Vitesco Technologies, DHL sign deal to reduce CO2 emissions
DHL Supply Chain becomes lead logistics partner for Vitesco Technologies in Europe
100,000 transport movements within the supply chain to the plants and also from the plants to the customers will be managed centrally by DHL as of March 2024. Photo Credit: Vitesco Technologies
Regensburg, Germany-based Vitesco Technologies has signed an agreement with DHL Supply Chain as lead logistics partner (LLP).
"As of March 2024, the logistics flows of Vitesco Technologies’ twelve European locations will be centrally managed by DHL through the LLP Center of Excellence in Warsaw, Poland," says a release from Vitesco. "This corresponds to around 100,000 transport movements within the supply chain to the plants as well as from the plants to the customers , and thus accounts for about a third of Vitesco Technologies’ total freight volume."
Vitesco is an international developer and manufacturer of cutting-edge drive systems for sustainable transport solutions. The product portfolio includes electric drives, electronic control units, sensors and actuators and exhaust aftertreatment solutions. In 2023, Vitesco reported a two percent increase in sales at €9.23 billion, and order backlog, as of December 31, 2023 stood at around €58 billion. Adjusted EBIT amounted to €341.1 million (2022: €225.5 million). Vitesco had a workforce of around 35,500 employees at 50 locations in 2023.
“The main driver of our business is the development and production of sustainable technologies for the mobility of tomorrow," says Thomas Kirchermeier, Head of Supply Chain Management, Vitesco Technologies. "We want to run this business in a CO2-neutral way by 2040. Sustainable logistics solutions are an important step along this path, which we will be taking together with DHL Supply Chain in the future."
The advantage of the new logistics concept is that, as a LLP, DHL Supply Chain bundles the freight volumes of numerous large companies to generate synergy effects and achieve new potentials for optimisation, the release added. "The logistics experts make use of the entire market of freight carriers and forwarding agents and can provide the fastest, safest, most environmentally friendly, and most cost-effective transport solutions. This benefits Vitesco Technologies and all customers: supply chains become more robust and more reliable."
Hendrik Venter, CEO, Europe, Middle East & Africa, DHL Supply Chain says: “The first joint pilot projects have already shown that we can leverage considerable synergies through a seamlessly integrated supply chain. The cost savings and efficiencies that we have already been able to realise together with Vitesco Technologies are now paving the way for further global growth. With our focus on a consistent standardisation and orchestration of logistics processes, we want to further minimise CO2-emissions, maximise the efficiency of supply chains and improve their resilience in the coming years."
