Airbus bids to save millions in logistics and transport

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Airbus is harmonising and optimising its logistics and transport processes in a bid to save tens of millions of Euros with the appointment of lead logistics and transport providers.

Swiss-based Kuehne+Nagel is lead logistics provider and DHL is lead transport provider; both becoming Tier 1 partners for Airbus which said the decision was a significant step towards the integration of Airbus in Europe. The integration would lead to substantial savings in the range of a high double-digit million Euros amount. And was part of the groups Power 8 efficiency programme. The Airbus new logistics concept foresees the successive consolidation of all local warehouse facilities into regional hubs in Germany (Hamburg), France (Toulouse, Nantes-Saint Nazaire), Spain (Madrid, Puerto-Real) and the UK (Broughton) by 2010. They will be fully managed and operated by Kuehne+Nagel. These logistics centres provide more than 150.000 m² of floorspace for storing aircraft equipment, parts and raw materials to serve the Airbus production lines. As lead transport provider DHL will implement a full transport management system and streamline the transport of moving materials from the supplier to the Airbus manufacturing plants. International Commercial Terms (Incoterms) will be harmonized to one common FCA (Free Carrier) standard. This allows better integration, rationalizing of capacity and better tracking of items. Shipments of Airbus aircraft sections by air (Beluga), sea and road are not part of this new contract with DHL. "The optimization of our supply chain & logistics by defining one lead logistics provider and one lead transport provider is an essential step towards to increasing our efficiency and delivering on our Power8 targets", said Airbus COO Fabrice Bregier. "This new way of working will greatly contribute to securing our global competitiveness."