Virgin Megastore has awarded Kuehne + Nagel a five-year contract to support the optimisation of its inventory management in France.
During that period the entertainment and lifestyle retailer is also set to invest 30 million euros in supply chain optimisation and the centralisation of over 60 per cent of its product flows.
K+N will manage central inventory and supply all 36 stores throughout the country.
It will operate from Virgin Megastore’s 8,000 sq m distribution centre in Bondoufle, south of Paris, where more than 30,000 SKUs are handled before being distributed to stores.
Products managed by K+N will include gift packages, movies, video games, consoles, electronics, stationery and accessories, while books and music will continue to be directly replenished by stores.
Through the contract, Virgin Megastore aims to limit multiple data capture, optimise inventory management, rationalise product ranges and trace products, with the ultimate goal of increasing sales.
Jean Noël Reinhardt, Virgin Megastore’s CEO, said: “This co-operation is a decisive step in terms of orders centralisation and decisively reduces our workload in order management. This benefits directly our clients, our stores and our commercial offer.”.
The new agreement is part of the retailer’s corporate project CALLAS.