VTech has chosen TDG to operate its continental European end-to-end supply chain.

The deal, worth 25 million euros (£19.7 million) covers the next three years and follows a year long supply chain re-engineering project with TDG.

TDG will be responsible for co-ordinating freight forwarding to Rotterdam from VTech’s manufacturing plants in Hong Kong and transfer from the port to its warehouse in the Netherlands.

Operational execution is based at TDG’s platform in Nijmegen and VTech’s platform in Weert, south of Eindhoven. From these locations TDG will distribute to the company’s Benelux, German, French and Spanish markets.

According to Gilles Sautier, European CEO of VTech, the company’s old route to market didn’t have the capacity to meet demand.

He said: “TDG’s re-engineering project increased our capacity and helped us realise how we could improve our delivery performance.”

TDG will also provide value added services such as customisation, re-configuration and re-packaging.