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Etihad Airways Engineering signs LOI with DHL to outsource internal logistics functions

LBR Staff Writer Published 22 June 2017

Etihad Airways Engineering said it plans to outsource its entire internal logistics functions to DHL Supply Chain, a division of Deutsche Post DHL and is affiliated with DHL Express.

In a letter of intent (LOI) signed by the two companies, DHL Supply Chain will assume management of the MRO’s stores, local transport movements and associated supply chain planning at the Etihad Airways Engineering hub at Abu Dhabi International Airport.

Through its logistics planning and control, DHL intends to improve Etihad Airways Engineering's supply chain operations, enabling to align with storage capacity planning and inventory policies.

DHL will also introduce several changes in the layout of Etihad's current warehouse to effectively use the space and establish an external off-airport warehouse able to accommodate necessary inventory and part storage.

Etihad Airways Engineering CEO Jeff Wilkinson said: "We see this agreement as a win-win opportunity not just for Etihad Airways Engineering and DHL Supply Chain, but also for our customers around the world who will be served more efficiently and cost effectively as an outcome of the partnership."

DHL Supply Chain Middle East, Russia and Turkey CEO David Christmas said: “Our new partnership will build on and broaden this relationship, synergizing the unique strengths of each partner to maximize efficiency and profitability.”

In May, DHL Supply Chain deployed Internet of Things (IoT) technology in its warehousing operations, as part of its efforts to effectively conduct operational activities.

DHL, along with Cisco and start-up Conduce, is testing the IoT technology at three pilot sites in Germany, the Netherlands and Poland.

Image: DHL Supply Chain will manage stores, local transport movements and associated supply chain planning at the Etihad Airways Engineering hub. Photo: courtesy of Deutsche Post AG.