Marelli, a leading Tier 1 global automotive supplier, has signed a five-year service agreement with DHL, the global market leader in contract logistics solutions, to transform its supply chain operations in North America. The partnership will drive efficiency, cost savings and sustainable best practices throughout the region, and will promote integration across business units through the implementation of common practices and innovative digital tools.
As part of its ongoing transformation outlined in AMBITION 2024, Marelli is focused on developing core competencies to improve customer value and drive profitability. The DHL partnership will not only provide Marelli with access to best practices, skilled experts and the latest technology, it will free up valuable resources enabling greater focus on fundamental business development.
As Marelli‘s fourth-party logistics provider (4PL), DHL will have complete oversight of the company’s regional supply chain operations. Transportation costs will be greatly reduced by eliminating multiple carriers and improving saturation rates, resulting in fewer carbon emissions. Dramatic efficiency and visibility improvements are expected through the introduction of common tools and technology, while Marelli’s customer base will benefit from improved delivery times and real-time inventory tracking.
“Our partnership with DHL will provide us with a competitive and sustainable logistics cost model and deliver a step change in savings to truly transform our supply chain,” said Bharat Vennapusa, head of transformation for Marelli in North America. “In addition to the economies of scale realized by working with a single-source supplier, we will benefit from coordinated bidding, freight volume management, tracking and tracing, industrial engineering support and a robust digital platform, all provided by DHL.”
“At DHL Supply Chain, we truly believe in putting our customers at the core of everything we do, leveraging our industry-leading supply chain and logistics resources with a firm belief in continuous innovation to offer our customers the most advanced technologies to improve their business,” said Jim Monkmeyer, president, transportation, DHL Supply Chain, North America. “We are confident that through our management, industrial engineering, and robust digital platform capabilities, we can strengthen Marelli’s commitment to offering automotive sector solutions with the reliability and flexibility today’s customers expect.”