Shares of TVS Supply Chain Solutions rose as much as 8% on Wednesday after the TVS Group company signed a five-year strategic contract with Daimler Truck South East Asia Pte Ltd, a Daimler Truck AG company, for Integrated Supply Chain Solutions (ISCS) service in Singapore.
The deal solidifies TVS Supply Chain Solutions as a primary logistics partner for Daimler Truck AG, the world’s largest manufacturer of commercial vehicles. It also reinforces the organisation’s commitment to delivering logistics services between Germany and the Asia-Pacific region.
Reacting to the news, shares of TVS Supply Chain Solutions rose 7.8% in intraday trade to hit a high of ₹182.55 on the BSE.
The collaboration between TVS Supply Chain Solutions and Daimler Truck South East Asia aims to address critical operational objectives including establishing a robust logistics solution for distributing spare parts and related items, streamlining supply chain operations and servicing Daimler Truck South East Asia’s distributor network, dealers, and workshops in 16 countries in the Asia-Pacific region from its strategic logistics centre in Singapore.
The partnership targets efficient management of 8,000 SKUs (stock keeping units) and 65,000 order lines annually, accommodating a diverse range of parts with varying storage requirements. It also aims to ensure smooth transportation across multiple modes, including air, Full Container Load (FCL), Less than Container Load (LCL), and road transportation, coupled with customs clearance and Dangerous Goods (DG) declarations.
TVS Supply Chain Solutions plans to deliver a customised IT solution suite, centred on an online platform that provides inventory visibility and ordering to Daimler Truck Parts Centre (DTPC) Southeast Asia customers. The IT solution also provides DTPC SEA with an integrated capability for inventory management, parts replenishment ordering, parts pricing, invoicing and data analytics.
Daimler Truck South East Asia conducted a thorough evaluation process before awarding TVS SCS with the opportunity to provide these new services, the company says in a statement.
“The scope and prestige of this partnership reflect the trust placed in TVS SCS to manage critical supply chain operations,” says Vittorio Favati, CEO of TVS SCS Global Forwarding Solutions. “We are thrilled about the opportunity to deepen our partnership with Daimler Truck AG and assist with their strategic goals, particularly the distribution and warehousing solutions in Singapore. The long-standing relationship between Daimler and TVS SCS is a testament to both companies sharing a commitment to operational excellence and innovation,” Favati adds.
“We are thrilled to move into a dedicated commercial vehicles warehouse and by doing so, to focus entirely on the needs of our Daimler Truck customers in the region. TVS SCS has been chosen as our logistics partner due to their unique service offer and their performance as a dedicated and passionate warehouse and logistics provider. We are looking forward to a successful collaboration,” says Christoph Stemmer, vice president Customer Services and Parts, Mercedes-Benz Bus and Special Truck Sales SEA.
