Universal Music outsources UK distribution to arvato

Universal Music UK has outsourced its distribution operation to arvato, in a move designed to tap into the expertise, scale and specialist resources of one of Europe’s largest entertainment logistics and fulfillment businesses - and now definitively the UK’s largest.

arvato takes over Universal Music UK’s award-winning 16,500 sq m distribution operation at Milton Keynes from 1 May 2008. The site’s distribution employees, including the management team, have transferred their employment from Universal Music UK to arvato.

arvato is an independent and active player in the third-party logistics market in the UK and globally. arvato UK’s logistics focus is to provide one-stop supply chain solutions to the entertainment, hi-tech and healthcare industries.

Over the next five years, the period for which Universal Music UK has granted exclusive distribution rights, arvato will focus on further growing volumes at Milton Keynes - which earlier this month was named Distributor of the Year at the Music Week Awards - as well as its operation in Oldbury, West Midlands.

Matthias Mierisch, Chairman & CEO of arvato services UK/Ireland, said: “Milton Keynes is a highly successful operation - now, by working closely with the management team, we will be further enhancing services from the site.

“We are now in an extremely strong position as the UK’s largest entertainment distribution and fulfillment business.

“This move allows us to focus on strengthening services for large media businesses as well as continuing to grow our logistics services in wider areas including hi-tech and healthcare sectors.”

David Bryant, chief financial officer of Universal Music UK, said: “arvato has an extremely strong track record in distribution and fulfillment as well as a deep understanding of our industry. Over the coming years, arvato will further develop what has become one of the UK’s most important distribution hubs for the entertainment industry.

“As this industry evolves to serve its consumers through a variety of delivery systems, this agreement with arvato aligns with Universal Music’s core strategy of developing and promoting our artists and their music.”

Read the full article on Music Week and on Billboard.