French Connection teams up with Kuehne + Nagel
By: David Howells
26 September 2011
Logistics firm Kuehne + Nagel has secured a deal estimated to be worth millions with fashion retailer French Connection, retailgazette.co.uk reports.
The deal will see Kuehne + Nagel handle distribution for the retailer from its site at Thurrock in Essex. The contract will see the firm take responsibility for storage, picking and packing of around seven million units a year at the brand's 140,000-square-foot facility.
These items will include both boxed and hanging garments; preparing them for transport to some of the retailer's flagship London stores, as well as others all over the UK.
The signing of the five year contract could see Kuehne + Nagel look towards hiring drivers as the firm looks to invest a great deal into the new contract.
French Connection meanwhile will see the deal as a way of further expanding recent growth figures, which saw the chain report year-on-year growth of seven per cent in the six months ending July 31st 2011. Its revenue now totals £102.8 million, something it believes can grow with more efficient distribution.
Speaking to logisticsmanager.com of the contract, French Connection's head of supply chain and logistics, Steve Pragnell, explained: "We moved into our current facility five years ago and felt that it was time to look as what we were doing and drive towards a leaner model.
"It is during these challenging times that we maintain our service offering to our customers, but drive costs down. Kuehne + Nagel displayed the same principles throughout the whole tender process and is well equipped with KNPS to be able to meet our goals."
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