Arvato Supply Chain Solutions is continuing its expansion in China. In 2022, two new customers in the e-commerce sector were acquired, for whom the B2C business is now being managed at the Shanghai site. In total, the supply chain and e-commerce service provider has a network of nine distribution centers in China with 51,000 square meters of warehouse space.
One of the new customers is the American nutritional supplements brand GNC, for which an average of 10,000 orders per month of health supplements products are currently being processed, ordered by online shoppers via WeChat and T-Mall. Arvato Supply Chain Solutions takes advantage of the integrated supply chain and combines warehousing and B2C order management for GNC at the Shanghai logistics center. Product batch number management and first in first out strategy is carried out using automatic control equipment such as electronic Put to Wall Solutions and automatic RF scanners, which greatly improves picking efficiency, helping to optimize the entire supply chain.
“Both Arvato’s warehouse management and process supervision are highly recognized, and the operation of staff is very skilled,” emphasizes Andy Xu, Supply Chain Manager at GNC. For Raoul Kuetemeier, Head of Arvato Supply Chain Solutions Asia, the services for GNC are also an important entry into a new business segment, in view of the current market trend and the development in the health and nutrition industry. “This market is growing rapidly and is part of our strategic expansion scope. We are therefore very excited to enter into this cooperation with GNC covering both retail and B2C logistics and will ensure that we support the company’s growth plans for the domestic Chinese market.” Currently, the GNC brand’s business in China is expanding rapidly.
The second new e-commerce client at Arvato Shanghai’s logistics center in Qingpu is an up-coming Chinese company in the footwear industry, for which more than 30,000 orders per month are already being processed. In the multi-user warehouse, Arvato Supply Chain Solutions uses around 1,500 square meters of storage space for this customer alone. In addition to numerous warehouse logistics services, order management for B2C orders via T-Mall and transport control will also be taken over.
“We are still on course for growth in the e-commerce sector,” says Li Zhang, Head of Arvato Supply Chain Solutions China. “We were able to score points with our new customer thanks to our expertise in the footwear industry and our efficient peak management of online orders. For example, we performed very well at last year’s Double 11 sales event, Singles’ Day in China. After representatives of the brand, which is well-known in China, were able to see our highly efficient operations for themselves during a visit to our warehouse in Shanghai Qingpu, we were then awarded the contract.”
According to Li Zhang, demand for warehouse and logistics services in China will continue to grow in the future. This is because the expansion of online web stores and the growth of social media platforms such as WeChat and JD are not only continuing to drive the rapid development of online shopping malls, but are also increasing the logistics and fulfillment needs for online business.
With its growth in China, Arvato Supply Chain Solutions is in the current fiscal year successfully pursuing its internationalization and expansion strategy. In FY 2021, the company expanded profitably with organic growth of 15.1 percent, especially internationally.