DHL and Kellogg expand European partnership
DHL Solutions takes over warehouse management and distribution at Bremen locationBonn, 09/17/2004, 11:30 AM CEST
DHL Solutions and the Kellogg Company, the world's leading producer of cereals, have expanded their alliance in Europe. DHL Solutions has taken over Kellogg's logistics center in Bremen, Germany, and is now in charge of the facility's management and all national transports. This outsourcing is part of Kellogg's overall European strategy. The company has been working with express logistics giant DHL in France, Italy, Spain and the Benelux countries for years now.
"We want a one-stop, single-source solution," says Rainer Frerich, head supply chain manager at the Kellogg Company. "DHL can give us exactly this kind of service and has an expansive European network as well." The logistics company will be supplying the European markets with direct shipments ex works and will be handling distribution either centrally or decentrally depending on need. "This puts us at a considerable advantage when it comes to customer service with greater transparency vis-à-vis processes and disposition," continues Frerich.
"We've developed the so-called Control Tower Concept for Kellogg," says Michael Engler, Director of Marketing & Sales at DHL Solutions Germany. Based on the "merge-in-transit" principle, it will soon be possible to consolidate multi-component orders from the various manufacturing locations by merging them in field at one single distribution site located near the customer. "We are in the throes of implementing, step by step, this innovative model," says Engler. "And in the future we will also be working together with the Kellogg Company on optimizing the logistics processes for all of Europe," adds Engler, describing the scope of the logistics alliance with Kellogg.
The high-bay warehouse, with storage space for some 32,000 pallets, is located right on the premises of Kellogg's production facility in Bremen. Over the course of a year pallets in the six-figures are loaded here with 450 different products and prepared for shipment to more than 50 countries throughout the world. The Kellogg employees working in this sector were taken on by DHL Solutions starting July 1, 2004.