TPG to handle logistics operations for new VW in Germany

Mail, express and logistics company TPG N.V., through TNT Logistics Germany (Schrader Group), will take over the entire logistics operations for the production of the new Volkswagen Touran MPV (multi purpose vehicle). The Volkswagen Touran MPV, based on the new VW Golf V Platform, is manufactured by Volkswagen-subsidiary, Auto5000, in Wolfsburg, Germany, and will be on the market in spring 2003. Auto5000 and TNT Logistics will create more than 400 jobs, with this logistics services contract.

The five-year contract, with a total revenue of more than 100 million euros, will provide Auto5000 with an extensive range of logistics services from parts planning, stock management, line feeding and sequencing of vehicles to the production of specific kits. In addition, TNT Logistics will also manage the body parts and the inbound logistics for the body shop.

The Volkswagen Touran MPV is a new model in a number of respects. Volkswagen manager Peter Haartz’ “5,000 times 5,000” concept is embodied in the new Auto5000 business model. This business model is based on a new production principle including a material flow concept in modules and pre-assembled kits. It is a logistics operation with few interfaces, because all parts from suppliers are fed through one single logistics service provider.

According to TNT Logistics and Auto5000, an essential element of the new logistics concept is the division of the vehicle into a multitude of individual modules. Suppliers feed these modules to the assembly line “just-in-time” and in exactly the right sequence for the vehicles being produced.

This complex solution secures a leading position for TNT Logistics as one of Germany’s premier automotive inbound logistics suppliers. Eckard Schrader, member of the management team of the Schrader Group, explains, “Along with our partner Volkswagen, we are taking a new, innovative approach to inbound logistics, one in which the depth, complexity and interlinking will be groundbreaking in the automotive industry. Accordingly, our companies place a high value on this project”.

TNT Logistics Germany (Schrader Group) has been operating logistics solutions for Volkswagen in various manufacturing plants in Germany for thirteen years, including fully integrated logistics operations for the Volkswagen Sachsen plant in Chemnitz, where –amongst others– the new three cylinder engine for the Lupo model is produced.