Kuehne + Nagel awarded three-year contract by Philips Mexicana S.A. de CV for warehousing and distribution

Kuehne + Nagel Mexico has been awarded a three-year contract to manage national warehousing and distribution activities for Philips Mexicana S.A. de CV, the Mexican unit of Royal Philips Electronics with headquarters in the Netherlands. The logistics outsourcing contract, valued at 30 million USD, covers Philips’ consumer electronics, domestic appliance, and lighting businesses in Mexico.

The contract award was the result of a 12-month competitive review. Kuehne + Nagel is able provide the necessary logistics expertise and infrastructure to support Philips’ rapid growth in Mexico.

Philips will occupy 120,000 square feet within Kuehne + Nagel’s Tultitlan (Mexico City North) distribution center (DC) – one of ten Kuehne + Nagel DCs throughout Mexico and at the U.S. border. Warehouse management services will include value-added services such as final product configuration, labeling, inspection of returned products, and verification that products meet government requirements for package labeling. Distribution services will encompass carrier selection and management, freight booking and delivery management, including proof of delivery notification.

Kuehne + Nagel’s distribution solution will control costs by consolidating Philips products, where possible, with goods from other clients from the consumer electronics and lighting industry.

According to Elias Jabali, Chief Executive Officer of Philips Mexicana S.A. de CV, “The partnership with Kuehne + Nagel is a critical step in Philips’ strategy to grow the Mexican market. We chose a financially strong, global company that could provide advanced, information-based solutions as we integrate Philips’ supply chain across world regions.”

Ferdinand Kurt, President of Kuehne + Nagel Mexico, said, “We are very proud to be chosen by one of the world’s leading electronics firms. We intend to earn the trust that Philips has placed in us for this very important project.”