Shares of TVS Supply Chain Solutions rose as much as 8% on Wednesday after the TVS Group company signed a five-year strategic agreement with Daimler Truck South East Asia Pte Ltd, a Daimler Truck AG company, for its Integrated Supply Chain Solutions (ISCS) service in Singapore.

The deal solidifies TVS Supply Chain Solutions' position as the primary logistics partner for Daimler Truck AG, the world's largest commercial vehicle manufacturer, and underlines the company's commitment to providing 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 achieve key operational objectives, including establishing a robust logistics solution for the distribution of spare parts and related items, optimising supply chain operations and servicing Daimler Truck South East Asia’s sales network, dealers and workshops across 16 countries in the Asia Pacific region from its strategic logistics centre in Singapore.

The aim of the partnership is to efficiently manage 8,000 SKUs (Stock Keeping Units) and 65,000 order lines per year, taking into account a wide range of parts with different storage requirements. In addition, it will ensure smooth transport across multiple modes of transport, including air freight, Full Container Load (FCL), Less than Container Load (LCL) and road transport, coupled with customs clearance and Dangerous Goods (DG) declarations.

TVS Supply Chain Solutions plans to deliver a customized IT solution suite based on an online platform that will provide inventory visibility and ordering capabilities to Daimler Truck Parts Centre (DTPC) customers in Southeast Asia. The IT solution will also provide DTPC SEA with integrated inventory management, spare parts ordering, parts pricing, invoicing and data analytics capabilities.

Daimler Truck South East Asia conducted a thorough evaluation process before engaging TVS SCS to provide these new services, the company said in a statement.

“The scope and prestige of this partnership reflects the trust placed in TVS SCS to manage critical supply chain operations,” says Vittorio Favati, CEO of TVS SCS Global Forwarding Solutions. “We are excited about the opportunity to deepen our partnership with Daimler Truck AG and support them in achieving their strategic objectives, particularly in their distribution and warehousing solutions in Singapore. The long-standing relationship between Daimler and TVS SCS is a testament to the shared commitment of both companies to operational excellence and innovation,” adds Favati.

“We are delighted to be moving into our own commercial vehicle warehouse and to be able to focus entirely on the needs of our Daimler Truck customers in the region. TVS SCS was chosen as our logistics partner due to its unique service offering and its performance as a committed and passionate warehouse and logistics provider. We look forward to a successful collaboration,” says Christoph Stemmer, Vice President Customer Services and Parts, Mercedes-Benz Bus and Special Truck Sales SEA.