Internationalization Strategy – Scalable infrastructures worldwide
In order to support customers with the internationalization of their business models and services, Arvato SCM Solutions relies on a systematic expansion of its global network of sites. At the same time, the goal of establishing a broader international setup is an important part of the company’s strategy to develop the growth prospects of selected industries and exploit their growth dynamics in certain markets. As a result[ of this approach], Arvato has already established numerous new sites or expanded existing ones.
In the strategically important U.S. market, for example, massive investments were made to expand the infrastructure. At the end of April 2017, a new logistics center with a surface area of approximately 60,000 square meters went into operation in the Louisville, Kentucky area. Further expansions are planned this year. The extensions are part of the overall strategy of steadily expanding the range of e-commerce and supply chain services for customers in the U.S.
Europe and USA are target markets
In Europe, too, Arvato has expanded its network of sites to prepare its infrastructure for growth, and create scalable solutions for new and existing client businesses. In France, for example, a 20,000 m2 distribution center for Europe's largest online fashion store was opened near Paris in March 2017.
As part of the logistical cluster Arvato operates in the Netherlands, the 41,000 m2 warehouse in Venlo was opened in 2017. A 30,000 m2 multi-user center in Gennep, Holland, had already been put into operation the previous year to accelerate growth in the core sectors of consumer products, high-tech & entertainment, and healthcare. The logistics center in Gennep, where extensive logistics and fulfillment tasks are provided for new and existing clients, was recently expanded by two more hall modules totaling 27,000 m2. By doing this, Arvato has responded to the wishes of customers who want not national, but regional or global solutions. For example, American companies in particular use the Netherlands as a western gateway to Europe; from here, they distribute their products throughout the EMEA region. So – like Poland, the largest logistics country in eastern Europe – Holland is an important cornerstone of the internationalization strategy. Both countries have seen average annual revenue growth of over 40 percent a year since 2015.
Qualified infrastructure for different industries
The foundations have been laid for a new hub for the Consumer Products business. A logistics facility with state-of-the-art e-commerce infrastructure is being built in Dorsten, North Rhine-Westphalia. The logistics premises at Arvato’s headquarters in Gütersloh are also being considerably expanded. Driven by high customer demand, two new halls are being constructed, one of which already went into operation in July. Approximately 16,000 m2 of warehouse and logistics space will be needed here for one major client in the high-tech and entertainment sector alone. Warehouse extensions are also already implemented or planned in Austria, Poland, Czech Republic, Turkey and China.
Storage capacities for the Healthcare sector were also significantly expanded – Arvato doubled its logistics space with the 10,000 m2 Arvato Healthcare logistics center in the Hambrug area (Germany). The state-of-the-art hall, which opened in fall 2016, delivers comprehensive and global distribution solutions for the med-tech industry. Sites in Calcinate, Italy, and Alcalá, Spain, have also been expanded or newly opened for the Healthcare business. So, the European Healthcare network was completed by new sites in the relevant markets.
Scalable infrastructures worldwide
Arvato has already taken a big step towards expanding its market position in the international focus markets by developing operational hubs and adding new international clients. New projects that contribute to the SCM strategy and advance the implementation of future-oriented business models, have been agreed with new and existing clients. The benefits are obvious: Arvato clients can avail themselves of a network that gives them quick access to new markets and supports their growth plans with scalable infrastructures. This ensures rapid availability, as well as a high degree of flexibility for responding to growth surges or changes in regional demand.
To be able to offer customers increasingly global services in future, Arvato will continue to expand its international presence. In doing so, it is striving for a global standard that guarantees a consistently high level of service quality across all activities – universally, for all sites and regions, and from a single source.