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TNT Logistics Brazil invests €5.3 million in a new solution for General Motors

03 August 2006 - 11:49 CET

TNT Logistics is investing €5.3 million to comply with GM's new agreement, of which €4.3 million are for the construction of a 13,500 m² warehouse, and €1 million are for equipments, storing structures and Warehouse Management System (WMS) implementation. After August, all the car manufacturer warehousing, consolidation and sequencing activities of items such as engines, batteries, wire harnesses and rugs, originated in the Southeast region, will be transferred to the new estate. These activities are presently made in GM's plant located in the same industrial complex. In the new warehouse, TNT will also be responsible for the logistic services integration with the activity of engines sub-assembling.

Since 2000, TNT Logistics is responsible for the line feeding of GM Plant located in Gravataí, and in 2003 GM showed signs that in the future its plant would become more complex, demanding more space both for warehousing and production lines expansion. After identifying this need, TNT Logistics, jointly with GM, began to study a solution that could meet GM's expansion plans.

'The quality of the technical proposal, TNT Logistics' flexibility to adapt to the client and the international relationship were important factors in the negotiation. Besides, we will perform the integration of logistics activities with the engines sub-assembly, a new challenge to TNT Logistics", explains Giuseppe Chiellino, Managing Director TNT Logistics South America.

The suggestion offered by TNT to transfer the whole stock, besides the consolidation, material sequence services and the engines subassembly from the current plant to a new warehouse located nearby, will liberate space for GM production lines and provide gains in synergy. "The operation proved to be more rational, economical and safe, as the personnel and stock, which were spread throughout GM's plant, will be concentrated in one single place", completes Chiellino.