ECONOMYNEXT – Sri Lanka’s John Keells Holdings group is setting up a centralised distribution center to serve its own super market chain as well as other companies seeking to outsource parts of their supply chain management.
The group’s retail business together with its logistics arm has finalised the feasibility study and concept designs for a centralised distribution center, according to JKH’s latest annual report.
The group aims to leverage on the “cross functional relations within the group”, such as its logistics and retail businesses.
“The state-of-the-art distribution center will cater to both dry and fresh (for perishable goods) products in addition to chilled produce,” the report said.
The planned distribution centre will complement the retail business growth plans and further improve its productivity and product offering.
JKH said it plans to shortly commence construction of the new distribution centre, which is expected to be operational in the first half of 2019.
The distribution centre will be operated in a collaboration between the group’s logistics arm, John Keells Logistics Limited and Jay Kay Marketing Services, the operators of the Keells Super chain of supermarkets.
JKLL recorded a 42% increase in total throughput managed last year, the annual report revealed.
Growth was “driven by the growth in volumes handled for its existing customers and the rise in demand from domestic companies, increasingly seeking to outsource components of their supply chain,” it said.
(COLOMBO, June 02, 2017)