China focused retailer Aumake has entered a non-binding three year co-operation framework with Chinese State-Owned Enterprise Yangtze River New Silk Road International Logistics (Hubei) Group Co., Ltd to establish a China supply chain for Australian made goods and services.
Under the framework Yangtze River intends to purchase a minimum of $100 million worth of Australian goods from Aumake each year, according to an announcement.
At the beginning of each agreement year, both companies will formulate detailed procurement plans clearly specifying the types of goods, quantities, and delivery schedules envisaged.
Aumake’s Managing Director Joshua Zhou said: “Entering this agreement represents a significant milestone for the company.
“We continue to demonstrate our value as innovative and trusted partners in bridging China and Australia trade.
“Further opportunities in these key areas are progressing, which have the potential to broaden into more significant agreements over time.”
Under the strategic framework Aumake will utilise its sales channels in Australia to assist Yangtze River in developing a supply chain network for Australian products.
The procurement network will focus on Australian agricultural and livestock products, fast-moving consumer goods (FMCGs), frozen goods, and bulk resource commodities.
Through the co-operative framework, Aumake will also be able to integrate and leverage Yangtze River’s port, warehousing, logistics, and trade resources in Hubei, China into its existing supply chain network.
“To assist in forming the comprehensive supply chain network and fulfilling specific procurement orders from Yangtze River, Aumake will look to establish strategic alliances with domestic partners for specific Australian goods and services.
“To assist the individual strategic alliances partners, Aumake will look to integrate its newly launched digital marketing assistant Streamii into the operations of its partners to assist with cross-border sales management.
“Aumake has begun this process by leveraging on its established relationship with Petersons Wines and the successful establishment of a new company, Hunter Valley Wine and Tourism Alliance Pty Ltd.”
Picture: AuMake operates seven stores in NSW