To support its contract manufacturing of Mercedes-Benz A-Class cars in Finland, Valmet Automotive has signed contracts with three logistics providers following a multi-step tender process.

Valmet is will work with DSV Road Holding, Polar Logistics International and Nybrok for services including collection and delivery of materials to the Uusikaupunki plant from Daimler’s supplier network.

Valmet signed an agreement with Daimler last summer for the production of the A-Class at its Uusikaupunki facility in Finland. Production is set for a total of 100,000 units to be built from complete knockdown (CKD) kits between this year and 2016.

“Our aim is to optimally serve customer demand and keep delivery times of our new A-Class as short as possible in the interest of our customers,” said Dr Wolfgang Bernhard, member of the Board of Management at Daimler with responsibility for Manufacturing and Procurement, Mercedes-Benz Cars & Mercedes-Benz Vans.

"With view to the targets set for manufacturing the Mercedes-Benz A-Class vehicles in Uusikaupunki, Finland, we wanted to implement innovative, alternative and efficient solutions,” said Kalle Nuutila, Valmet’s manager of transportation and packages. “Therefore, we have engaged partners who were willing to invest into collaboration with Valmet Automotive and who were able to offer the optimal match of innovativeness, commitment, size, geographical coverage, area specific knowledge, process orientation and flexibility. We have also carefully considered the cost aspect from the point of view of total cost of ownership. Building up the control tower function to manage all orders together with open communication between the selected partners is a fine example of the new concept."

DSV will be handling inbound logistics for the production line and transport of parts and components from Continental Europe to Finland.

“In the process with Valmet Automotive, we have focused on creating something new with regard to routing, transportation modes, transit times, environmental aspects and processes,” said Hannu Lakso, director of DSV Road Finland’s Central Europe division. “The partnership with Valmet Automotive Group is very important for DSV and is an acknowledgement of DSV’s capabilities within the automotive sector.”

Valmet said that the logistics contracts would pave the way toward its new group level logistics plan and makes DSV, Polar Logistics and Nybrok the preferred logistics service providers for all Valmet Automotive Group companies.

In January, Valmet announced that the inbound material handling at Uusikaupunki plant would be handled by Finnish logistics provider, HUB Logistics.

HUB logistics is now responsible for unloading and storing of component deliveries as well as for part deliveries to the assembly lines. The company is building a logistics centre next to the car plant that will include an automated storage system.

“HUB logistics is the leading company in the business, and best qualified to develop the internal logistics functions and the personnel at the Uusikaupunki plant in a situation where the production and component deliveries are rising to a new high level,” said Olli Kerajärvi, vice president quality and supply chain management at HUB.

Valmet Automotive will continue to handle the management of total logistics, material planning and accounting, deliveries, forwarding, customs clearance and delivering the complete cars from the plant.