Sony Music and Arvato prematurely prolong European distribution
Sony Music Entertainment and Arvato SCM Solutions have extended their current contract for the European distribution via Arvato's site in Atton, France, early and on a long term-basis. With the new contract both companies continue their longstanding cooperation in logistics. It includes the delivery of Sony Music products on the market of nine European countries, as well as export deliveries all over the world and to other distribution centers of Sony Music in Scandinavia, Spain and the UK.
With this early contract extension, the companies set the stage for further consolidation of the physical delivery within the music industry. Against this background, the integration of logistics for countries of other music majors was being done at the Central European Arvato distribution center Atton in 2012. Another step towards a bundled process solution was the transfer of the delivery of Sony Music products for the Italian market one and a half years ago.
In close cooperation with its customers Arvato is expediting concepts to promote and exploit potential synergies in logistics processes as well as in transport management. For the extension of the contract a new pricing model was developed in close coordination with Sony Music. It is tailored to the specific requirements of the provider as well as of products, markets and trade. Various parameters and guidance mechanisms make it possible to control expenditures and costs efficiently. The division-specific service solution provides appropriate measures to reduce costs in a declining market to ensure adequate logistics which has proved to be successful for many years.
»Arvato has committed itself to the music business in Europe on a long-term basis, and has presented a coherent approach towards consolidation within this industry. It enables us to operate the physical supply chain cost-effectively in the future and under difficult market conditions,« said Gerhard Blum, senior vice president distribution and supply chain international at Sony Music Entertainment, referring to the logistics solution that is in line with the specific product and market requirements.