DHL Supply Chain and materials manufacturer Nitto Denko Corporation have entered into a lead logistics provider agreement in Japan.

Under the five-year agreement, DHL will provide inbound, storage, outbound, value-added services and transport management services at the logistics sites at Nitto’s eight business offices in Japan. DHL will also manage the operations of the just-in-time warehouses that serve Nitto’s customers with a focus on the automotive industry.

“We are thrilled to be the LLP partner of Nitto, a global leader in their field,” said Gavin Murdoch, president and representative director of DHL Supply Chain Japan. “They recognized our expertise in providing LLP solutions to drive standardization and optimize cost – particularly in the Japanese context, as they saw the success we have had with Konica Minolta in a very similar agreement. We look forward to sharing the knowledge we have gleaned from operating around the world, and delivering new value to Nitto.”

Under the LLP partnership, Nitto will benefit from reduced costs through optimized warehouse operations, enhanced transportation, restructured domestic distribution networks, standardized work processes and more effective management methods. DHL will also provide value-added services such as the end-to-end planning and design of supply chains. Other services include key-performance-indicator-based quality management, cost management visualization and work process standardization.

Nitto’s logistics activities were previously carried out by subsidiary Nitto Logi-com Corporation, according to DHL.