Exhaust manufacturer Tenneco Walker has been working with DHL Supply Chain to cut costs and reduce the carbon footprint of its logistics operation as part of a three year contract renewal.
Tenneco has used DHL for more than 20 years and the two organisations worked together to develop an operation that achieves cost savings, while maintaining service levels to customers – mainly UK parts distributors and motor factors.
The need for strategic out-bases has been eliminated and there has been a reduction in operating assets, including vehicles, trailers and demountable boxes, to match the current volume patterns. By replacing 18 tonne trailers and tractor units and a 32 tonne articulated unit with a fleet of smaller Sprinter vans and a 7.5 tonne Luton van, DHL has reduced carbon emissions and supply chain costs.
More intelligent network planning and better vehicle utilisation has already achieved a ten per cent saving in miles run for the exhaust manufacturer.
The new system is expected to reduce Tenneco’s carbon footprint by 37 per cent in the first year of operation.
Malcolm Brown, operations manager at Tenneco, said: “Through our long association with the team at DHL, we have been able to work closely together to develop a radically different supply chain model that fits with a 21st century automotive business. Efficient, flexible and customer-centred are all descriptions of the kind of logistics infrastructure we wanted to achieve. To do this – as well as gaining considerable environmental benefits – has been a real achievement.”