TNT Logistics wins 34 million Euro Logistics contract in Latin America
13 July 2001 - 16:37 CET
TNT Logistics has signed an exclusive three-year contract with Case New Holland Group (CNH Group - incorporating Case, Fiat Allis and New Holland) to design and manage an integrated logistics operation within Latin America. The Euro 34 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 S.p.A.'s Euro 7.6 billion acquisition of Case Corporation, representing one of the biggest acquisitions ever made by FIAT. Last year, worldwide revenues of CNH exceeded Euro 11.7 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% over the Euro 852 million registered in 2000. In order to consolidate its operations in Brazil, the group will be investing Euro 125 million over the next two years.
"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 25,000 square metre distribution centre in Itu (San Paolo). Strategically located, 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 state-of-the-art air transport service, 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.
Adds Fausto Forti, CEO of TNT Logistics Southern Europe & South America, "The agreement with CNH confirms the success that our Brazilian Unit has achieved through operational excellence in the management of complex logistics contracts". Other customers of TNT Brazil include FIAT, GM, Iveco, Ford, Volkswagen, Renault, BMW, Agip and Clariant.
