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TNT Japan secures inbound logistics contract with Mitsubishi Motors

23 June 2005 - 11:10 CET

Mitsubishi Motors Corporation Japan (MMC) has selected TNT in Japan as its Lead Logistics Partner for its inbound logistics processes of non-powertrain components sourced from overseas suppliers. The contract is valued at 10 million Euro over 3 years.

As part of the new agreement, TNT Japan will be responsible for all aspects of the inbound supply chain including distribution of purchase orders to MMC suppliers, door to door movement of components from suppliers in Asia, Europe and the America's to TNT managed distribution centres in Japan and final line-side delivery to 2 MMC plants in Japan.

Mitsubishi spends nearly 1 billion Yen annually on the shipment of over 400 types of parts produced in Europe, the US and Asia outside Japan. With the TNT solution MMC expects to save 10% of this logistics cost.

"This agreement marks TNT Japan's first success in Automotive Logistics and the first major logistics contract outsourced by MMC, in Japan, to a non-Japanese provider", says Keita Sugihara, Automotive Business Development Manager of TNT Japan. "MMC was convinced of the future benefit of synergies between TNT operations in Japan and existing TNT Logistics partnerships with MMC in Thailand, Australia and North America."

Akira Takenaka, TNT's Contract Manager for the MMC Operations indicates that one of the reasons that TNT was selected is the visibility and optimisation that TNT Logistics' MatrixTM technology brings to the MMC supply chain. TNT Logistics developed a range of supply chain management, inventory control, transportation, warehousing and route planning software that optimises material and information flows. MatrixTM is the applications infrastructure that brings these components together. In this way it integrates all supply chain partners thus improving communication and visibility in the supply chain."