DHL to create, manage European distribution centres for Eaton’s electrical business

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DHL Supply Chain has signed a long-term agreement with the global power management company Eaton to create and manage three distribution centres for their Electrical business in Europe.
Over the next few years, the contract logistics specialist within Deutsche Post DHL Group will consolidate Eaton’s major standalone distribution centre capabilities throughout Europe into three high-performing and integrated primary distribution centres. These will be located in Germany, UK and Czech Republic, where the current DHL managed distribution centre will be expanded.
“Eaton has been a valued partner for years and we are delighted to further intensify our collaboration. Based on DHL Supply Chain’s broad expertise in devising integrated supply chain solutions, we developed the Rheinbach concept for a full warehouse consolidation, starting with planning, construction, fit out and full automation to the initial setup and operation,” said Oscar de Bok, CEO, DHL Supply Chain Mainland Europe, Middle East & Africa.
In Rheinbach, Germany, a new building is being planned which will serve Eaton’s customers in Western Europe. The green field construction is scheduled to start in the fourth quarter 2017, with DHL storing and distributing different electric components such as switch cabinets, fuses and control devices in the new warehouse after its completion in 2018. The goal is to create a more efficient warehousing concept enabled by a fully automated solution and thereby reducing overall run times to meet increased customer demand.
“The new facility will not only provide a significant increase in productivity due to its innovative set up but also demonstrates DHL’s commitment to the wider Bonn region.”
“Providing tailored contract logistics solutions is one of our globally proven strengths and the newly to-be-constructed warehousing solution will help Eaton to prepare its business for a successful future,” Karsten Schwarz, CEO, DHL Supply Chain Germany and Alps said. “The new facility will not only provide a significant increase in productivity due to its innovative set up but also demonstrates DHL’s commitment to the wider Bonn region.”
As both DHL and Eaton have a strong commitment for sustainability with corresponding goals, the new warehousing site is to comply with the standards of the German Society for Sustainable Construction (DGNB) and will be built to achieve the silver certificate of the association.
“DHL is very experienced in warehousing and distribution as well as supply chain solutions and we can help with their environmental focus and drive energy efficiency by applying Eaton’s power management technologies to their facilities. It’s a very interesting partnership where we support each other’s growth while we keep focused on our core businesses,” said Klaus Gaeb, vice president, Supply Chain and Operational Excellence, Eaton EMEA.
As DHL already has a significant footprint in Europe, this revised distribution approach would also provide strong future prospects to the majority of distribution centre employees from Eaton covered by this agreement, who have been given the opportunity to join DHL following the completion process.
With these new agreements, Deutsche Post DHL Group and Eaton are taking the next step in extending their strategic partnership. Since 2008, DHL has been supporting Eaton in the review and improvement of its supply chains across the globe, winning the company’s Best Supplier Award in 2016.
Questions & Answers
Q.What kind of electrical components will be stored and distributed from the new German facility?
What kind of electrical components will be stored and distributed from the new German facility?
DHL will store and distribute various electrical components, including switch cabinets, fuses, and control devices, from the new Rheinbach warehouse once it is completed.
Q.Which of the three new distribution centres is an expansion of an existing DHL facility?
Which of the three new distribution centres is an expansion of an existing DHL facility?
The distribution centre in the Czech Republic will be an expansion of a current DHL-managed facility. New centres are also planned for Germany and the UK.
Q.What is the expected benefit for Eaton's employees from this new distribution approach?
What is the expected benefit for Eaton's employees from this new distribution approach?
The majority of Eaton's distribution centre employees covered by this agreement will have the opportunity to join DHL. This revised approach offers them strong future prospects.
Q.When is construction for the new Rheinbach facility scheduled to begin?
When is construction for the new Rheinbach facility scheduled to begin?
The greenfield construction for the new facility in Rheinbach, Germany, is scheduled to begin in the fourth quarter of 2017. Completion is expected in 2018.
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