Visteon's inventory will be re-located from Maastricht, where its outsourced operations are located at present, to Anterist & Schneider's facility in Cologne. From 2007 the Schenker subsidiary will be responsible for all warehousing, despatch and transportation operations. It will have a key role in inventory management and also be responsible for managing the supply chain into the Cologne facility.

Schenker has one of Europe's largest networked road freight capabilities and an infrastructure of regional distribution centres and cross-docking facilities which makes it a big player in these type of after-market contracts. However at present the deal is centred on operations around the Cologne hub.

Visteon Europe's, aftermarket supply chain manager, Friedrich-Wilhelm Reese, commented "at present the contract just includes the central warehouse in Cologne and related transportation, for further developments such as Regional Distribution centres we have an option with Schenker. The plan for the future depends on how the business develops".

In one crucial aspect the deal reflects the changing nature of the automotive aftermarket supply chain. Although assembly of major component sub-assemblies and modules takes place very close to major vehicle manufacturers, an increasing number of smaller parts are produced outside of Europe. Friedrich-Wilhelm Reese comments, "We do manufacture starters and alternators, for example in India and there are certain climate control parts that we manufacture only in South America. So we at Visteon Aftermarket need a global player that can provide transport on their own. If I need a pick-up in South America they have an office that can take control of it. They have one central point of contact that arranges everything for us". Therefore Schenker's ability to manage the flow of components into the Cologne hub by using its large freight forwarding capability was a major reason for winning the contract. Reese continued "The major criterion for us is that we need a global player."

Although the size and duration of the contract has not been disclosed it must be a substantial win for Schenker. Visteon has had severe problems recently but its lighting, interiors and air-conditioning businesses are significant players and it probably remains one of the world's top ten suppliers.

Source: Transport Intelligence, September 15, 2006
http://www.transportintelligence.com

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