Kuehne + Nagel and Iveco extend partnership for European spare parts logistics

Iveco, a global manufacturer of commercial vehicles and buses, has extended its service contract with logistics provider Kuehne + Nagel for another three years.

Kuehne + Nagel manages five regional spare parts distribution centres for Iveco: Turin (Italy), Langenau (Germany), Madrid (Spain), Trappes (France) and Winsford (UK). The service portfolio includes goods-receiving, storage, picking & packing, distribution as well as the handling of returns, encompassing re-packing and re-labeling. Another key factor is the overnight distribution of spare parts via Kuehne + Nagel’s specialised automotive distribution network throughout Europe.

An important element of this logistics offering is the complete integration in the internal preparation cycle of the thermic treatment process for wooden packages for extra-Europe destination shipments, as per the International Standards for Phytosanitary Measures (ISPM15). This allows remarkable savings in terms of time and cost reduction as it eliminates further operating charges such as double handling and reduces order cycle timing.

Iveco and Kuehne + Nagel have been cooperating for 12 years during which the logistics provider has developed a culture of improvement by optimising and introducing innovative processes and tools such as RFID technology. The company also implemented an automated storage and retrieval system for small and medium sized components, resulting in an ‘error free’ preparation process. The business currently covers the management of 300,000 sqm logistics space with a capacity for as much as 160,000 stock-keeping units per depot. Some nine million order lines - ranging from small components to entire engine blocks and cabs - totalling well over 60,000 tons of incoming and outgoing cargo are handled per year.

“The extension of the contract by Iveco clearly recognises our expertise in the field of automotive contract logistics and our strong skills in supply chain innovation and continuous process improvement. We are proud to have been chosen again by Iveco as their preferred logistics partner in Europe”, says Ruggero Poli, National Manager of Kuehne + Nagel Italy.