Arvato SCM Solutions has recently launched a new distribution center in Hong Kong for a key global high-tech client. With a logistics area of 100,000 square feet and an office space of 4,500 square feet the site complements the existing network of distribution centers in Louisville (Kentucky, US), Ontario (California, US) and Venlo (Netherlands) for this industry leader. The entire network was designed and implemented within eighteen months on three continents. The new warehouse is also Arvato’s second logistics site that has opened in Hong Kong within four years.
“By building this powerful network, we have set a benchmark that is unparalleled in the industry. 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,” emphasizes Raoul Kuetemeier, Head of Asia at Arvato SCM Solutions. 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. Raoul Kuetemeier: “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.”
For warehouse operations and the smooth flow of goods, the distribution center is equipped with twelve 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 RFIDenabled.
The implementation of this major high-tech customer is, however, only a first step towards further growth. “Hong Kong as a freeport with highly efficient import and export processes is ideal for global and regional distribution centers with fast turnover,” explains Andreas Podwojewski, Senior Director of Hong Kong at Arvato SCM Solutions. “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.”