Kuehne + Nagel optimises nationwide retail supply chain for German media giant in China

Bertelsmann Book Club, a business under German Bertelsmann AG, one of the world's leading media companies, has selected Kuehne + Nagel to manage the supply chain for its store channel in China. Building on Bertelsmann's growth objectives, the flexible solution lowers lead times through enhanced inventory control and ensures higher levels of delivery and service quality.

Within the scope of the contract, Kuehne + Nagel manages inbound receipt, storage and distribution to the stores of Bertelsmann Book Club across Mainland China for a wide range of products including books, CDs, gifts and promotional material at its multi-client facility in Shanghai. Value-added services encompass quality checks of incoming books from publishers, consignment stock management, promotions kitting, picking, returns handling, and the application of a scan-pack solution.

In order to significantly optimise lead times and transport costs, the customer's national distribution hub was moved from Beijingand relocated at Kuehne + Nagel's modern Shanghaifacility.

"We need a logistics provider who can meet our increased demands for order fulfilment, inventory management and operational efficiency.  Kuehne + Nagel has already helped us significantly improve our supply chain performance to our stores and we are confident that they will leverage their expertise while we continue to expand our business here" commented Bryan Ellis, General Manager of Bertelsmann Book Club in China.

Bertelsmann entered the Chinamarket in 1995, becoming the first international media company to receive certification from the Chinese government to embark on the book business.

"We are delighted that our solutions support Bertelsmann's growth objective" said Andy Weber, Managing Director of Kuehne & Nagel (Asia Pacific) Management Ltd. "What's more, with our globally standardised warehouse management system, modular applications can be promptly configured, catering to new book releases, shop openings and other requirements by Bertelsmann's value chain."