom companies to outsource their spare parts logistics operations to focus on their core business.

Nour Suliman, CEO of DHL Express for the Middle East and Africa, said: “With strong domestic network coverage in Saudi Arabia, DHL is well-positioned to deliver an efficient and effective distribution system for Nokia Siemens Networks.”