Kuehne + Nagel secures record breaking global supply chain management contract

Leading global logistics provider Kuehne + Nagel has recently signed one of the largest ever supply chain management contracts with ARG, the Argos Retail Group, consisting of Homebase and Argos. Owned by GUS, ARG is the UK’s biggest non-food retailer and has plans to accelerate its direct import business with the assistance of Kuehne + Nagel. This will lead to the shipment initially of around 65,000 TEUs to the UK over the next year, mainly from the Far East.

Since Homebase joined ARG in November 2002 the group has been aware of the advantages in combining resources. This contract will ensure that ARG has the ability to maximise supply chain opportunities across the organisation and will provide economies of scale through reduced shipment costs. Kuehne + Nagel offers the flexibility to manage separate processes for both retailers, while shared management information and operational capability allows ARG to identify and take advantage of group synergies. At the same time it will be able to maintain a clear overall view of its freight forwarding operations.

ARG and Kuehne + Nagel have already enjoyed a successful partnership lasting over ten years, which began when Argos started to source products from Far East suppliers. Today, Kuehne + Nagel employs a dedicated account team to manage the Argos business from point of origin to point of delivery. This includes vendor management, consolidation and pick and pack services, management of UK deliveries based on visibility and prioritisation of stock levels and off dock storage options.

Through the recent contract signed with the largest freight rail operator in the UK, EWS, Kuehne + Nagel is also providing an advanced rail solution to the group in order to address the issues of road and port congestion in the UK.

“Kuehne + Nagel’s end to end supply chain management capability, in terms of systems, service and operations is a perfect match for our current and future requirements and its visibility solutions offer an extremely sophisticated management information tool.” States Derek Young, Head of Purchasing for Homebase.

Peter Ulber, Chief Executive of Kuehne + Nagel UK and Ireland, comments “We are excited by the scope of this new partnership with Homebase and Argos and look forward to executing such a challenging contract in terms of size and complexity.”http://www.kuehne-nagel.com