Airbus selects lead logistics and transport providers

Airbus has selected Kuehne+Nagel as lead logistics provider and DHL as lead transport provider, becoming Tier 1 partners for Airbus. The decision is a significant step towards the integration of Airbus and will allow a further harmonization and optimisation of Airbus’ logistics and related transport processes in Europe. The integration will lead to substantial savings in the range of a high double-digit million Euros amount. The process is part of the Power 8 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 Fabrice Bregier, Airbus Chief Operating Officer. “This new way of working will greatly contribute to securing our global competitiveness.”

Implementation of the new transport and logistics concept will start 1st September this year.