DHL Exel Supply Chain has launched a shared-user warehousing and logistics solution for inbound automotive component suppliers in the UK.
It enables Tier One and Two suppliers to cut costs by sharing facilities and IT systems, as well as providing transactional-based pricing models which lessen commercial risk as volume or sourcing decisions change.
The company says the new technology will benefit automotive suppliers such as those that have increased their sourcing of components from India and China before kitting and sequencing them in the UK for just-in-time delivery to the OEMs.
Talking about the new solution Martin Dougherty, Head of In-bound Logistics at DHL Exel Supply Chain, said: “The great benefit of the shared-user solution is the speed of implementation and the ability to benefit from systems and economies of scale without investing in bricks and mortar – an option that few automotive businesses can consider in the current economic climate, given the tight constraints on finances.”