TNT Logistics UK is taking a 20% stake in Defence Logistic Solutions (DLS), which is bidding for the UK MoD Defence Logistics Organisation’s Future Defence Supply Chain initiative (FDSCi), a programme to streamline logistics for the UK armed forces. A team of equipment and logistics specialists are being provided by TNT to the DLS team bidding for the FDSCi.
The other shareholders are BAE Systems and Westland Helicopters.
FDSCi is a competitive initiative to deliver substantial savings to the DLO while improving operational effectiveness, delivery and visibility of assets. It involves the phased implementation of innovative improvements, particularly in the areas of logistics and information systems.
The successful bidder will be responsible for the storage, distribution and transport of most of the MoD’s logistics inventory; a business with current operating costs of circa £210M a year. Final bids must be submitted in December 2004, with contract award expected in the second quarter of 2005 and final control of FDSCi passing over in the fourth quarter of 2005.
