The two Metro Group companies Metro Cash & Carry and Real invest in a new and fundamentally more modern and efficient logistical infrastructure. The trade company from Düsseldorf invests over ten million Euro in the German logistics network. Four modern logistics centers, a centralized flow of the products and adjustments at the existing locations clearly should improve the availability, product quality and freshness for the METRO GROUP companies. Another goal of the new structure is to strategically strengthen the business with the supply chain. The reorganization should create three, instead of seven, larger and modern logistics centers with increased facilities so that a significantly larger volume of goods can be handled. Many of the affected employees will be offered another position at the new locations. The new logistics system should offer about the same amount of jobs as the previous system. The steps that have to be taken to implement these changes are discussed in the relevant committees.
With the reorganization of the logistics networks of the METRO GROUP will meet the future requirements of business and logistics strategies of METRO Cash & Carry and Real even better. The company plans the integration of three new logic centers and the expansion from the beginning of 2017 until half way through 2018. Moreover the existing sites will be adapted with regards to division of tasks, floor space and range. “In the successful reorganization of METRO Cash & Carry and Real in Germany the competitive logistics play a large role. Therefore we decided to seriously invest in the optimization and modernization of our logistics,” says Mark Frese, CFO of METRO. “It is our aim to create the most modern logistics network in Germany. In future logistics will be much stronger in focus of the new strategic business areas of METRO Cash & Carry and Real, which depend to a great extent on an optimal supply chain management. This includes, for example, the delivery services, smaller formats for city center or multichannel solutions."
The current warehouse network METRO LOGISTICS is often outdated with regard to the location and the infrastructure of the sites; this causes an insufficient and not future-oriented logistics infrastructure. The three new logistics centers will be placed in optimal locations. Which makes it possible to optimize the transport routes for supplying the markets as much as possible. After the analyses and calculations the METRO GROUP, the position will be in the areas around Velbert, Witten and Worms. The already existing warehouse in Hamm will be expanded. The three new logistics centers will individually be larger as the current locations and handle larger volumes. At the three new locations and the current location in Hamm 1300 jobs will be created. This equals the amount of lost jobs on the other locations. “The optimal geographic positioning makes is possible to centralize the flow of the products to the sales points in future,” explains Jeroen Janssen Lok, Group Director Strategy Logistics Germany of METRO. “The coordination of the direct deliveries from the new locations will have a positive impact on the sales points as it increases the availability and freshness of the products.”
The seven warehouse locations in Unna, Kamen, Essen, Frechen, Bingen, Gimbsheim and Gernsheim will be gradually replaced by the new locations from mid-2017 to mid-2018. The reorganization affects a total of 1,420 employees. Attempts are made, when possible, to offer the staff new positions at the new locations. For employees who aren’t offered a new job or if it isn’t reasonable because of the distance, appropriate social plans are being negotiated. In future parts of the range currently processed in Reichenbach, Altlandsberg and Bremen will also be handled at the new locations. The optimization of the network and the transfer of the logistic services to the new centers will have a clear positive influence on the transport movements and the efficiency of the process. The reorganization should save the METRO GROUP several tens of millions of Euro on a yearly basis. METRO LOGISTICS will continue to be the logistics partner of the METRO GROUP sales divisions.
Source: www.metrogroup.de