Fashion retailer French Connection has announced a five-year contract with Kuehne + Nagel for the warehousing and distribution of its products across the UK.
The new partnership aims to increase efficiency, profitability and service quality for the retailer, using the KN Production System (KNPS), a technology which aims to improve supply chain processes.
The operation is based at a 140,000 sq ft facility near Thurrock in Essex, a location that the retailer hopes will improve its distribution across London.
Steve Prangnell, Head of Supply Chain & Logistics at French Connection welcomed the deal and explained the importance of speeding up the distribution process.
“We moved into our current facility five years ago and felt that it was time to look at what we were doing and drive towards a leaner model,” he said.
“It is important 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.”
The announcement follows positive financial results for the retailer, which reported year-on-year sales growth of seven per cent in the six months ending July 31st 2011, with revenue totalling £102.8 million.
Speaking at the time of the report’s publication, Chairman and CEO of French Connection Stephen Marks remained cautious of the challenges faced by the industry.
“We do not anticipate any easing in the retail environment during the second half of the year,” he commented.
Mark Jenkins, Retail Business Unit Director for Kuehne + Nagel UK, pointed out that logistics remains a key factor during difficult economic times.
“This new partnership reflects Kuehne + Nagel’s ability to serve the challenging fashion industry with intelligent and innovative logistics solutions,” he explained.
“We are delighted to be working with French Connection and look forward to a successful collaboration.”