Bombardier Transportation is standardizing supply-chain and logistics processes in support of its European production facilities. The global maker of regional aircraft, business jets and rail transport equipment has selected Penske Logistics as its lead logistics provider, responsible for planning and coordination, as well as the management of all carriers and transportation services. The vendor's tasks will include carrier selection and contract negotiation. Penske's operations on behalf of Bombardier will be based in the Netherlands. Bombardier said the appointment will result in greater efficiency, fewer individual shipments, streamlined internal transportation processes and better visibility into its logistics network. At the same time, Bombardier has named Schenker Deutschland AG as its preferred carrier for all transportation services in support of European production. One of Germany's largest transportation providers, Schenker has an extensive track record of serving the automotive industry. Its local network consists of some 700 locations. Bombardier said it will implement the new arrangements by the beginning of next year. Global headquarters of the transportation division are in Berlin; Bombardier claims an installed base of more than 100,000 vehicles worldwide. Based in Canada, its parent company, Bombardier Inc., had $14.8bn in revenues in the fiscal year ending January 31, 2007. In a related development, Penske Logistics won multi-year logistics contracts with BMW Manufacturing Co. and BMW of North America. Under the agreements, Penske will manage the inbound supply chain for production parts from Mexico, and select U.S. suppliers for BMW's auto plant in Spartanburg County, S.C. Penske will also provide aftermarket parts transportation from Mexico and select U.S. suppliers into a Spartanburg cross-dock, as well as two distribution centers based in California.
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