Penske Logistics announced that diversified industrial manufacturer Eaton Corporation selected the firm to serve as its lead logistics provider for the company's North American-based automotive and truck business segments.
Under the agreement, Penske Logistics will manage the inbound supply
chain for these segments. This process encompasses the material flow of
thousands of component products from more than 300 suppliers into Eaton's
North American manufacturing locations.
"We are very pleased to work with Eaton in the U.S. and Europe," said
Penske Logistics President, Vince Hartnett. "Our goal is to help customers
drive supply chain excellence and enable them to focus on running
world-class manufacturing operations."
Penske Logistics is working with Eaton to improve the efficiency of its
inbound supply chain. Part of the improvement already underway includes
moving to a highly efficient pull system, driven by Eaton's production
schedules, versus the system currently in place today. Penske Logistics
also has a dedicated logistics center and management team focused on North
American transportation management and network design for Eaton.
"Our team is working to standardize processes, introduce new metrics
and systems for better forecasting and supply chain visibility, reduce
inventory, and improve both static and dynamic routing," added Hartnett.
Mario Hegewald, Eaton's Director of Global Logistics, added, "We view
this program with Penske Logistics as a critical strategic project for
2006. Penske has already begun implementation of its Transportation
Management System and currently manages Eaton's day-to-day inbound
transportation. We will rely on Penske Logistics' expertise and technology
to optimize our North American logistics operations through network
redesign and shipment consolidation."