UK supply chain partnership a sound proposition for Sennheiser and Arvato
The three-year contract will see the business process outsourcing (BPO) partner distribute consumer and professional audio equipment across 1,000 product lines – including microphones and headsets – to Sennheiser’s UK business customers.
Under the agreement, Sennheiser has relocated its UK supply chain operations to Arvato’s 220,000 sq ft distribution hub in Hams Hall, Birmingham, enabling it to benefit from economies of scale. The move will also generate savings of up to 50 per cent on the company’s distribution costs by gaining access to Arvato’s established relationships with a range of high-quality carriers.
Arvato will handle more than 7,000 orders annually and will distribute products to Sennheiser’s UK customers, which include professional musicians, music shops, distributors, retailers, systems integrators, sound engineers and recording studios, as well as the aviation sector to which it supplies specialist headsets.
The Arvato team in Hams Hall will also provide product-kitting services and an emergency courier solution, to ship last-minute orders to the live event market.
Arvato was selected due to its track record in technology logistics, which includes partnerships with Toshiba, Bosch and Universal Music. The ability to combine Sennheiser’s own inventory management software with Arvato’s proven warehouse and carrier management systems was a key requirement of the partnership.
"This new strategic partnership with Arvato will ensure our UK distribution activities are in safe hands while we focus on sales and marketing activities,” said David Brinsden, Director of Finance & Operations, Sennheiser UK Ltd. "We manufacture premium products and it’s vital that our customers receive the highest quality service from ordering through to delivery. Arvato’s expertise and the team’s flexibility has enabled us to make a significant operational change without any disruption to our customers.”
Markus Schmücker, Managing Director, Supply Chain Solutions, Arvato UK & Ireland, added: “We share Sennheiser’s dedication to deliver an excellent customer experience throughout the supply chain and are proud to have earned the trust of another leading brand. The technology market is a key growth market in our strategy and this contract marks another step forward for our UK supply chain business.”
The agreement also includes distribution for a number of affiliated brands for which Sennheiser currently acts as UK distributor.
For more information, please go to http://www.arvato.co.uk