Commercial vehicle maker Iveco has renewed its contract with logistics provider Kuehne + Nagel for the greater part of its European aftermarket supply.
The three-year extension to the nine year relationship includes the management of five regional spare parts distribution centres in Turin (Italy), Langenau (Germany), Madrid (Spain), Trappes (France) and Winsford in the UK.
Each centre handles between 80,000-160,000 SKUs which are distributed overnight by Kuehne + Nagel across its European distribution network equalling an annual flow of 9m order lines, ranging from small components to entire engines blocks.
Under the contract, Kuehne + Nagel will introduce a set of enhancements, including RFID and pick-by-voice technologies. The renewal of contract will also see the implementation of restructuring measures that Kuehne + Nagel says will “create an even more efficient and responsive supply chain for Iveco’s spare parts division” though it would not elucidate what those measures were.
“Iveco Customer Service confirms its partnership with Kuehne + Nagel as a key leverage to further improve customer satisfaction and parts business profitability,” said Enzo Gioachin, Iveco’s senior vice president in charge of customer service. “Kuehne + Nagel’s quality improvement three-year plan will support Iveco in strengthening our position in an increasingly competitive aftersales market.”
Aftermarket sales have been an important source of revenue for commercial vehicle makers through 2009 as demand for vans dropped significantly. New light commercial vehicle registrations were down 35.6% on the previous year.
In the UK Iveco forecasts a slow recovery in sales in the second half of 2010 and expects to end the year on a total of around 35,000 vehicles over 3.5-tonne GVW, a similar level to 2009. But the company’s managing director Henk van Leuven told those gathered at the annual Iveco State of the Nation press conference held recently that new truck prices in 2010 will have to "increase considerably" on 2009 levels due to higher raw material costs and the weakness of the pound.