Italian retailer outsources food warehousing to Kuehne + Nagel
Italian retailer Agor' Network Srl has awarded Swiss logistics giant Kuehne + Nagel a six-year contract to centrally manage its foods warehousing operations for its network of owned and affiliated stores across northern Italy.
Kuehne + Nagel will dedicate 35,000 square meters of warehouse space to Agor' at its shared-user distribution center in Brignano Gera d’Adda, east of Milan. By early 2008, the retailer’s network of 350 points of sale across northern Italy will be supplied with a range of 12,000 different grocery items from the facility.
Agor' had managed its stocks at separate warehouses across the region. Agor' said it expects supplier stock periods to be reduced by more than 15 percent due to the centralization.
“Outsourcing our warehousing activities to Kuehne + Nagel represents a decisive milestone in the integration of our operations to better meet the needs of the business and face the market leaders,” said Antonio Tirelli, Agor'’s chief executive officer.
“In 2006, we engaged in a comprehensive redesign and simplification of our supply chain organization, from purchasing to sales administration and stock management. The ultimate goal is to provide our affiliates with a more responsive service and consistently high quality levels.”