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Otto Outsources Part of the Logistics to Poland

German e-commerce giant Otto has announced that it is outsourcing some of its own logistics.

Otto Outsources Part of the Logistics to Poland
Source: Depositphotos

The group is building a distribution centre in Poland. From the new location, orders will be picked and shipped to customers in Germany.

Germany’s Otto Group recently announced that revenue dropped by 9% in 2023, reaching a total of €10.8 billion. At the same time, online department store Otto increased its number of retail partners by 33% to more than 6,500. The company also announced that it is opening its marketplace to European sellers.

150 million euro investment

To support further e-commerce growth, the company has invested in its logistics operations. The company recently invested more than €150 million in the construction of a 16,300 square metre automated shuttle warehouse in Germany. It is expected to be operating this summer. With this warehouse, the company aims to process orders within a few hours and offer same-day delivery.

Source: Depositphotos

New distribution centre in Poland

The Hermes Fulfilment Group is opening a new shipping centre in Poland. This is the first time the group has built a completely new site outside Germany. The fulfilment centre will have a total area of 118,000 square meters and will start operations in the second half of this year. From there, up to 1,900 employees will store, pick and ship Otto goods to German customers.

“Poland is very central for a European company like ours. Above all, we can deliver from Iłowa to large parts of Germany the day after the order is placed. Politicians and the administration have been very supportive. At the same time, we are expanding our warehouse logistics at German locations,” said Michael Otto, Chairman of the Supervisory Board and former CEO of the Otto Group.

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