GAC Samudera Logistics (GSL), a joint venture between UAE-based GAC and Samudera Indonesia Group, has announced its contract renewal with Nestlé Indonesia to manage the international food and beverage company's warehousing and distribution needs in the country.
Nestle has a long-standing relationship with GAC, going back to over a decade ago in the Middle East when GAC built the first third party logistics facility in the Gulf, now a fully-fledged GAC Logistics Park - from which GAC is still handling Nestle's regional supply chain requirements today.
Under the continuing arrangement, GSL will manage Nestlé's West Java, South Sumatra and West Kalimantan storage and inventory management requirements. As Nestlé has witnessed substantial volume growth and increasing distribution complexities since the existing agreement started in June 2005, GSL is now preparing for a more extensive scope of work for the global brand.
GSL Managing Director Kaare Thuesen says this new long-term exclusive contract is a boost to GSL's expanding logistics operations. The company recently invested USD4.4 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 occupy a total of 9,000 square metres and offer an additional 12,000 pallet positions, increasing the current pallet capacity to 34,000.
He adds: '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 Nestlé's supply chain and allow us to play an even bigger role in supporting their planned business growth.'
Nestlé Indonesia's Supply Chain Director, Wisman Djaja says: 'The Distribution Centre is strategic to our business. It is one of the key enablers for Nestlé Indonesia in its endeavour to provide the best service to its valuable customers. Most of our fast-growing modern channel customers are served from this DC. I am happy to see that GSL has been investing in training and development to grow talent, an important complementary to its excellent infrastructure. After all, talented employees set a company apart from its peers.'
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