Henkel (China) Investment Co., Ltd has awarded Kuehne + Nagel a two-year contract to manage the Shanghai warehousing operation for Henkel's adhesives business.

To align its supply chain in China and to improve distribution, Henkel Adhesive Technologies has decided to consolidate its warehousing activities in Shanghai.

Kuehne + Nagel is responsible for merging various existing facilities into one shared distribution centre in Shanghai's Putuo District. The new 8,000 square metre building includes a designated area for temperature sensitive and dangerous goods and provides room for future extension, a statement from Kuehne + Nagel said.

The global logistics provider's service package for Henkel consists of receiving goods, quality inspection, storage and picking & packing. In addition, the international logistics provider will be in charge of returns handling, as well as the shipment of full pallets, boxes and sales units. The value-added services for Henkel encompass re-packing and relabelling.

"In Kuehne + Nagel we have found a partner who can ensure full inventory visibility throughout the entire supply chain to improve forecast accuracy and inventory rotation," said Patrick Westkamp, APAC leader for Logistics Purchasing at Henkel Adhesive Technologies.

Kuehne + Nagel added that it already manages warehousing operations for Henkel in Malaysia, Canada and France.

Source: Shipping Gazette