DHL SUPPLY CHAIN IS ENTRUSTED BY VOLVO CAR JAPAN WITH SPARE PARTS LOGISTICS IN JAPAN

• The first logistics facility outside Europe based on Volvo’s LDC (Local Distribution Center) concept is opened in the Kanto area to improve Volvo dealers’ performance and customer satisfaction.
• DHL Supply Chain helps shorten the lead time of spare parts delivery to Volvo dealers while reducing the transport carbon footprint.

DHL Supply Chain, the global leader in contract logistics, has been entrusted with logistics operations by Volvo Car Japan, a Japanese entity of Volvo Car Corporation. Volvo is a passenger car manufacturer headquartered in Gothenburg, Sweden, renowned for its sophisticated designs and leading safety features. DHL Supply Chain has started providing services at the Urayasu Logistics Center in Chiba Prefecture, Japan.

The Urayasu Logistics Center supports Volvo’s passenger car business, which has recently seen growing demands in Japan. It offers quicker delivery times due to its proximity to Bayshore Route of Metropolitan Expressway with good access to the urban areas, and flexibility to respond to volume growth and fluctuations.

DHL Supply Chain offers logistics services including the storage of spare parts, deliveries to dealers in the metropolitan area, customer service, and collection of used parts. Based on Volvo’s LDC concept of two deliveries a day in the afternoon and evening with the afternoon deliveries completed within three hours of receiving an order, it has reevaluated the previous setup of a single site in Chukyo area and opened another logistics facility in Kanto area, enabling an improved service level to Volvo dealers in Tokyo, Kanagawa, Chiba and Saitama. This also reduces delivery distance and carbon emissions while providing enhanced business continuity planning in the event of disruption.

Shimon Woronoff, Senior Director, Head of Service Logistics for DHL Supply Chain Japan said, “We provide spare parts logistics to Volvo in other countries such as Sweden and Germany and leveraging this global partnership has been critical to our success. We worked closely with Volvo teams throughout the project to ensure that LDC concept which Volvo introduced in Europe and is deploying actively to other regions was implemented in the spare parts logistics operation in Kanto to add value to Volvo’s spare parts supply chain. As a result, we can optimize processes by deploying our global best practices combined with local skills and experience. Furthermore, we have a strong cultural fit with both companies putting in the effort for a more sustainable future and we are working together to drive sustainability in our operations.”

Martin Persson, Managing Director of Volvo Car Japan said, “I am pleased that a logistics facility based on LDC concept which was implemented in Europe and has produced great results has now been opened in Japan. In spare parts logistics management, optimization in East Japan has been our top priority. DHL Supply Chain, with its strong performance management, proactive culture of continuous improvement, optimized supply chain cost, service logistics network and flexibility, is our ideal partner to improve Volvo dealers’ performance and customer satisfaction. DHL Supply Chain’s global knowledge, localized know-how and sustainable logistics solutions match our priorities in driving business growth and I see a strong business fit between both companies.”