IVECO, one of the world’s largest producers of commercial vehicles and buses, has awarded Kuehne + Nagel with a renewal of its current integrated logistics service contract for a further period of three years. As IVECO’s preferred logistics service provider, Kuehne + Nagel is managing the majority of theirEuropean after market supply.

The logistics solution provided by Kuehne + Nagel comprises the management of five regional spare parts distribution centres in Turin (Italy), Langenau (Germany), Madrid (Spain), Trappes (France) and Winsford (UK). The current scope of business consists of operating a total of 300,000 sqm of logistics space with between 80,000 to 160,000 stockkeeping units per depot.

Kuehne + Nagel also oversees the entire distribution of stock via overnight shipments via its automotive distribution network throughout Europe, covering regions such as Ireland, Scandinavia, Benelux and Portugal among others. The annual flow of nine million order lines, ranging from small components to entire engine blocks, totals to well over 60,000 tonnes of outgoing cargo.

Under the contract, Kuehne + Nagel will introduce a set of enhancements, such as RFID and pick-by-voice technologies. Restructuring measures will also be implemented in order to create an even more efficient and responsive supply chain for IVECO’s spare parts division on the basis of the continuous improvement culture of both companies.