Penske Logistics has announced that Eaton Corp. has selected the firm to serve as its lead logistics provider for the company's North American-based automotive and truck business segments.

Under the agreement, Penske Logistics will manage the inbound supply chain for these segments. This process encompasses the material flow of thousands of component products from more than 300 suppliers into Eaton's North American manufacturing locations.
"We are very pleased to work with Eaton in the U.S. and Europe," said Penske Logistics President Vince Hartnett. "Our goal is to help customers drive supply chain excellence and enable them to focus on running world-class manufacturing operations."
Penske Logistics is working with Eaton to improve the efficiency of its inbound supply chain. Part of the improvement already under way includes moving to a highly efficient pull system, driven by Eaton's production schedules, versus the system currently in place. Penske Logistics also has a dedicated logistics center and management team focused on North American transportation management and network design for Eaton.
"Our team is working to standardize processes, introduce new metrics and systems for better forecasting and supply chain visibility, reduce inventory, and improve both static and dynamic routing," added Hartnett.
Mario Hegewald, Eaton's director of Global Logistics, added, "We view this program with Penske Logistics as a critical strategic project for 2006. Penske has already begun implementation of its Transportation Management System and currently manages Eaton's day-to-day inbound transportation. We will rely on Penske Logistics' expertise and technology to optimize our North American logistics operations through network redesign and shipment consolidation."
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