TNT has announced an outsourcing agreement with Telecom Italia.
TNT Logistics Italia and Telecom Italia have announced a three-year outsourcing logistics agreement, having received the approval of the Italian Competition Authority and satisfied union consultation requirements.
TNT Logistics will take over the running of Telecom Italia’s Telecom Customer (business and private) fixed-line telephony product warehousing and distribution, as well as the more technical network support and installation work.
Telecom Italia will transfer the company unit, along with the 338 employees that currently undertake these operations, directly to TNT Logistics Italia. Also under TNT’s control will be 75,000 square meters of leased premises comprising six central warehouses and 100 other storage facilities in a number of Italian cities. Over 4.5 million telephones and telephone installation items will be handled per year.
This new deal represents one of the largest logistics outsourcing agreements seen in Italy in recent years, and should allow Telecom Italia to improve service quality. The contract, worth E120 million over three years, also strengthens the core market of TNT Logistics.
It builds upon the company’s existing contracts with Italian and international telecoms companies and reaffirms it as the dominant operator within the Italian telecommunications logistics market. TNT Logistics’ MD, Roberto Rossi, stated that Europe-wide, the company is becoming an increasingly strong presence in telecoms logistics activities.
The deal also comes after TNT’s parent company, TPG, announced that it expects to branch out in its European logistics operations and turn its focus gradually away from automotive logistics. At present, the automotive sector accounts for around 37% of TPG’s logistics revenues, a figure that the Dutch company expects to be closer to 30% by 2005.
Although TPG has made recent high profile automotive contract wins, contracts such as this latest with Telecom Italia suggest that it still intends to vigorously pursue market share in other sectors.
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