Internationalization enhances growth
A strong network for optimal growth
Arvato SCM 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 SCM 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 70 locations in 20 countries. At the same time, this local presence makes it easier to meet the legal and regulatory requirements of the countries involved. “Furthermore, the international expansion makes it possible for us to develop prospects for growth in select industries and utilize the momentum of growth in these industries in specific markets,” says Frank Schirrmeister, CEO at Arvato SCM Solutions. Accordingly, there was increased investment in new distribution centers worldwide in 2017, and existing locations were expanded further.
Since customers have a keen interest in the best possible positioning with regard to their production and distribution networks, Arvato SCM Solutions is represented at all the major logistics hot spots internationally. As a provider of fulfillment services, we can rely on know-how derived from a large number of logistics solutions and practices, which have already proved effective in practice and can be transferred to other countries very quickly. In 2017, this expertise was used to plan and realize three new locations in the United States and the Netherlands within a single year for a globally active high-tech customer (learn more) — including a new distribution center in the Louisville area (Kentucky), which serves as a key, centrally located site for all activities in the United States. All three locations use the same standards, degree of automation, logistics layout, processes and interfaces, and all run with the same SAP framework. This provides us with an important footprint in the US market that conveys a positive impression and opens up new business opportunities. Moreover, there is a huge push behind multichannel marketing at all three locations — an area in which Arvato SCM Solutions plays a leading role with its existing expertise.
Strategic expansion in Germany and abroad
In Europe, too, Arvato SCM Solutions has built up a comprehensive network with the ability to offer its customers tailored solutions with ideal cost structures at the important logistics hot spots. In addition to a new French location near Paris, a new logistics center was started up at the Industrial Campus Vienna East in 2017. The site serves as a hub for after-sales logistics and is strategically well situated in the immediate vicinity of the Austrian capital. The Vienna location also offers additional potential for expansion considering the short transport routes to the neighboring countries of Hungary and Slovakia and the easy accessibility of other southern European countries. Furthermore, at the end of last year, Arvato SCM Solutions opened a new distribution center in the Polish town of Stryków for the online business of a Polish clothing company. In 2018, more distribution centers will be opened in Turkey and Poland.
The logistics cluster in the Netherlands has also undergone considerable improvement. According to a recent study by project developer Prologis, the administrative systems in the Netherlands and its multimodal infrastructure make it one of the most sought-after logistics locations in Europe and ideal for Europe-wide distribution. In addition to a new warehouse in Venlo, Arvato SCM Solutions has added two building modules to its logistics center in Gennep. The expansion of these locations is being driven by the strong demand of international clients. International customers, in particular, use the location in North Limburg with its good transport connections as their central warehouse, individualizing their products and distributing them in the European market from there.
Network for international market access
With regard to Europe, Germany has become one of the most important global logistics locations because of its central location and the exceptionally good infrastructure. Here, too, Arvato SCM Solutions has made investments and developed important new hot spots. In the northern Ruhr district town of Dorsten, for example, the company set up a new multi-user logistics center with special infrastructure that makes it perfectly suited to the current and future requirements of online commerce in the B2B and B2C fields. After all, digitization is continually changing the purchasing behavior of consumers along with their expectations of product ranges and service. Conveniently located with respect to transportation links, the center is ideal for supplying to national and international markets and ensures rapid availability.
Arvato SCM Solutions will steadily expand its international presence in the future too. As it does so, the company expects to realize a standard in its global network that guarantees consistently high quality in all the services provided — across all locations and regions.
"We are represented in every hotspot"
If companies want to expand their business into international markets, they need optimal locations for the distribution of their goods. What criteria are important and how Arvato SCM Solutions supports its customers in entering new markets with its expertise in network and site design explains Bernhard Lembeck, Vice President Logistics Engineering.