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Pirelli Spain selects TNT Logistics Spain for another three years

14 February 2006 - 12:23 CET

Pirelli, the Italian-based multinational with a long-standing track record in the manufacture and marketing of high quality tyres, has chosen to consign its logistics operations for another three years to global provider and leader in integrated supply chain solutions TNT Logistics in Spain. The extension of the contract underlines the partnership between the two companies that was launched four years ago.

Under the conditions of the contract, TNT Logistics will manage the factory warehouse at Manresaand two national distribution centres near Madrid and Barcelona. TNT Logistics will be responsible for reception of tyres from plants in various countries. As part of the service provided, TNT Logistics will store the tyres and prepare orders for 24-hour distribution to Pirelli customers throughout Spain. This service includes order administration and tracking of shipments.

One of the reasons for Pirelli Spain to select TNT Logistics is TNT's culture of continuous improvement, which Pirelli has experienced over the last four years. TNT Logistics has evaluated its operations for Pirelli on a regular basis, thus identifying ways to improve quality and reduce costs.

In 2005, the Pirelli operation in Spain was the first to benefit from the implementation of "lean warehousing", as part of a global initiative. This method seeks to increase productivity, reduce costs and improve service by eliminating waste in the logistics processes. Such optimisation can be achieved only through a strong sense of commitment and close co-operation between all parties involved.

Improvement goals for the new three-year period include implementing new software for transport and warehouse management (MatrixTM and Dispatcher, respectively), continuing to develop lean principles and re-engineering the layout. International best practices are being implemented also.

Francisco Bernal Melgar, General Manager of TNT Logistics Spain, says he is very happy to further develop the relationship with Pirelli. "To win this contract, we had to compete against other companies in an exhaustive tendering process characterised by very high technical demands. The contract was ultimately awarded to us for our innovative offering, Pirelli's confidence in our high quality standards based on the services we are currently providing, and the good price-quality ratio," said Francisco Bernal Melgar. In October 2005, Pirelli - a firm greatly focused on the quality of its products and services- recognised TNT Logistics' factory warehouse at Manresa as the one that registers the lowest incident rate in consignments worldwide.

TNT Logistics is the global number one provider of tyre logistics.