Grundfos, a worldwide manufacturer of pumps, has signed a three-year agreement with TNT Logistics, for it to perform a leading global role in developing and implementing efficient supply chain solutions that encompass management and integration of different network flows for Grundfos. And if needed, warehouse solutions can be added at strategic locations.
At the same time TNT Express and TNT Freight Management, part of TNT Express, signed the agreement, as Grundfos recognised the added value of their network capabilities in the supply chain. TNT Express' expanding networks in Asia are supportive for the expansion of Grundfos in the same region and TNT Freight Management's transparent sea & air-solutions will cope with the increasing intercontinental flows due to the global manufacturing strategy of Grundfos.
This agreement constitutes the TNT organisations as Grundfos' preferred global logistics providers. Besides providing a clear structure of working together, the agreement involves sharing of information and continuous improvement of Grundfos' supply chain by introducing new logistics and network solutions.
Need for global solutions
'The agreement basically resulted from Grundfos' continuous growth from a mainly European to a worldwide scope, as a result of our strong expansion in Asia - especially China and India - and the Americas, where we have plans for a new plant in Mexico', explains Lars Petersen, Group Senior Vice President Supply Chain Management of Grundfos. 'This caused a growing need for global solutions, particularly in our supply chain. Results of several joint improvement projects already indicated the value of the TNT divisions as important supply chain partners for Grundfos. The possibility to benefit from TNT's experience with other global customers also contributed to this partnership.'
An important step forward
All parties involved expect excellent opportunities for growth through this cooperation. 'By working together on supply chain understanding, smart transport-solutions, strong visibility and planning tools, TNT Logistics can develop a generally more competitive and optimised supply chain for Grundfos', says Jos Kuypers, Director Product Development, IT & Strategy, TNT Benelux & Multi Country Logistics. 'Our current joint operations are an excellent base for further development and extension to global solutions. We are very proud of this agreement, it is an important step forward.'