Kuehne + Nagel has been awarded a two-year contract by automotive components supplier Tenneco to manage its warehousing in China through three distribution centres.

According to Kuehne + Nagel, the first phase of the partnership involved the opening of a warehouse in Taicang in the eastern province of Jiangsu, consolidating all previous operations from a distribution centre in Shanghai. The company will also open a warehouse in Guangzhou to serve southern China and another one in Beijing to serve northern China.

“Contract logistics in the automotive industry is a strategic focus area for Kuehne + Nagel in China,” said Pierre Li, senior vice president of contract logistics at Kuehne + Nagel North Asia. “This new partnership with Tenneco confirms our capability to provide tailored solutions for automotive customers with a focus on reducing costs and improving supply chain efficiency. We look forward to growing our partnership with Tenneco in the future.”

Tenneco chose Kuehne + Nagel for the strength of its information systems and experience in automotive logistics. The company will handle activities such as inventory control, warehousing, fulfilment, returns and customer service integration with an EDI-based solution.

“Kuehne + Nagel presented a warehousing solution which addressed our needs for improved efficiency coupled with strong customer service,” said Edward Hang, vice president and general manager of the China aftermarket at Tenneco. “We hope this collaboration will support our growth ambitions in China for many years to come.”