NYK Logistics has extended its service for Ford in Eastern Europe with the opening of an ‘origin consolidation centre’ (ODC) in Budapest, Hungary.
“The function of the ODC is in essence a cross-dock, providing consolidation and reporting services for Ford MP&L in close proximity to its production parts supplier base in Central/East Europe,” an NYK spokesperson based in Hungary told Automotive Logistics News. “Reporting services are related to conformity of quantity, quality, packaging and labelling. The ODCs are the first alert to any issue that could affect production.”
Parts handled are for all Ford plants that source parts from Eastern Europe including those overseas.
In addition to production parts, the ODC will distribute back Ford empty packaging to specific suppliers and act as CHEP deport for standard packaging suppliers.
The new contract builds on its service for the carmaker in the Central and Eastern Europe region as is has been operating a centre for Ford in the Czech Republic for the past five years near Prague.
Andy Watts, EDC and ODC operations manager at Ford MP&L, said: “NYK has given us an excellent service at its Prague site for many years and we look forward to receiving the same levels of commitment and service from the Budapest team in the future.”
Both contracts are in multi-customer environments according to NYK. The Prague facility manages flows from Czech republic, Poland and Estonia, and the Budapest facility from Hungary, Slovakia, Romania, Croatia and Slovenia. There are approximately 170 suppliers in total over the two sites.
According to Alex Okamoto, managing director of NYK Group Europe, the Budapest site is of strategic importance for its long term business development with Ford. “In the future it will be an important link between Ford’s western European supply base and its new plant in Craiova [Romania], which is due to start car production in 2012,” he said. The plant has been making the Transit Connect since last September.
NYK Logistics was also recently selected to handle inbound collections across Central Europe for supply to Nissan’s assembly plants in Barcelona, Spain and Sunderland in the UK, building on its existing provision for the carmaker in Eastern Europe and the UK.