GAC Samudera Logistics (GSL), a joint venture between the GAC group and Samudera Indonesia group, says Nestle Indonesia has renewed its contract with the JV, which will continue to manage the international food and beverage firm's warehousing and distribution needs in the southeast Asian nation.
As a result, GSL will manage Nestle's west Java, south Sumatra and west Kalimantan storage and inventory management requirements. A statement from GAC said this comes as Nestle has been witnessing substantial volume growth and increasing distribution complexities since the existing agreement started in June 2005.
Managing director Kaare Thuesen said this new long-term, exclusive contract is a boost to GSL's expanding logistics operations. The company recently invested US$4.4 million to expand its state-of-the art, multi-user distribution centre in Lippo Cikarang in the Bekasi district, east of Jakarta. The extended facility will cover 9,000 square metres with 12,000 pallet positions, increasing the current pallet capacity to 34,000.
"We are confident that our expanded facilities at the distribution centre in Lippo Cikarang, coupled with our proven warehouse management techniques and advanced IT capabilities, will enable us to enhance Nestle's supply chain and allow us to play an even bigger role in supporting their planned business growth," he said.
"The distribution centre (DC) is strategic to our business. It is one of the key enablers for Nestle Indonesia to provide the best service. Most of our fast-growing modern channel customers are served from this DC."
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