DHL partners with Nokia to bolster Saudi Arabia SCM
DHL Express has entered a partnership with Nokia Siemens Networks (NSN) to jointly enhance the supply chain management model for a Saudi telecommunications provider. Under the three-year agreement, Nokia Siemens Networks will leverage DHL’s extensive footprint and network in Saudi Arabia to establish a Kingdom-wide domestic express distribution of telecommunications and mobile spare parts.
As the third-party logistics partner, DHL will provide storage and inventory management solutions for NSN, by consolidating inventory from 10 existing locations in the Kingdom of Saudi Arabia hosting spare parts operations, and repositioning these to DHL Express multi-user facilities in strategic locations across Saudi Arabia, at Riyadh, Jeddah and Dhahran.
In addition, DHL will also take on value-added services such as the coordination of customer service activities through the management of the NSN call centre based in Dubai.
“Given the complexity and geography of service required, DHL has demonstrated tremendous experience and knowledge in ensuring the success of a robust distribution system for Nokia Siemens Networks in Saudi Arabia,” said Andres Fuentes, Hardware Services Operations Manager (Middle East Centre), Nokia Siemens Networks. “We are heartened to partner DHL whom we are confident would continue to enable us in delivering the most cost efficient results and quality for our customers.”
“We see a growing trend of companies in the IT and telecom sectors outsourcing their spare parts logistics operations, so they can focus on their core business,” said Nour Suliman, CEO of DHL Express for Middle East and North Africa. “With strong domestic network coverage in Saudi Arabia, DHL is well-positioned to deliver an efficient and effective distribution system for Nokia Siemens Networks.”
SEE OTHER TOP DHL STORIES IN THE SUPPLY CHAIN DIGITAL CONTENT NETWORK
The Nokia Siemens Networks’ mobile spare parts are manufactured and shipped from Eastern Europe and China to Saudi Arabia through DHL’s global network. To monitor whether the spare parts are in stock and in transition, DHL will also implement a highly-efficient warehouse system which will ensure inventory accuracy, visibility into stockpile and asset value accountability.
“At the core of this partnership, the key objective was to enable Nokia Siemens Networks and their telecommunications client to focus on core business expertise and competencies,” said Dirk van Doorn, Vice President, Multi-National Companies, DHL Express, Eastern Europe, Middle East and Africa.
“The partnership is a strong endorsement of DHL’s network capabilities in the Kingdom of Saudi Arabia where we have unrivaled local coverage and a dedicated workforce on the ground that is fully committed to the success of this partnership.”
Through the DHL Domestic Express product, the end-user will enjoy a guaranteed delivery service within specific time frames between 2- 6 hours anywhere across KSA.
Edited by Kevin Scarpati
Elon Musk's Boring Co. planning wider tunnels for freight
Elon Musk’s drilling outfit The Boring Company could be shifting its focus towards subterranean freight and logistics solutions, according to reports.
A Boring Co. pitch deck seen and shared by Bloomberg depicts plans to construct wider tunnels designed to accommodate shipping containers.
Founded by Tesla CEO Musk in 2016, the company initially stated its mission was to offer safer, faster point-to-point transport for people, particularly in cities plagued by traffic congestion. It also planned longer tunnels to ferry passengers between popular destinations across the US.
The Boring Co. completed its first commercial project earlier this year in April. The 1.7m tunnel system is designed to move professionals between convention centres in Las Vegas using Tesla EVs. It says the Las Vegas Convention Centre Loop can cut travel time between venues from 45 minutes to just two.
Boring Co.'s new freight tunnels
The Boring Co.'s new tunnel designs would allow freight to be transported on purpose built platforms, labelled as “battery-powered freight carriers”. The document shows that, though the containers could technically fit within its current 12-foot tunnels, wider tunnels would be more efficient. Designs for a new tunnel, 21 feet in diameter, show that they can comfortably accommodate two containers side-by-side, with a one-foot gap between them.
The Boring Co.’s new drilling machine, dubbed Prufrock, can tunnel at a rate of one mile per week, which is six times faster than its previous machine, and is designed to ‘porpoise’ - mimicking the marine animal by ‘diving’ below ground and reemerging once the tunnel is complete.
Tesla’s supply chain woes
Tesla is facing its own supply chain and logistic issues. The EV manufacturer has raised the price of its vehicles, with CEO Musk confirming the incremental hike was a result of “major supply chain pressure”. Musk replied to a disgruntled Twitter user, confused as to why prices were rising while features were being removed from the cars, saying the “raw materials especially” were a big issue.
Car manufacturing continues to be one of the industries hit hardest by a global shortage in semiconductor chips. While China’s chip manufacturing levels hit an all-time high in May, and the US is proposing a 25% tax credit for chip manufacturers, demand still outstrips supply. Automakers including Volkswagen and Audi have again said they expect reduced vehicle output in the next quarter due to a lack of semiconductors, with more factory downtime likely.
Top Image credit: The Boring Company / @boringcompany