Internationalization creates Growth Prospect
Arvato Supply Chain Solutions supports companies with the internationalization of their business activities and the associated services. To provide the best possible availability of goods as well as scalable, transparent and efficient processes, the network of locations worldwide is being expanded all the time. As a specialized service provider in the fields of supply chain management and e-commerce, Arvato Supply Chain Solutions considers itself a partner of its customers, one that uses its network to provide them with fast access to new markets and supports and promotes their plans for growth with scalable infrastructures. This ensures not only rapid availability of warehouse capacities but also a high degree of flexibility to respond to growth spurts or changes in regional demand. The global network has now been expanded to more than 85 locations in more than 20 countries. At the same time, this local presence makes it easier to meet the legal and regulatory requirements of the countries involved.
The continuing growth in online retailing and the trend towards omnichannel solutions are having an impact on the supply chains of global companies. In addition to cross-channel solutions, speed is required above all, because end customers expect the delivery promises associated with the click of an order to be fulfilled at all times. Accordingly, demand is growing for a network of efficient logistics hubs with optimal connections to transport and distribution networks.
With new warehouses and the expansion of existing sites, we are continuously expanding our logistics areas - and also continuing to implement our automation strategy for the global network of locations. After all, today's e-commerce business requires complex fulfillment processes to handle ever smaller shipment sizes, high peak volumes and increasing delivery speeds. These are challenges that we meet for our customers with modern automation technology.
Furthermore, the international expansion makes it possible for us to develop prospects for growth in selected industries and utilize the momentum of growth in these industries in specific markets. ”
Accordingly, there has been increased investment in new distribution centers and further expansion of existing locations worldwide since 2017. Since customers are very interested in occupying optimal locations with regard to their production and sales networks, Arvato Supply Chain Solutions is represented internationally in all major logistics hotspots. As a fulfillment service provider, we can draw on know-how from numerous logistics solutions and concepts. These have already proven themselves in practice and can be transferred to other countries within a very short time. Based on this expertise, for example, three new locations in the USA and the Netherlands were planned and implemented within just one year for a globally active high-tech customer - including a new distribution center in the Louisville, Kentucky area, which acts as a centrally located key site for all activities in the United States. All three sites are equipped with the same standards, level of automation, logistics layout, processes and interfaces running in the same SAP setup. This has given us an important footprint in the U.S. market, opening up new business opportunities. In addition, the topic of multichannel is being driven forward massively at all three sites - a topic in which Arvato Supply Chain Solutions is a leader with its expertise.
Strategic expansion at home and abroad
In Europe, too, Arvato Supply Chain Solutions has already built up a comprehensive network and can offer its customers customized solutions at the key logistics hotspots at optimal cost structures. In recent years, we have selectively expanded our network at strategically located points in Poland, Turkey or Austria in order to be able to serve the entire European region quickly and efficiently. We are also currently building a state-of-the-art distribution center in Germany for a partner in the cosmetics industry.
The logistics cluster in the Netherlands has also been significantly strengthened. According to a study by the project developer Prologis, the country is one of the most sought-after logistics locations in Europe thanks to its regulatory systems and multimodality, and is ideally designed for pan-European distribution. In addition to a new warehouse in Venlo, we have expanded our logistics center in Gennep and equipped it with an AutoStore system in order to respond even better to growing e-commerce volumes and enable our customers to achieve further growth. The driving force behind the site expansion is the strong demand from international customers: overseas customers in particular use the site in North Limburg, with its good transport links, as a central warehouse from which to customize their products and distribute them in the European market.
In total, Arvato Supply Chain Solutions had around two million square meters of logistics space at 85 locations worldwide at the end of 2020. In 2021, a further 250,000 square meters of warehouse space in Germany, Turkey, Poland, Spain, the United Kingdom, Russia, China and the United States have been newly commissioned or initiated as core projects for future growth.
Network for international market access
Looking at Europe, Germany has become one of the most important global logistics locations due to its central location and exceptionally good infrastructure. Here, too, Arvato Supply Chain Solutions has invested and developed important new hotspots: for example, a new multi-user logistics center has been built in Dorsten in the northern Ruhr region that, thanks to a special infrastructure, is optimally tailored to current and future requirements of online retailing in the B2B and B2C sectors - after all, digitization is continuously changing consumers' shopping behavior as well as their expectations of assortment and service. Thanks to its convenient transport links, it is ideally suited for supplying the national and international markets and ensures rapid availability.
Arvato Supply Chain Solutions will continue to expand its international presence in the future. We are also looking to Asia and the USA, where new locations were established last year.
As a matter of principle, we attach great importance to implementing an overarching standard in our global network that guarantees consistently high service quality for all services from a single source - across all locations and regions.