German ecommerce giant Otto has announced that it’s outsourcing a part of its own logistics. The Group is constructing a shipping center in Poland. From the brand new location, orders shall be picked and shipped to German customers.
The German Otto Group recently announced that its revenue dropped 9 percent in 2023, reaching 10.8 billion euros in total. At the identical time, online department store Otto expanded the quantity of marketplace partners by 33 percent, to greater than 6,500. The corporate also announced that it was opening up the marketplace to European sellers.
Investment of 150 million euros
To drive further ecommerce growth, the corporate has invested in its logistics operations. The corporate invested over 150 million euros recently, in the development of a 16,300 square meter automated shuttle warehouse in Germany. It is anticipated to be operating this summer. The corporate desires to process orders in a few hours and offer same-day delivery with this warehouse.
‘Otto Group is launching an automatic shuttle warehouse this summer.’
Otto’s logistics are handled by the Hermes Achievement Group, which is Otto Group’s own logistics arm. It already has several locations inside Germany, in addition to locations in Switzerland, Italy, the Czech Republic and Poland.
Recent shipping center in Poland
The Hermes Achievement Group is now adding a brand new shipping center in Poland. It’s the primary time that the Group is constructing a very recent location outside of Germany. The achievement center shall be 118,000 square meters in total and can start operations in the autumn of this 12 months. From there, as much as 1,900 employees will store, pick and ship Otto goods to German customers.
‘Poland may be very central for a European company like ours.’
In line with the corporate, a robust European location network with a concentrate on Germany is the idea for an optimal position for online trading in the long run. “Poland may be very central for a European company like ours. Above all, we’ll have the opportunity to deliver from Iłowa to large parts of Germany the day after the order is placed. Politics and administration supported us thoroughly within the implementation. At the identical time, we’re expanding our warehouse logistics at German locations”, said Michael Otto, Chairman of Otto Group’s supervisory board and former CEO.
