Michelin-backed joint venture selects DHL’s end-to-end solution for shipment of synthetic rubber for tire production

  • DHL to coordinate shipment of an important annual volume of synthetic rubber from plant to port for PT SRI, a joint venture between Michelin and Chandra Asri Petrochemical
  • End-to-end solution integrates DHL's cross-business strengths in freight forwarding, warehousing, and customs clearance to support rapid increases in demand
  • Key factors in DHL's selection were industry-specific tire expertise, global network with local knowledge ("glocal" capabilities), supply chain digitization, and innovation approach

J AKARTA, INDONESIA - Media OutReach - 1 November 2018 - PT Synthetic Rubber Indonesia (PT SRI), a joint venture between the Michelin Group and local partner Chandra Asri Petrochemical, has consolidated its plant-to-port supply chain under a single DHL solution for faster, more scalable shipment of increasing volumes of synthetic rubber -- a critical ingredient in modern tire production.

DHL will oversee all road freight transportation, warehousing, and customs clearance of synthetic rubber between the PT SRI plant in Cilegon in West Java to Tanjung Priok port in North Jakarta -- with particular focus on quality and safety as appropriate for Michelin's world-class tire products.

This end-to-end logistics solution will support PT SRI exports to all Michelin plants globally. To ensure uninterrupted high-volume delivery now and in future, PT SRI worked closely with DHL to address all local shipping regulations and requirements during the Cilegon plant's construction -- a pioneering effort for Michelin.

"Global consumption of raw materials for tires increased more than 20% from 45.2 billion tons from 2017 to 54.5 billion in 2018,[1] raising both the market opportunities and pressure on materials producers to deliver to demand," said Vincent Yong, President Director DHL Global Forwarding Indonesia. "DHL's end-to-end solution gives PT SRI the foundation to flexibly scale operations to meet growing future international and domestic demand as it continues to increase.[2] "

Leverage DHL's broad services

The solution for PT SRI integrates core competencies from across DHL's business divisions. This includes shuttle transportation from the PT SRI plant to DHL's warehouse, warehouse management activities, the 125km warehouse- to- port journey, export & import activities including customs clearance, and managing third party contracted carriers for outbound shipments. DHL is also responsible for the timely shipment of rubber samples from Indonesia to global Michelin plants.  

Industry expertise & "glocal" capabilities

"Several other affiliates of the Michelin Group have already outsourced the storage and transport activities to DHL. Since DHL offers the same services locally, we aligned on this partnership between Michelin and DHL and extended it to Indonesia," said Jan Blaauw, Chief Financial Officer of PT SRI. "With DHL's industry-specific expertise, its global network and its extensive knowledge of the Indonesia logistics industry, we were confident that the DHL solution would meet PT Synthetic Rubber Indonesia's stringent compliance and quality requirements, even as demand volumes continue to accelerate and grow."

In future, the partnership may extend to include transportation of synthetic rubber to customers domestically as Indonesia's automotive manufacturing industry continues to grow.

Supply chain digitization & innovation approach

"As the global auto-mobility supply chain continues to grow in complexity, it's more vital than ever for companies to work with their logistics partners. Together they should ensure upstream supply chains remain flexible enough to minimize complexity and optimize current production while also remaining adaptable enough to meet future spikes in demand," said Jan Willem Winkelhuijzen, Managing Director DHL Supply Chain Indonesia.

" The global partnership relationship led by DHL Customer Solutions & Innovation allows partners to accelerate both their innovation agenda and sustainability program by joining forces on local and global projects," added Ilhami Arslanoglu, Vice President Auto-Mobility Asia Pacific , DHL Customer Solutions & Innovation. 

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DHL -- The logistics company for the world

DHL is the leading global brand in the logistics industry. Our DHL family of divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 360,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, energy, automotive and retail, a proven commitment to corporate responsibility and an unrivalled presence in developing markets, DHL is decisively positioned as "The logistics company for the world".

DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 60 billion euros in 2017.

[1] https://www.smithersrapra.com/news/2017/december/global-tire-industry-volume-forecast

[2] https://www.indonesia-investments.com/business/industries-sectors/automotive-industry/item6047?