Hermes Fulfilment has won MUJI as a new client. Hamburg based logistics services provider is to handle the storage, distribution and returns management of all items for sale in the online store of the German subsidiary of Japanese retailer MUJI. Hermes Fulfilment will also provide call centre and customer relationship management services.
MUJI’s German online store has some 3,000 products for sale. The range includes fashion items, home appliances, stationery and furniture. These items are stored at Hermes Fulfilment’s facility in Löhne/Germany on an area of 400 m². From here the goods are shipped to online shoppers in Germany and Austria. For big and bulky goods, such as furniture and mattresses, a 2 man delivery service is provided by Hermes Einrichtungs Service.
MUJI Deutschland has retail stores in Düsseldorf, Munich, Berlin, Cologne, Hamburg, Frankfurt and Hannover. MUJI is opening new stores all the time and intends to have increased the number of stores in Germany from seven to 20 by 2020. The original online store was set up at the beginning of 2009 by the company’s Düsseldorf downtown store. However, no furniture was sold online. In 2012 the decision was made to leave the operation of the online store to professionals and expand the online product range to include furniture. A crucial moment in the development of the business was when Hermes Fulfilment, a company of the Otto Group, was awarded the MUJI contract for its broad experience of the retail sector and profound knowledge within logistics processes. Furthermore, working in cooperation with its affiliated companies, Hermes Fulfilment’s solutions span the complete supply chain, enabling MUJI to concentrate all its resources on its core competence. The new sales channel will also raise awareness of MUJI among consumers in Germany.
In setting up this new partnership with MUJI, Hermes Fulfilment continues to expand its business with external clients. “We are poised to witness major growth over the next few years,” notes Dieter Urbanke, managing director of Hermes Fulfilment. This year the company expects to achieve approximately 15 percent of its turnover with external clients such as Wolford. According to Dieter Urbanke, the fact that an international retailer like MUJI has decided to enlist the help of Hermes Fulfilment to pursue its expansion strategy “underlines its confidence in our competence, expertise and network.” The particularly challenging thing for Hermes Fulfilment about its fulfilment solution for MUJI was that it was fully responsible for all interface conversion processes while the timetable for implementation was extremely tight. The online store can also easily be extended to serve other European countries.
Hermes Fulfilment and MUJI have also developed special instructions for the packaging of fragile items, such as glasses and bowls, to protect them during transportation and prevent damage.