German logistics company, Arvato SCM Solutions, has opened a distribution centre in Hong Kong for a key high-tech client.
The new site complements the company’s existing network of facilities in Kentucky (US), Ontario (California, US) and Venlo (Netherlands), and was designed and implemented within 18 months across three continents.
The logistics area of the new site is 100,000 square feet (9,290 square metres), with an office space of 4,500 square feet (418 square metres), and is Arvato’s second facility that has opened in Hong Kong in the past four years.
“By building this powerful network, we have set a benchmark that is unparalleled in the industry,” said Arvato SCM Solutions Head of Asia, Raoul Kuetemeier.
“We operate all four sites with the same standards, processes, interfaces, all running the same IT setup based on a full end-to-end SAP solution.
“The extensive logistics and fulfillment services that Arvato is responsible for include inbound, storage including temperature-controlled products, outbound, carrier management of truck, sea and air freight transports, customs brokerage (IOR / EOR) services and numerous value-added services such as country-specific labeling, transformation, bundling, rework and returns dispositioning. Arvato also manages break bulk shipments for cross-border e-commerce.
“From our new site in Hong Kong we serve more than a dozen markets in Asia and are close to the major manufacturing hub in South China,” he said.
For warehouse operations and the smooth flow of goods, the distribution centre is said to be equipped with 12 dedicated loading docks, 3,000 pallet locations in high racking, 500 shelve bins, 100 pallet locations in temperature-controlled storage and two production lines, including heat shrink wrap capability. Four in- and outbound gates are also RFID-enabled.
The implementation of this major high-tech customer is, however, only a first step towards further growth, acccording to Arvato SCM Solutions Senior Director of Hong Kong, Andreas Podwojewski.
“Hong Kong as a freeport with highly efficient import and export processes is ideal for global and regional distribution centres with fast turnover,” he said. “That's why we have decided to invest in additional space so that the site will become a multi-user facility in 2019 for high-tech customers.”
Arvato SCM Solutions is an innovative and international service provider in the field of supply chain management and e-commerce. More than 14,000 employees work together to provide practical and relevant solutions and services worldwide. Using the latest digital technology, Arvato SCM develops, operates and optimises complex global supply chains and e-commerce platforms, as the strategic growth partner for its customers.