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Pirelli, TNT extend distribution agreement May 10, 2006

Italian tire manufacturer Pirelli has chosen to consign its German logistics operations for another three years to TNT Logistics, the integrated supply chain solutions division of Dutch group TNT.

Under the terms of the contract, TNT Logistics will manage the Pirelli factory warehouse in Breuberg, Odenwald, and the national distribution center in nearby Otzberg.

TNT will assume responsibility for receiving and warehousing tires from various international plants and preparing orders for 24-hour distribution to Pirelli customers throughout Germany. This service includes order administration and tracking of shipments.

“[A] market survey has shown that customers see Pirelli as the market leader when it comes to logistics,” explained Christian Muhlhauser, director of logistics and planning for Pirelli Deutschland. “By integrating TNT in the Pirelli processes, we have been able to increase efficiency and quality while reducing costs.”

In 2005, Pirelli said its warehouse in Otzberg benefited from TNT Logistics’ lean warehousing approach that aims to increase productivity, reduce costs and improve service by eliminating waste in the logistics processes.

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