DHL Supply Chain secures a 3 year distribution of tyres to Bridgestone’s customers

• DHL to manage two warehouses, one new site in Gothenburg and the existing Jonkoping site as part of a three year deal
  
• DHL to provide National distribution of tyres to Bridgestone’s customers via DHL’s Freight network
  

Stockholm, 23 December: DHL Supply Chain has been awarded a three year contract extension to the existing warehousing operation in Jonkoping and a new contract to set-up and manage specialized off road tyre operations from a 6,000m2 site based in Gothenburg. DHL Supply Chain has also been awarded a contract to distribute tires in Sweden to Bridgestone’s wholesale, retail and OE customers.

Bridgestone was keen to award all contracts to one service provider to simplify communication channels and to increase operational efficiency and flexibility. DHL Supply Chain will act as a single point of contact for Bridgestone across both DHL Supply Chain warehouse operations and the DHL Freight contract for distribution.

A strong relationship has developed between the two organizations since 1983, when DHL was first awarded the contract to provide warehouse services to Bridgestone Sweden.

DHL Supply Chain has responded positively to Bridgestone’s change in supply chain strategy for the Nordic region and will provide Bridgestone with a higher density, reduced warehousing footprint at the existing Jonkoping operation. DHL Supply Chain will continue to provide the same scope of warehouse services but the link with DHL Freight for tyre distribution will provide Bridgestone with an immediate benefit of a later sales order cut-off time.

During early 2014, DHL Supply Chain will replace the existing warehouse management system for its preferred Red Prairie warehouse management system which has the added benefit of controlling FIFO based on DOT (date of tyre production).

At the new 6,000m2 operation based in Gothenburg, DHL Supply Chain will receive large tyres (off road tyres) in containers received directly from the Port of Gothenburg. These large off road tyres require specialized handling and storage equipment before order picking for loading onto DHL Freight for shipment into Volvo OE production facilities in Arvika and Braås and other key Bridgestone customers throughout Sweden operating  mining and heavy construction equipment.

David Clarke, Logistics Manager, Bridgestone UKIN, said: “we have had a long standing partnership with DHL and they have always provided good warehousing services for Bridgestone in Sweden and we are confident that the combined operations under one logistics provider will enhance our service to customers. DHL’s focus on planning and project management gives me confidence for a successful opening of the Gothenburg warehouse and seamless implementation of Freight for both sites. Bridgestone look forward to increasing customer satisfaction with higher service levels and a later sales order cut-off time”.

Alexander Soderberg, Operations Director, DHL Supply Chain Sweden said. “I’m delighted that Bridgestone has chosen to extend the existing warehouse contract and to offer two further contracts to DHL. The new warehousing operation in Gothenburg is a very exciting opportunity for DHL Supply Chain to extend its services and regaining the transportation of tyres in Sweden complements DHL’s existing tyre distribution business via DHL Freight.”