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Pepsico Awards Logistics Contract to Kuehne + Nagel in Poland

PepsiCo is entrusting Kuehne + Nagel with warehousing and distribution activities in Poland. The agreement covers operations in five warehouse locations.

PepsiCo decided to outsource its warehousing and distribution activities in Poland to a partner in order to improve customer service by responding faster to changing market demands, to reduce supply chain costs and to minimise the environmental impact of its transportation operations.

Kuehne + Nagel presented a solution which exploits synergies by combining the cargo flows of two business locations to secure a faster and environmentally friendly supply chain. The logistics company will be responsible for the inbound transport from Polish manufacturing sites and for the management of five Regional Distribution Centres (RDC).

The Regional Distribution Centres are located in Katowice, Poznan, Wroclaw, Gdansk and Bydgoszcz. In total, they comprise of a surface of approximately 20,000 m2. From the RDC’s, Kuehne + Nagel will deliver the goods to a network of about 40 local cross-dock platforms which are also managed by Kuehne + Nagel. The first RDC went into operation in June with the others following subsequently in the coming months.

PepsiCo chose Kuehne + Nagel due to their clear commitment to operational excellence, the support and engagement of their senior stakeholders throughout the outsourcing process, and the strong cultural fit between the two organisations.