Sony Music UK has selected arvato as its e-commerce distribution partner in the UK and Ireland.
The three year deal includes warehousing and direct to consumer distribution for hundreds of thousands of orders. The contract, which includes handling returns, will be managed from arvato’s 16,500 sq m distribution centre at Milton Keynes.
arvato will handle music and merchandise from Sony’s MyPlay Direct artist stores including One Direction, Westlife and Kasabian.
The deal expands arvato’s existing six year supply chain and commercial order to cash service relationship with Sony.
“arvato has the necessary expertise and flexibility to adapt to our evolving needs in market undergoing significant change. This is especially important when it comes to delivering premium products directly to consumers, who expect a premium service,” said Stuart Hale-Brown, vice president operations, Sony Music UK.
“The dedication from the team has really helped us in the transition of the e-commerce business. We look forward to working with arvato and incorporating its innovative solutions to drive our business forward.”
“Our existing relationship with Sony means we can leverage the B2B stockholding, providing higher stock availability, a shorter turnaround time of e-commerce orders and reduced replenishment costs,” said Markus Schmücker, managing director, supply chain solutions, arvato UK & Ireland.
Arvato is part of the giant Bertelsmann group and has annual sales of some 5 billion euros.