Audi Volkswagen has signed a three-year contract with Kuehne + Nagel for warehouse management and spare parts distribution to the aftermarket in South Korea. Kuehne + Nagel is building a new logistics centre near the Incheon seaport as part of the deal, scheduled to be fully operational by September this year. The foundation stone for the new building was laid in a ceremony held in April (pictured).
The company would not comment on the level of investment.
Once completed, the logistics centre will provide 4,500m2 of dedicated warehouse space for 22,000 stock-keeping units of Audi Volkswagen and will have expansion possibilities for further 2,000m2.
Kuehne + Nagel will handle the receiving, picking and packing, and national distribution of 875 types of parts per day to dealers throughout the country.
There are three different scenarios for delivery according to Kuehne + Nagel (Asia Pacific) Management spokesperson Corinna Lam. A weekly stock order delivery, a twice daily delivery for rush orders and what is called a VOR or ‘vehicle on road’ delivery, which requires urgent repair at the dealer site. This latter service has no limitation on frequency.
The company is using a SAP ET2000 module called AVK ERP for the picking and packing function.
Kuehne + Nagel is also supporting BMW in South Korea and since 1996 has been supplying it with an extensive range of services including storage, picking and packing operations, return handling, and promotional kitting.