German independent music distributor and vinyl specialist Cargo Records has extended its logistics contract with replicator kdg for a further two years.

Cargo Records moved its entire warehouse stock in North Germany to the kdg logistics centre in Stanzach two years ago, and handed over all deliveries of daily orders from the 800-plus customers it serves – from individual retailers and chains of stores to the online major Amazon - to kdg.

Under the terms of the deal, kdg has not only taken on warehousing and delivery operations for Cargo, but also handled the returns side of business.

"Logistics is a growth business," kdg director Michael Hosp explained. "More and more companies are outsourcing their logistic operations in order to focus more on their core business of product development and marketing. Although demands and expectations are high, customers tend to be far more loyal and interested in longer, more sustainable business relationships if the logistics aspect worked out without a itch.

Although kdg only moved into a new 850 m2 large warehouse in Stanzach this January, a further one is due to be added in just a few months’ time.

Story filed 13.08.07