Kuehne + Nagel said it will consolidate two of CNH Industrial’s separate business operations into one single distribution centre and deploy IT systems to manage the complexity of the operation by enhancing transparency and monitoring. The company did not disclose the investment in the consolidation.
The 2,550 sq.m non-bonded logistics centre is in Fengxian, Shanghai, and has been strategically positioned near transport links to support CNH Industrial’s domestic distribution requirements across China. The facility will handle 16,000+ spare part SKUs (stock keeping units) and 1,500 order lines per month. In addition, Kuehne + Nagel is also looking after CNH Industrial’s customs needs.The inbound parts will be delivered from domestic suppliers as well as those imported from Italy.
“We are very pleased that CNH Industrial has selected Kuehne + Nagel to manage their parts facility in Shanghai,” said Peer Rasmussen, director Shanghai Cluster, Kuehne + Nagel. “We will focus on delivering operational excellence to support CNH Industrial even better serve its Chinese customers. This new contract is a result of our growth strategy in China and a further milestone in expanding the long-term global relationship between the Kuehne + Nagel Group and CNH Industrial.”
Kuehne + Nagel already manages European spare parts logistics for Iveco, a division of CNH that makes light, medium and heavy commercial vehicles. It also has specific logistics agreements with CNH for Russia and Germany, as well as additional agreements in China.