Marketing

Expansion of the locations due to the e-commerce boom – eCommerce Magazin

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In order to be able to map the increasing volume of existing and new customers, the service provider, which is focused on end-customer-oriented industries, has expanded the global network of locations by more than 150,000 square meters of logistics space. “In Poland, Turkey and Great Britain we grew by more than 50 percent. In the Netherlands, Asia and the USA by 30 percent. In addition, we were able to record organic growth of more than 18 percent in the first half of this year, ”explains Frank Schirrmeister, CEO of Arvato Supply Chain Solutions.

Strong growth in online orders in the consumer goods industry

The supply chain management and e-commerce service provider benefits from the broad range of its stores. By diversifying into different industrial sectors, they can better compensate for risks. In addition to the focus on generally high-growth industries with a strong end-customer focus, growth was also favored by the corona-related, strong increase in online order quantities from customers in the consumer goods industry and retail.

In this area, which includes segments such as fashion, lifestyle, beauty or high-tech, the peak volumes that otherwise only occur at the well-known seasonal highlights were exceeded in the first half of the year. In addition, the healthcare business was once again one of the growth drivers in 2020, with great demand for solutions for specialty pharmaceutical products and European integrated pharmaceutical distribution networks.

Arvato Supply Chain Solutions opens new locations

“The year 2020 has shown that our global network is extremely resilient. We have expanded by more than 150,000 square meters of logistics space by opening new locations and expanding existing distribution centers. We have thus created the best conditions for further growth, ”emphasizes Frank Schirrmeister. “This is a strategic priority for us in order to support our customers with scalable infrastructures and high flexibility in their growth in their focus markets. And to give them quick access to new international markets – regardless of all eventualities. ”

Last year, for example, new warehouse space was created at the fashion locations in Dortmund and Dorsten in Germany. In addition, the service provider in the Netherlands has put additional hall modules into operation at the Gennep site for its new customer Harman, an audio technology company. In addition, Arvato has opened a completely new distribution center in Louisville, Kentucky, in the USA. There were also new buildings and expansions in Poland, Spain, Turkey, China and Russia. In total, Arvato Supply ChainSolutions now has around two million square meters of logistics space at 60 locations worldwide.

Arvato Supply Chain Solutions
The Gennep location in the Netherlands was expanded for new customer business. (Image: Arvato Supply Chain Solutions)

Investments in network expansion and digitization

In 2021, Arvato Supply Chain Solutions is not only investing further in network expansion, but also in automation and digitization. Several projects with a total of more than 250,000 square meters of logistics space are currently being implemented. The largest is a 55,500 square meter distribution center in Turkey, which started operations in April 2021. From Istanbul, fashion and textile products are shipped for a large Turkish e-commerce company that operates the largest e-commerce platform in Turkey. The largest project in Germany is the new 38,000 square meter logistics center for Douglas in Hamm. Arvato will send the first orders from Douglas’ online shops from the omnichannel distribution center from August 2022.

Arvato Supply Chain Solutions
Frank Schirrmeister is CEO of Arvato Supply Chain Solutions. (Image: Arvato)

“For us, this is a lighthouse project in which we are investing around 60 million euros – our largest investment to date in technical infrastructure,” reports Frank Schirrmeister, pointing to the great importance that the use of the latest automation technology has for Arvato. “It is an important step towards the digital transformation of our logistics processes and at the same time also takes into account the increasing digitalization strategies of our customers. If you look at all of the current investments in our network, we come a good deal closer to our vision of being the internationally operating supply chain management company with the greatest customer orientation and the strongest focus on data and IT. ”

Arvato Supply Chain Solutions: Operator of supply chains and e-commerce platforms

Arvato Supply Chain Solutions is one of the leading service provider in the field of supply chain management and e-commerce. This covers the areas of telecommunications, tech, corporate information management, healthcare, consumer products and publishers. With the help of digital technologies, Arvato SCS develops, operates and optimizes complex global supply chains and e-commerce platforms. This makes the service provider a strategic partner for its customers. Arvato Supply Chain Solutions is part of Arvato Systems, an international service company. The portfolio includes SCM and IT solutions as well as financial and customer communication services with a focus on automation and data / analytics

Also read: Logistics service provider expands: major supply chain order from Perfumery Douglas

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