DHL Supply Chain wins new five-year contract with Volvo Cars
DHL Supply Chain has been awarded a five-year contract with Volvo Cars, one of the automotive industry’s best-known brands, to handle its aftermarket parts warehousing and distribution to more than 120 dealers across the UK.
Under the new contract, DHL will manage four shared use local distribution centres. Deliveries will take place through the night using DHL’s Auto Alliance collaborative platform. During the day, deliveries are made through the same day service to all of Volvo Cars UK dealers.
This service incorporates flexible driver departure times to even the most remote dealers, meaning an enhanced, more efficient delivery service nationwide.
Michael Martin, VP Business Development, Automotive, DHL Supply Chain added: "DHL is delighted to be working with one of the world’s leading automotive companies to drive forward innovative approaches for exceptional customer service.
“This new contract heralds a new partnership between DHL and Volvo Cars, which will see us deliver an innovative service-level delivery network, resulting in increased efficiencies. Volvo Cars commitment to its customers is outstanding and at DHL we adopt a matching approach to service quality in all of our collaborative partnerships.”
A new fleet of increasingly fuel-efficient vehicles will be deployed, with more than 35 trucks that feature forward facing cameras, Microlise vehicle tracking to increase fleet performance, full closure tail lifts to maintain high safety standards and state-of-the-art double deck trailers specifically designed for working in the Aftermarket environment.
Through changes to the network, DHL and Volvo Cars have been able to increase the availability of Volvo Cars parts whilst providing an efficient service to the dealer network.
DHL is the global market leader in the logistics and CEP industry. A global network composed of more than 220 countries and territories and around 315,000 employees’ worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements.
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