CHARLOTTE, N.C. (Jan. 14)—Continental Tire North America Inc. will outsource management of its passenger tire distribution logistics this year in an effort to provide faster and more efficient delivery services.
Under terms of a new "strategic partnership" with Exel P.L.C., a British logistics services company, Conti will turn over control of its seven tire distribution warehouses in the U.S. and Mexico to the U.S. unit of Exel. The agreement becomes effective April 1.
Calling the contract a "win-win situation," Martien de Louw, president and CEO of Continental Tire North America, said the relationship will allow Conti to "focus on our core competencies, tire development and manufacturing."
The companies did not disclose the value of the contract. Conti did not indicate what cost savings it anticipates from the deal, but de Louw said the initiative "is another significant step in strengthening our market position in North America."