Senheng New Retail Bhd, through its wholly owned subsidiary Senheng Electric (KL) Sdn Bhd, aims to boost it’s supply chain by acquiring its currently leased Central Distribution Centre (CDC) for RM75.8 million.

Senheng Electric (KL) Sdn Bhd has entered into a sale and purchase agreement with SDM Assets III Sdn Bhd (SDM), a wholly owned subsidiary of Sime Darby Property MIT Development Sdn Bhd to secure ownership of the CDC.

The CDC is purpose built by SDM and has been tenanted by Senheng since 2020 and with the acquisition a significant annual gross rental savings of RM4.2 million will be made by the group every year.

The CDC is integral to the group’s supply chain management and helps optimize logistics and enhances customer experience from its location in Klang, Selangor acting as the main distribution hub for Senheng.

At the CDC, products from suppliers are received, stored, and subsequently distributed to regional hubs and since 2018 Senheng has adopted this central logistics model for all customers in the Central region of Peninsular Malaysia.

This helps minimise store disruptions through once daily deliveries, ensuring nationwide stock availability and reducing logistics costs across the value chain as suppliers share the logistics costs which ultimately benefits customers.

-THE MALAYSIA VOICE