Hermes has won a wide-ranging logistics services contract for the German online business ofJapanese retailer MUJI which is expanding in the country.
Hermes Fulfilment, the group’s logistics unit, is to handle the storage, distribution andreturns management of all items for sale in MUJI’s German online store along with call centre andcustomer relationship management services.
MUJI’s German online store has some 3,000 products for sale, including fashion items, homeappliances, stationery and furniture. These items are stored in a 400 sqm section of HermesFulfilment’s facility in Löhne, mid-way between Osnabrück and Hanover in northern Germany. Fromhere the goods are shipped to online shoppers in Germany and Austria. For big and bulky goods, suchas furniture and mattresses, a 2-man delivery service is provided by Hermes Einrichtungs Service.
MUJI Germany has retail stores in Düsseldorf, Munich, Berlin, Cologne, Hamburg, Frankfurt andHannover and aims to expand these seven locations to 20 by 2020.
The company’s original online store was set up at the beginning of 2009 by the company’sDüsseldorf store but no furniture was sold online. In 2012 the decision was made to leave theoperation of the online store to professionals and expand the online product range to includefurniture, Hermes explained.
A crucial moment came when Hermes Fulfilment was awarded the MUJI contract due to its broadexperience of the retail sector and profound knowledge within logistics processes. Furthermore,working in cooperation with its affiliated companies, Hermes Fulfilment’s solutions span thecomplete supply chain, enabling MUJI to concentrate all its resources on its core competence.
The particularly challenging thing for Hermes Fulfilment about its fulfilment solution forMUJI was that it was fully responsible for all interface conversion processes while the timetablefor implementation was extremely tight. Hermes Fulfilment and MUJI have also developed specialinstructions for the packaging of fragile items, such as glasses and bowls, to protect them duringtransportation and prevent damage.
The new sales channel will also raise awareness of MUJI among consumers in Germany while theonline store can also easily be extended to serve other European countries.
In setting up this new partnership with MUJI, Hermes Fulfilment continues to expand itsbusiness with external clients. “We are poised to witness major growth over the next few years,”said Dieter Urbanke, managing director of Hermes Fulfilment. This year the company expects toachieve approximately 15 percent of its turnover with external clients such as Wolford.
According to Urbanke, the fact that an international retailer like MUJI has decided to enlistthe help of Hermes Fulfilment to pursue its expansion strategy “underlines its confidence in ourcompetence, expertise and network.”
