DHL and RECARO sign partnership agreement
New modular concept will benefit car manufacturersBonn, 10/19/2007, 11:30 AM CEST
DHL Exel Supply Chain and RECARO have signed an agreement concerning the modular manufacturing and logistics of car seats. The logistics expert DHL, part of the Deutsche Post World Net group and Recaro, the manufacturer of premium seat systems for the automotive industry, will enhance their future joint development, procurement, assembly, warehousing and transport of premium car seats. The respective agreement was signed mid-October during the 24th German Logistics Congress in Berlin.
The partnership between both companies marks a new approach to combined modular production and logistics. Under the new business model, RECARO will contribute its core competences in the areas of development, marketing and distribution of car seats, whilst DHL will not just be responsible for all logistical performances but also for the assembly of the seat systems as well as the international coverage using module center sites in the vicinity of the car manufacturers and OEMs. Future customers will benefit from significantly reduced delivery times despite the fact that the product range is large and varied, and will also benefit from low cost structures.
Michael Engler, head of the automotive, industry and technology divisions at DHL Exel Supply Chain Germany, says: "Automotive manufacturers are increasingly faced with shorter model cycles as well as increasingly complex vehicle systems. Therefore, cooperation with premium suppliers is absolutely essential. The fact that RECARO, as one of the best-known system suppliers in the automotive industry, has opted for this partnership with DHL, is proof for our competency in terms of solutions and confirms that logistics providers have an increasing role in the production areas and the automotive value-added chain as a whole."
Horst Kespohl, Chairman of the Executive Board of RECARO, adds to the above: "This combined business approach is a continuation of our efforts to position RECARO as a highly qualified system supplier for the automotive industry. RECARO products have always fulfilled the individual requirements of motorists. Now we can help our customers to respond quickly and cost efficiently to drivers individual needs. The radical and intelligent restructuring of the value-added chain is a major process innovation that will also benefit our customers in terms of reduced costs."
It is planned that, at a later date, further components and systems for the automotive industry are to be provided by the DHL module centers in order to increase the total benefit for car manufacturers. That way, DHL supports a trend, which should enhance the companies' competitiveness in this highly competitive industry. Manufacturers and suppliers will increasingly be able to focus on their core competencies and to outsource production and logistics processes to experienced service providers. For some time, DHL has specialized in providing assembly services for the automotive industry, including the pre-assembly of door side panels for the Audi A4 and A6.