DHL supply chain becomes lead logistics partner for Vitesco Technologies

Hyderabad: Vitesco Technologies, a prominent developer of drive systems for sustainable transport, has entered a strategic partnership with DHL Supply Chain as a Lead Logistics Partner (LLP). Starting in March 2024, DHL will centrally manage the logistics flows of Vitesco Technologies’ twelve European locations through the LLP Center of Excellence in Warsaw, Poland. This encompasses around 100,000 transport movements within the supply chain to and from the plants, accounting for about a third of Vitesco Technologies’ total freight volume.

Thomas Kirchermeier, Head of Supply Chain Management at Vitesco Technologies, emphasizes the company's commitment to sustainability: "The main driver of our business is the development and production of sustainable technologies for the mobility of tomorrow. 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 partnership with DHL Supply Chain as a Lead Logistics Partner offers significant advantages. By bundling the freight volumes of various large companies, DHL generates synergy effects and new optimization potentials. This allows for the utilization of a wide range of freight carriers and forwarding agents, ensuring the fastest, safest, most environmentally friendly, and cost-effective transport solutions. Ultimately, this benefits both Vitesco Technologies and its customers by creating more robust and reliable supply chains.

Centralized freight management by DHL also brings maximum transparency to transport routes, reducing CO2 emissions. This is achieved through combining deliveries that were previously separate or by utilizing climate-neutral transportation methods. The partnership leverages Vitesco Technologies’ expertise in electromobility and DHL's experience, as DHL operates the largest fleet of electric vehicles in the logistics sector.

Hendrik Venter, CEO DHL Supply Chain Europe, Middle East & Africa, highlights the success of joint pilot projects and outlines future goals: "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 realize together with Vitesco Technologies are now paving the way for further global growth. With our focus on a consistent standardization and orchestration of logistics processes, we want to further minimize CO2 emissions, maximize the efficiency of supply chains, and improve their resilience in the coming years."

Vitesco Technologies is known for its development and manufacturing of cutting-edge drive systems for sustainable transport solutions, including electric, hybrid, and internal combustion drive systems. The company's product portfolio includes electric drives, electronic control units, sensors, actuators, and exhaust after-treatment solutions. In 2021, Vitesco Technologies achieved sales of €8.3 billion and employs nearly 37,000 people across around 50 sites, with its headquarters in Regensburg.

DHL, recognized as the world’s leading logistics brand, offers a comprehensive logistics portfolio including national and international parcel delivery, transport and fulfillment solutions in e-commerce, international express shipping, road, air, and ocean freight transport, and supply chain management. With approximately 395,000 employees in over 220 countries and territories worldwide, DHL connects people and businesses, enabling global sustainable trade. DHL Group, aiming for net zero emissions logistics by 2050, generated sales of more than €81.8 billion in 2023 and emphasizes sustainable action and commitment to society and the environment.