The centralising of the distribution point for the chain will help processors cuts costs out of their supply chains said Kuehne + Nagel, which will take over the management of Agorà warehousing operations. The Switzerland-based logistics provider said this month that Agorà had awarded it a six-year contract to centrally manage its ambient foods warehousing operations for the retailer's network of stores across northern Italy. Agorà retail brands include Iperal-Comservice, Poli, Tigros and Sogegross. Ruggero Poli, managing director of Kuehne + Nagel Italy, said the outsourced operations would lead to operational savings and increased delivery frequencies at no additional costs. Kuehne + Nagel will use a shared-user distribution centre in Brignano Gera d'Adda, east of Milan. A total of 35,000 sqm of warehouse space is now dedicated to Agorà's products. In the past, Agorà managed its stocks at separate warehouses across the region. By early 2008, the retailer's network of 350 points of sale across northern Italy will be supplied with a range of 12,000 different grocery items from the facility. It will be halding about 36 million cases annually, all received, stored, picked and loaded by Kuehne + Nagel, the company said. The warehouse operations will use radio frequency technology and a pick-to-voice order preparation system. The systems will ensure the highest levels of picking accuracy and productivity possible, Poli said. Supplier stock periods are expected to be reduced by more than 15 per cent, he said. The introduction of new items into the Agorà network will be significantly easier and quicker, he claimed. "The centralisation of logistics operations at Kuehne + Nagel's Brignano Gera d'Adda facility under the new agreement significantly enhances overall stock management and allows for efficient and detailed monitoring of flows," he said. Antonio Tirelli, chief executive officer of Agorà Network, said the company started redesigning its supply chain last year. The redesign looked at the whole supply chain, from purchasing to sales administration and stock management. The decision to outsource warehouse operations to Kuehne + Nagel was another step in that direction. "The ultimate goal is to provide our affiliates with a more responsive service and consistently high quality levels," he said. In Italy, Kuehne + Nagel operates across 27 locations with 600,000 sqm of space under management. The national company has a workforce of 2,000 employees.
