As part of its AMBITION 2024 strategy, leading global automotive supplier Marelli has signed a five-year service agreement with contract logistics leader DHL. This arrangement will enable Marelli to transform its supply chain operations in North America.
It may be recalled that through the AMBITION 2024 strategy, Marelli aims to expand its position as a leading independent automotive supplier and become a true global champion. It proposes to achieve its aim through four strategic priorities - next-generation technologies, commitment to quality and excellence, to be sustainable and responsible and delivering efficiency and cost competitiveness.
The partnership with DHL will drive efficiency, cost savings and sustainable best practices throughout the region. It will also promote integration across business units through the implementation of common practices and innovative digital tools.
According to the automotive supplier, the partnership will not only provide Marelli with access to best practices, skilled experts and the latest technology, but also free up valuable resources enabling greater focus on fundamental business development.
As Marelli's fourth-party logistics provider (4PL), DHL will have complete oversight of the company's regional supply chain operations. Transportation costs will be greatly reduced by eliminating multiple carriers and improving saturation rates, resulting in fewer carbon emissions. Dramatic efficiency and visibility improvements are expected by introducing common tools and technology, while Marelli's customer base will benefit from improved delivery times and real-time inventory tracking.
Bharat Vennapusa, Head of transformation for Marelli in North America, said, 'Our partnership with DHL will provide us with a competitive and sustainable logistics cost model and deliver a step change in savings to truly transform our supply chain. In addition to the economies of scale realised by working with a single-source supplier, we will benefit from coordinated bidding, freight volume management, tracking and tracing, industrial engineering support and a robust digital platform, all provided by DHL.'
Jim Monkmeyer, President, Transportation, DHL Supply Chain, North America, said, 'We are confident that through our management, industrial engineering, and robust digital platform capabilities, we can strengthen Marelli's commitment to offering automotive sector solutions with the reliability and flexibility today's customers expect.'
NB: Photo is representational.