EXEL EXTENDS CONTRACTS WITH VOLKSWAGEN AND GOODYEAR

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Exel, the global leader in supply chain management, has extended its contract with Volkswagen AG Sales Original Parts (VO) for another three years to manage the company's aftermarket logistics. The contract is linked with a concentration of goods inwards logistics by Volkswagen and a move for the Exel staff working for this business to Volkswagen AG's new OTC 4 (Original Parts Centre 4) in Baunatal, Germany. The Company has also been awarded the contract to extend Goodyear's supply chain information platform for additional countries in EMEA over the next year. Called the Supply Chain Toolkit, this will support the management of Goodyear's tracking of its shipments in the region.

In the new Volkswagen OTC 4 warehouse, Exel, with a team of over 600 employees, will manage VW's deliveries, bookings, re-packaging and the dispatch of approximately 330,000 original parts for Volkswagen, Audi, SEAT and Skoda vehicles from more than 4,000 VW suppliers. Via a link with VW's SAP-supported ET 2000 system, the entire logistics process will be monitored and controlled by all participants.

"Since 1993, we have worked with Exel in the original parts business, an area that is constantly changing. Through the steadily growing number of vehicle models, the number of original parts grows by 15 to 20% per annum. This requires continuous adaptation of all logistics processes, which Exel and VW have been optimising for many years," explained Frank Henke of VW Original Parts. "With the move of four depots into the new OTC 4, Exel and VW can reduce delivery and travel times, and increase productivity and flexibility more cost-effectively."

For Goodyear, Exel's information platform provides supply chain transparency throughout the company's operations. Following the successful introduction of this information system in Germany, Luxembourg, Turkey, Poland, Dubai, Spain, Italy, Portugal and Slovenia over the past two years, Exel has now won a contract to implement this information platform in France, South Africa, Morocco and the UK in 2005.

"We won this contract because we were able to offer Goodyear and its local transport partners a European-wide tracking and tracing platform, and non-stop supply chain transparency, making it possible to optimise the entire movement of goods and information processing for the company in the region," said Gerald Schneider, Operation Owner EMEA, for Exel. "Exel is responsible for co-ordinating the processing and import customs clearance of all overseas tyre and raw materials shipments from Goodyear Dunlop Tires to the EMEA region."

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