May 28, 2020 Press reports

Arvato Expands Further in Russia

Gütersloh/Yaroslavl – With a new logistics center in Frunse, Yaroslavl 250 km northeast of Moscow, Arvato Supply Chain Solutions is further expanding its operational network of sites in Russia. A few months prior to this expansion, a distribution center in Noginsk in the greater Moscow area had already been put into operation. Arvato has now a total of seven locations in Russia with approximately 1,400 employees.

"The logistics center in Frunse, which expanded our warehouse capacity by around 15,600 square meters, is intended to accommodate the growing e-commerce business of one of our major customers in the consumer products sector," says Nataliya Przystaw, Managing Director of Arvato Supply Chain Solutions in Russia. To achieve this, the existing building, which is conveniently located near the M8 motorway linking Yaroslavl with Moscow, was converted to modern standards.

Buffer storage is to take place in narrow aisle pallet racks. For future development, there is a possibility to expand the existing storage with additional square on which the four-level picking tower and a two-level mezzanine will be installed as production zones. The warehouse functions as an e-commerce warehouse. As in Yaroslavl, the headquarters and largest location of Arvato Supply Chain Solutions in Russia, the complete range of services are also available in Frunse, including warehouse operation, inventory management, picking and packing, order processing, distribution and returns management as well as solutions in the areas of payment and loyalty programs.

In record time, Arvato Supply Chain Solutions had already commissioned a 3,200 square meter distribution center in Noginsk near Moscow for a long-standing customer at the end of December 2019. Nataliya Przystaw: "The preparations for this took only 1.5 months." The warehouse, which is equipped with racks for storing around 3,660 pallets, also meets all the requirements for the e-commerce business. "The new sites are also part of our strategy to support customers in internationalizing their business activities in growth markets," emphasizes Nataliya Przystaw. "Both logistics centers therefore have expansion areas and can be expanded if necessary".

The growth of the Russian e-commerce market in particular requires new logistics capacities – according to the latest Global Consumer Survey by Statista, its turnover is expected to increase from today's 18.1 billion euros to a market volume of 22.6 billion euros by 2024. "It is the economic segment that is growing year after year with significant growth rates," confirms Nataliya Przystaw. "But even beyond that, Russia is one of the most rapidly developing markets, where innovations are introduced much faster and earlier than elsewhere.”

Arvato Supply Chain Solutions has been present in Russia since 1997 and has consequently an extensive local market knowledge. The company is currently seeing a clear trend toward digitization, which will continue in the coming years. "In fulfillment and logistics, we see the growing use of Big Data, an increase in robotics for warehouse activities, the automation of processes, the use of artificial intelligence, and even the use of drones for delivery," says Nataliya Przystaw. "The market is developing at an enormous speed, customer requirements are increasing, competition among fulfillment providers is growing, and there are completely new players with very high investments". To remain successful and competitive in this environment in the future, Arvato Supply Chain Solutions is driving forward the automation of its Russian locations as part of a comprehensive digitization strategy. Nataliya Przystaw: "Our goal is to implement more digital technologies in order to offer new products and innovative services to our clients".

Arvato Supply Chain Solutions is also experiencing rapid growth in Poland. Since 2015, the company has opened a new site there every year for a range of clients, such as the largest Polish fashion company LPP. As the most recent logistics site to open, a new warehouse in Komorniki near Poznań went into operation in March, where international returns for e-commerce customers are handled. Arvato Supply Chain Solutions in Poland now has a total of eleven logistics centers in the regions of Poznań, Warsaw and Łódź, where it manages around 275,000 square meters of warehouse space with approximately 2,200 employees.

Another growth market is Turkey. Arvato Supply Chain Solutions has been represented there since 2014 and, among other things, has successfully expanded its services for e-commerce customers in recent years. To this end, new warehouses were put into operation, the most recent of which opened in 2019 in Gebze in the province of Kocaeli, on the outskirts of Istanbul. Arvato employs 500 people in the 24,000 square meter logistics center with a storage capacity of 4 million items at the new warehouse.

 

About Arvato Supply Chain Solutions:

Arvato Supply Chain Solutions is an innovative and international leading service provider in the field of supply chain management and e-commerce. Partners come together with industry specialists in the fields of Telecommunication, Hightech, Entertainment, Corporate Information Management, Healthcare, Consumer Products and Publisher. About 15,000 employees work together to provide practical and relevant solutions and services worldwide. Using the latest digital technology, Arvato develops, operates and optimizes complex global supply chains and e-commerce platforms, as the strategic growth partner for its customers. Arvato combines the know-how of its employees with the right technology and appropriate business processes to measurably increase the productivity and performance of its partners.

For more information, please visit www.arvato-supply-chain.com.

Arvato Supply Chain Solutions is part of Arvato, a leading international service provider. More than 70,000 employees in almost 40 countries develop and implement innovative solutions for business customers all over the world. These include SCM and IT solutions as well as financial and customer communication services, which are continuously developed with a focus on innovations in automation and data/analytics.

Globally renowned companies from a wide variety of industries – from telecommunications providers and energy providers to banks and insurance companies, e-commerce, IT and Internet providers – rely on Arvato’s portfolio of solutions.

Arvato is a division of Bertelsmann.

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