arvato Supply Chain Solutions Expands International Network

Arvato Supply Chain Solutions is continuing on its growth path. The booming online business remains a strong revenue driver, from which the supply chain and e-commerce specialist, focused on end-customer-oriented industries, is benefiting significantly. At the same time, the global network of locations is also growing to accommodate the increasing volume of existing and new customers.

(Gütersloh) The supply chain management and e-commerce service provider benefits from the broad positioning of its businesses, which can better compensate for risks through diversification into various industrial sectors. In addition to focusing on fundamentally growth-oriented industries with strong end-customer centricity, growth has also been favored by the significant increase in online order volumes from customers in the consumer goods industry and retail due to the pandemic. In this area, which includes segments such as fashion, lifestyle, beauty, and high-tech, peak volumes were already exceeded in the first half of the year that would typically only occur during the well-known seasonal peaks.

Additionally, the healthcare business in 2020 was again one of the growth drivers, with high demand for solutions for specialty pharma products as well as European integrated pharmaceutical distribution networks. “The year 2020 demonstrated that our global network is exceptionally resilient. We have expanded by opening new locations and expanding existing distribution centers by more than 150,000 square meters of logistics space, thereby creating the best conditions for further growth,” emphasizes Frank Schirrmeister. “This is a strategic priority for us to support our customers in their growth in their target markets with scalable infrastructures and high flexibility, enabling them quick access to new international markets—regardless of any eventualities.”

Two Million Square Meters of Logistics Space

Last year, for example, new warehouse spaces were created in Germany at the fashion locations in Dortmund and Dorsten. Furthermore, additional hall modules for the new customer Harman, a leading audio technology company, were constructed and put into operation at the Gennep location in the Netherlands, and a completely new distribution center was opened in Louisville, Kentucky, USA. New buildings and expansions were also added in Poland, Spain, Turkey, as well as in China and Russia. Overall, Arvato Supply Chain Solutions now has around two million square meters of logistics space at 60 locations worldwide. In 2021, investments will not only continue to be targeted at expanding the network but also in automation and digitization. Currently, several projects with a total of more than 250,000 square meters of logistics space are underway. The largest is a 55,500 square meter distribution center in Turkey, which commenced 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.

Logistics Center for Douglas in Hamm

The largest project in Germany is the new 38,000 square meter logistics center for Douglas in Hamm. Arvato will start shipping the first orders from Douglas’s online shops from the omnichannel distribution center starting August 2022. “This is a flagship project for us, into which we are investing around 60 million euros—our largest investment to date in technical infrastructure,” says Frank Schirrmeister, referring to the significant importance that the use of state-of-the-art automation technology has for Arvato. “It is an important step towards the digital transformation of our logistics processes and also takes into account the increasing digitalization strategies of our customers. Considering the total current investments in our network, we are getting 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.”

Photo: © arvato