Otto GmbH & Co. KG

07/04/2024 | Press release | Distributed by Public on 07/04/2024 06:17

Flagship Project in European E Commerce: Otto Group Opens State of the Art Shuttle Warehouse in Altenkunstadt

Approximately two years after the groundbreaking ceremony, the Otto Group celebrated the opening of its new shuttle warehouse in Altenkunstadt today. The international retail and services group invested around 150 million euros in the expansion and technological modernization of the location. The fully automated new building extends the existing fulfillment center, making Altenkunstadt one of the most modern and largest logistics locations in Europe. This strengthens the Otto Group's logistical capabilities, sets new standards for online retail, and simultaneously boosts the economic development of the Upper Franconia region.

More than a hundred invited guests and employees were on-site today as Kay Schiebur, Group Executive Board Member Services at the Otto Group, and Kamil Christoph Kasprowicz, CEO of Baur Hermes Fulfilment, together with Bavarian Secretary of State Martin Schöffel, officially opened the newly built shuttle warehouse on the Altenkunstadt campus. The recently constructed warehouse covers an area of about 16,000 square meters and can accommodate up to six million items. With its commissioning, the productivity of the site will be increased, throughput times significantly shortened, and thus the service for online customers greatly improved. In the future, an average of four hours will elapse between order transmission and the handover of the ordered goods to the shipping service provider. This is made possible by automated picking, which brings the ordered goods directly to the employees, thereby avoiding long travel times.

"With the new shuttle warehouse in Altenkunstadt, we are setting a strong signal for the future of logistics. We are well-equipped to deliver to our customers promptly even during peak order periods, such as Black Friday or Christmas," explains Kay Schiebur, Group Executive Board Member Services at the Otto Group. "We rely on a strong interplay between people and technology to meet the growing demands of online retail and continuously improve our service. Thus, the site has become a flagship project in European e-commerce and within the Otto Group."

In recent years, the Otto Group has continuously invested in the digitization and automation of its logistics processes. This includes the use of AI-controlled robots as well as the expansion and modernization of existing locations.

The traditional logistics site is operated by Baur Hermes Fulfilment, a joint venture of the BAUR Group and Hermes Fulfilment founded in 2022. A project team from the group companies Baur Hermes Fulfilment, BAUR Group, Hermes Fulfilment, and the Otto Group Holding worked together for three years to realize the new shuttle warehouse. A particular challenge was that the construction had to integrate optimally into the existing infrastructure and was carried out during ongoing operations.

"The commissioning of the shuttle warehouse during ongoing operations was a logistical masterpiece and a challenge for all involved. Despite the large construction site, we were able to deliver at all times. This demonstrates the high professionalism and commitment of our employees and partner companies," emphasizes Kamil Christoph Kasprowicz, CEO of Baur Hermes Fulfilment. "We are proud that we were able to realize this state-of-the-art logistics center together with our partners. We are now looking forward to taking the logistics performance at the site to a new level."

The new shuttle warehouse in Altenkunstadt is not only technically cutting-edge but also an important component in the Otto Group's international logistics network. With around 1,400 employees from 40 nations, the location makes a significant contribution to the economic development of the region and strengthens the Otto Group's position in the highly dynamic and competitive market environment.

For more information about the new shuttle warehouse in Altenkunstadt, click here.
For more stories on logistics in the Otto Group, click here.

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Annette Siragusano
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Kathrin-Luise Fiesel
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About the Otto Group

Founded in 1949 in Germany, the Otto Group is today a globally operating e-commerce and service group with around 38,500 employees in 30 significant corporate groups, primarily present in the three economic areas of Germany, the rest of Europe, and the USA. Its business activities extend to the Platforms, Brand Concepts, Retailers, Services, and Financial Services segments. In the 2023/24 financial year (29 February), the Otto Group generated revenue of EUR 15 billion. With online sales of around EUR 10.8 billion (2023/24 financial year), the Otto Group is among the world's largest online retailers. The Group's main strength is its broad-based presence with various ranges of products for diverse target groups in important regions around the world. A number of strategic partnerships and joint ventures offer the Otto Group outstanding conditions for the transfer of know-how and the use of synergy potential. A high degree of entrepreneurial responsibility and the Group companies' willingness to collaborate guarantee both flexibility and customer proximity along with optimal appeal to target groups in each country.

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