European logistics from Eaton shifts to DHL Supply Chain
DHL Supply Chain and Eaton, the global provider of energy management solutions, have signed a long-term agreement on the development and operation of three distribution centers for Eaton’s European electrical business. Over the next few years, the contract logistics specialist within Deutsche Post DHL Group will consolidate Eaton’s major standalone distribution center capabilities throughout Europe into three high-performing and integrated primary distribution centers. These will be located in Germany, in the UK and in the Czech Republic, where the current DHL managed distribution center will be expanded.
In Rheinbach, Germany, a new building is planned that 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.
“DHL is very experienced in warehousing and distribution as well as supply chain solutions. It’s a very interesting partnership where we support each other’s growth while we keep focused on our core businesses,” says 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 center employees from Eaton. They are covered by this agreement and are given the opportunity to join DHL following the overall 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.