Kuehne + Nagel wins a seven-year contract from Kronenbourg

Kuehne + Nagel was selected by Brasseries Kronenbourg, the largest brewer in France, to partner it in the outsourced management of its distribution centres in France.

Kuehne + Nagel will support the brewer in the operational deployment of its new national distribution concept, moving from direct deliveries out of the production facility in Obernai near Strasbourg to an outsourced network of regional distribution centres.

Kuehne + Nagel has been serving the off-trade channel (grocery retailers, supermarket stores etc.) since January 2008. In a phased implementation process, operations will be extended to include the on-trade channel (restaurants, pubs etc.) as well as return flows, after the summer period. Once the logistics set-up is fully operational as of early 2009, Kuehne + Nagel will manage four regional distribution centres, strategically located in Paris (Châtres/ 77), Bordeaux (Blanquefort/ 33), Lyon (St-Quentin-Fallavier/ 38), and Rennes (St-Méen-Le-Grand/ 35).

The four shared-user facilities will feature a total 96,000 sqm of warehouse space and handle over 900,000 pallets in/out per year, providing high seasonal adaptability levels. In peak seasons, the network will manage up to five 28-wagon trains every day.

Kuehne + Nagel's operations include the receipt of full pallets delivered by train from the Obernai plant, warehousing and order preparation, as well as dispatch of palletised goods. In addition, the logistics company is in charge of a dedicated transport management team, ensuring the optimisation of all flows out of Obernai.

"This significant reorganisation will allow us to increase delivery frequency, enhance the returns management, as well as to increase storage flexibility," commented Regis Holtzer, Supply Chain Director of Brasseries Kronenbourg. "The new logistics scheme will guarantee stable, high service levels even during peak seasons when road transport capabilities are limited," he also added.

Luc Ducaroir, Kuehne + Nagel's South West Europe Senior Vice President Contract Logistics, added: "This major outsourcing contract award from Kronenbourg is a strong confirmation of our network study and reengi-neering capabilities, as well as of our ability to rapidly and efficiently deploy optimally designed distribution models, working closely with the customer from the specifications phase through to the implementation phase. Not least, the contract supports our efforts of establishing a shared distribution network for the drinks market in France."