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Best Buy Co. is supporting its first store in Shanghai, China with a 6,000-square-meter distribution facility in the Minhang district, located in the southwest part of the city. The big retailer of consumer electronics and office products has selected Germany's Kuehne & Nagel to design and manage the center. The vendor will take into account Best Buy's product mix, material flow requirements and storage areas, as well as the need for modern security measures and installation of Kuehne & Nagel's standardized warehouse-management system (WMS) software. The project will allow for rapid delivery and streamlined processes to ensure reliable replenishment to the Shanghai store, said Patrick Xu, supply chain director of Best Buy Shanghai Ltd. The company chose Kuehne & Nagel for its existing network and expertise in China. In addition, the two entities have had a business arrangement in Canada since 2005. "The new concept put up by Kuehne & Nagel has delivered significant improvements to our supply-chain performance, and we are confident that Kuehne & Nagel's operations will support our continuous expansion in the mainland market," Xu said. Kuehne & Nagel also announced renewal of a contract with Siemens AG for the provision of logistics services between Europe and the U.S. The vendor will continue to handle air and sea brokerage on trans-Atlantic lanes, and perform additional inland services, on behalf of Siemens. Kuehne & Nagel provides monitoring and reporting of freight costs, delivery times and Customs clearance information, among other things.
Best Buy: http://www.kn-portal.com
Siemens: http://www.kn-portal.com
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