TNT Logistics wins 34 million Euro contract in Latin America

TNT Logistics has won a Euro34 million contract in Latin America. The company has signed an exclusive three-year contract with CNH Group (incorporating Case, Fiat Allis and New Holland) to design and manage an integrated logistics operation within Latin America. The Euro34 million contract covers the outsourcing of CNH’s entire Logistics activities to TNT, ranging from the import of spare parts and materials, to the warehousing and distribution of finished products and spare parts for the dealer network throughout Latin America.
CNH was established in 1999, through Fiat SpA’s Euro7.6 billion acquisition of Case Corporation, representing one of the biggest acquisitions ever made by Fiat. Last year, worldwide revenues of CNH exceeded Eurol 1.7 billion. The CNH Group is now the largest company of its kind in Brazil, incorporating Fiat Allis and Case brands for construction machinery, and New Holland and Case IH for agricultural machinery. CNH estimates
that 2001 growth in Brazil will be 10 to 15 per cent over the Euro8S2 million registered in 2000.
“I believe that our partnership with TNT will offer us the best available practice in the logistics sector, providing a high level of satisfaction for both companies,” says Eduardo Teodorani Fabbri, the Logistics vice-president of CNH Group.
TNT Logistics Brazil has been working for New Holland and Fiat Allis since 1998. With the launch of the new CNH Group, TNT will be taking over the Group logistics activities for all three partners in Brazil. TNT’s first task will be the creation of a 25,000m2 distribution centre in São Paulo. The warehouse will integrate the spare parts flows of the three brands; TNT will be in charge of warehousing and distribution to both national and international markets. Additionally, TNT will provide air transport through its partnership with TAM, guaranteeing distribution to dealers throughout the country within 12 hours.
“It’s an exciting opportunity for us to design and operate a logistics system that merges three company flows, creating greater efficiencies and higher performance levels, thereby bringing substantial benefits to our client,” says Gianfranco Sgro, TNT Logistics managing director in Latin America.