TNT Logistics win contract to handle car parts for GM plants in Brazil
The division of the Dutch-based TNT Post Group, which supplants Ryder of Miami, Fla. in managing the supply chain of Brazil’s third-largest car manufacturer, expects the deal to add $2.5 million to its annual revenue, company executives said. (3/5/2002)
General Motors, which makes cars and trucks at two different locations in the state of Sao Paulo, will account for 20% of TNT’s local business. TNT’s local sales amounted to 200 Brazilian reels ($90 million) last year, up 64% in local currency terms. The subsidiary has forecast 15% growth in 2002.
TNT Logistics entered the Brazil market through a third party logistics contract with Fiat in 1997. It has focused on the automotive industry but is now trying to diversify its outsourcing activities. Late last year, it won a warehousing and distribution contract from Xerox.
TNT Post Group’s worldwide sales increased 12.8% last year to €11.2 billion ($974 million), 28% of which came from the fast-growing logistics division (the courier business accounts for 37% and post office activities for 28%). Peter Bakker, TNT’s chief executive, says that logistics will become the company’s prime source of revenue within five years.
