Arvato services opened up Joint Venture for Supply Chain Management and Transport Services in Shenzhen
Shenzhen. On February 20, Arvato services staged the opening ceremony of a new logistics center in Shenzhen in South China that is operated in cooperation with the local mobile communications providers Telling Group and Sinomaster Group. Arvato services holds 51% of Arvato Logistics Services China Ltd., the new joint venture company. In the future, the joint venture company will provide supply chain management services for China’s mobile communication and high-tech electronics industry. The portfolio offered includes distribution, pick-and-pack, fulfilment and value-added services.
“Arvato is interested in becoming a well-known and respected logistics services provider for Chinese companies in the telecommunication industry and being able to offer its logistics services worldwide to its existing international clients. Setting up a joint venture with mobile phone wholesalers in China is proved to be the most viable and effective option, to further improve Arvato’s China business and expand its logistic and delivery network from local to nationwide within the country,” says Kevin Xu, CEO of Arvato services China.
The joint venture has set up a central distribution center in Shenzhen. It also plans to open and expand several additional smaller distribution locations throughout South China within 2009. Currently, the company focuses on the distribution of mobile phones for the two Chinese partners of the joint venture. Plans for the near future include an expansion of the business activity and the provision of logistics services to external businesses which are in need of high security and high quality warehousing and distribution networks. Raoul Kuetemeier, CEO of the joint venture says: “The Shenzhen logistics center is only the first step in creating a nationwide network of distribution centers to cover Mainland China. The new company will focus on the warehousing and distribution of high value products and value added services as well as after sales management. It is forecast that the joint venture company will distribute at least ten million mobile phones in its first year of operation in South China.”
Being a service provider with worldwide operations, Arvato services contributes its international experience and extensive know-how to the joint venture company. The local joint venture partners additionally have vast experience in the Chinese logistics business and hold leading positions on the mobile communication market throughout the country. The decision to establish the central warehouse in Shenzhen was particularly made in view of the fact that the city’s economic development plans are focused on the logistics industry, thus offering a positive setting for logistic service providers.
Currently China hosts the world’s largest mobile market and is showing steady growth rates. The joint venture company has excellent chances for success because so far, no providers maintain a nationwide distribution network to cover local demand throughout China. On this background, the company will focus on local warehousing and distribution services and not export as most internationals do.
About Arvato services China
Arvato services is a leading global third-party outsourcing provider under Arvato that entered into China market in early 2001, established with headquarter in Shanghai and branch offices in Beijing, Guangzhou and Changchun. In the following years Arvato services successfully expand its business to industries as aviation, automobile, media, tourism, telecommunications, FMCG, financial service etc. and build up strategic partnership with numerous world-renowned companies. It is offering clients customized end-to-end business solutions at every stage in the value chain, with the scope of business expanded from either the pre-sales, sales or post-sales lifecycle.
With more than 270 subsidiaries worldwide, Arvato is one of the biggest internationally networked media and communication services providers. In fiscal 2007, the group of companies that is part of Bertelsmann AG generated sales of € 4.917 bn. Arvato’s worldwide subsidiaries employ more than 60,000 people. Arvato comprises the divisions Arvato print (intaglio and offset printers in Europe and the United States), Arvato services (financial services/data management, full-service CRM services, logistics/supply chain management and direct distribution of knowledge media), Arvato digital services (e.g. replication, fulfillment, distribution/supply chain management, financial services and electronic content distribution) and Arvato systems (international provider of qualified and customized IT services).
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