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Haier seeks supply chain edge

Third party logistic provider Kenco was chosen by Haier America to manage the appliance brand’s U.S. distribution.

The contract is a huge win for Kenco as Haier America is a division of Haier Group, the world largest appliance brand. Under the new agreement, Kenco will implement turnkey management of Haier’s three main U.S. distribution centers in Keasbey, N.J., Savannah, Ga., and Fontana, Calif. Haier distributes appliances and consumer electronics from each of these facilities and Kenco will provide real estate, management, staffing, warehouse management systems, and material handling equipment. Distribution center space managed will total more than a half million square feet once the agreement is fully implemented this year.

"We wanted a national (third party logistics provider) to operate our three facilities and any we might need to open in the next three to five years," said Larry S. Monaghan, SVP of administration with Haier America. "Our experience with Kenco has already been excellent, and their proposal proved to be the best match for our future needs as well."

Plans call for Kenco to provide a single system at all sites, with a consistent process across the network, and single point of contact for the Haier logistics network.

"Kenco is proud to have been selected by this market leader," said David Caines, president, Kenco Logistic Services. "We leveraged our years of experience in managing appliance supply chains to develop a common sense solution that will deliver uncommon value to Haier. Our national footprint, combined with Kenco’s reputation for operational excellence, made it possible for us to win this significant new business."

Haier employs more than 70,000 people around the world and distributes products in more than 165 countries and regions with global revenues reaching $23.3 billion in 2011.