Monday, July 9, 2012

Global Logistics and Freight Groups Expand Supply Chain Operations

Developments in Hungary and Thailand for Agility and Kerry
Shipping News Feature

HUNGARY – THAILAND – Two of the worlds’ most notable freight and supply chain support groups have announced new expanded facilities this week. Agility, the Kuwaiti born operator has opened its fourth branch in Sarvar, Hungary whilst Asian headquartered Kerry Logistics plans to open a new plant in Thailand. Agility’s new production site was specifically designed to support its customer Lenovo’s assembly lines (operated by Flextronics) and fulfil its print-on-demand requirements. Lenovo, owners of the former IBM Personal Computing Division, claims to be the fastest growing computer supply group in the world.

Agility has introduced the latest high-end laser printing technology in an attempt to consolidate its position as a leader in keyboard printing whilst increasing market share. Currently the company delivers 600,000 keyboards annually to Lenovo on behalf of Lite On and is planning to increase the number of shifts to reach a capacity of 1 million units per year. Gabor Kovacs, Agility’s Country Manager, Hungary, said:

“Keyboard printing has always been Agility’s strategic activity in Hungary. Opening this new branch emphasizes Agility’s flexibility and commitment to our customer. In an effort to help grow Lenovo’s business, it was important for us to locate our operation in close proximity to the local manufacturing site.”

For its part Kerry Logistics says it intends to use 35,000 of the 55,000 square metre site it has purchased in Rayong Province, Thailand for the construction of a logistics centre for the automotive sector. Located 35 kms from the Laem Chabang Seaport, the Eastern Seaboard Industrial Estate (ESIE) is focused on car manufacturing with a cluster of more than 500 automotive factories with global brands such as General Motors, Ford, Mazda and Suzuki having already established assembly operations in the zone.

The new facility is scheduled for completion in the second quarter of 2013 and intends to offer flexible solutions to large and small customers both on-site and off-site. Other services include a covered storage area, inventory control, processing and packaging, as well as specialised services such as automotive pre-assembly, sub-assembly, sequencing, and 'Just in Time' (JIT) delivery. Kerry Logistics will also provide quality control and inspection for vehicles on arrival, batch and sequence parts for delivery to customers’ own facilities or send directly to end-users.

Through its global network, Kerry Logistics will be able to offer one-stop services including collection of components from manufacturers in their respective country of origin, consolidation, shipping and forwarding, customs clearance, container handling and receipt on arrival in Thailand. The value of logistics services in the automotive zone in 2011 was valued at US$66 million and is expected to increase by more than 25% by 2015.