AKRON (July 24, 2002) — Goodyear is expanding its logistics services agreement with the North American unit of Exel P.L.C., making the supply chain management company its lead logistics provider for North America.
Exel, the self-proclaimed global leader in supply chain management, has worked with Goodyear since 1996, and today handles distribution activities for Goodyear at six of the firm's 18 warehouses—in York, Pa., Orlando, Fla., Columbus, Ohio, Memphis, Tenn., and Victorville, Calif.
The expanded agreement will make Exel a partner on the strategic and tactical level, a Goodyear spokesman said. The companies will work together to refine Goodyear's logistics strategies, both upstream and downstream, and redesign processes where necessary.
Exel's work since 1996 has yielded “significant positive results in inventories,” which has led to improved cash flow and fill-rates, according to John Loulan, vice president for operations, manufacturing and supply chain in North America.
"Working with Exel, we have further analyzed opportunities that exist in the supply chain and believe there are additional significant improvements to come," Mr. Loulan said in a prepared statement.
"This move will expand Exel´s reach into our supply chain network beyond its current effective management of our distribution centers," he said.
Goodyear sees additional streamlining opportunities throughout the supply chain, particularly to the benefit of Goodyear´s independent dealer network through continuing fill-rate improvements, Mr. Loulan said. The company did not elaborate on specific changes that may take place.
The agreement will not affect the extent of Exel's involvement in Goodyear's tire distribution centers, the spokesman said. Goodyear works with a five outside logistics providers in this area in addition to running some itself, and each is an open bid process, Mr, Loulan said.