Agrati relies on Kuehne + Nagel to outsource its distribution centre

The Agrati Group, a European market leader in the design and production of fastening systems for the automotive and industrial sectors, has awarded Kuehne + Nagel a four-year contract for the logistics management of its finished products in Italy.

The newly-built warehouse in Trezzo sull’ Adda, 30 kilometres northeast of Milan, which was specifically designed by Kuehne + Nagel, centralises on more than 17,000 sqm all of Agrati’s finished product inventories. A site extension up to 27,000 sqm is planned for 2010.

In the new centre, 100,000 pallets will be managed per year representing 3,000 stock-keeping units of technical parts, such as bolts, screws, and nuts as well as complex-shaped parts, totalling to some 54,000 tons of products handled on behalf of Agrati.

Under the agreement, Kuehne + Nagel is in charge of inbound shuttling from Agrati’s production facility in Veduggio con Colzano (Mi), warehousing, order picking, order preparation, labelling of boxes and dispatching. In a next implemen-tation phase, operations will also encompass inbound quality checks and packaging activities involving different packaging boxes. For such services Kuehne + Nagel will use about 20 manual stations, 35 semi-automatic machineries and 6 packaging machineries.

Decisive factors for Agrati to award the contract to Kuehne + Nagel were the logistics company’s experience in managing technical parts’ supply chains in the automotive industry as well as its ability to handle seafreight imports. “Our solution is based on a detailed review of Agrati’s previously in-house managed warehouse layout and physical flows, in-depth project implementation and staff training schedules during the negotiation phase, which we can consider a confirma­tion of our attractive offer of efficient integrated logistics solutions,” commented Ruggero Poli, Managing Director of Kuehne + Nagel Italy.

Paolo Pozzi, Managing Director of Agrati SpA, commented: “Working with
Kuehne + Nagel will enable us to improve our flexibility in order to satisfy the different logistics requests of our customers in terms of packaging, labelling and delivery procedures. At the same time Agrati will optimise the internal material flows improving costs and efficiencies.”