Arvato Supply Chain Solutions Continues to Grow in China

Arvato Supply Chain Solutions is continuing its expansion in China. In 2022, two new customers from the e-commerce sector were acquired, for whom the B2C business is now managed at the Shanghai location. Overall, 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.

(Gütersloh/Shanghai) One of the new customers is the American dietary supplement brand GNC, for which an average of 10,000 orders per month are currently processed, ordered by online shoppers through WeChat and T-Mall. Arvato Supply Chain Solutions leverages the advantages of the integrated supply chain and connects warehousing and B2C order management for GNC at the Shanghai logistics center. The management of product batch numbers and the first-in-first-out strategy is carried out using automatic control devices such as electronic put-to-wall solutions and automatic RF scanners, significantly improving picking efficiency and thus contributing to the optimization of the entire supply chain.

“Both Arvato’s warehouse management and process monitoring are highly regarded, and the staff is very well trained,” emphasizes Andy Xu, Supply Chain Manager at GNC. For Raoul Kuetemeier, Head of Arvato Supply Chain Solutions Asia, the services for GNC, considering the current market trend and developments in the health and nutrition sector, are also an important entry into a new business field. “This market is growing rapidly and is part of our strategic expansion. We are therefore very pleased to collaborate with GNC, which includes not only B2C logistics but also retail supply, and we will fully support the company’s growth plans in the Chinese market in the future.” Currently, GNC’s business in China is expanding very quickly.

Two New E-Commerce Customers

The second new e-commerce customer at Arvato’s logistics center in Shanghai, Qingpu, is an emerging 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 warehouse space solely for this customer. In addition to numerous warehousing services, order management for B2C orders via T-Mall and transport control are also taken over.

Continuing on a Growth Path

“We are continuing on a growth path in the e-commerce sector,” says Li Zhang, Head of Arvato Supply Chain Solutions China. “With our new customer, we were able to leverage our expertise in the footwear industry and our efficient peak management for online orders. We achieved very good performance during last year’s Double-11 shopping event, Singles’ Day in China. After representatives of the well-known brand in China were able to convince themselves of our highly efficient processes during a visit to our warehouse in Shanghai Qingpu, we received the order.”

Demand for Logistics Services in China Will Increase

According to Li Zhang, the demand for warehouse and logistics services in China is expected to continue to rise in the future. The expansion of online web shops and the growth of social media platforms such as WeChat and JD are not only driving the rapid development of online shopping malls but also increasing the logistics and fulfillment needs for online business.

Photo: © Arvato Supply Chain