FM Logistic has renewed and expanded its e-commerce logistics contract with the German DIY retailer Bauhaus. The new contract has led to doubling the size of the Lovosice fulfilment centre, in the Czech Republic, from 30,000 to 60,000 square metres.
FM Logistic is managing Bauhaus’ online orders and distribution to consumers in Austria and Germany from Lovosice, a Czech town located near the German border. The cooperation started in 2018. Under the new contract, FM Logistic will handle a broader range of Bauhaus products. Bauhaus is indeed planning to bring the range of products stored in Lovosice from 30,000 to 100,000 stock keeping units (SKU) by 2030.
“In 2020, we handled 66% more orders than the year before. In 2021, we expect volume to increase by another 34%, which brings us to more than 1 million orders per year. To support this growth, we have been closely cooperating with Bauhaus to co-design and automate warehouse processes,” says Guilhem Vicaire, Business Solutions Director Central Europe at FM Logistic.
The contract covers further investments in automation. FM Logistic and Bauhaus have set up an on-demand packaging machine to produce the right size box for non-conveyable items. They have also invested in automated sorters and a “goods to person” picking system to improve order processing.
“We decided to work with FM Logistic in 2018. Together we have succeeded in setting up an important link in our e-commerce logistics chain. We see FM Logistic as a strategic partner. That is why we have decided to extend our partnership by investing heavily in this fulfilment facility,” said Jérôme Biencourt, head of e-commerce logistics at Bauhaus.
Supporting the development of sustainable omnichannel supply chains is central to FM Logistic’s strategy, as illustrated in its tagline: “Supply Change”. Founded in France in 1967, the family-owned company provides supply chain services to companies in the FMCG, retail, beauty-cosmetics, industrial manufacturing and healthcare industries. Its services include warehousing, omnichannel fulfilment, co-packing, domestic and international transport, urban logistics operations, as well as supply chain control tower services. FM Logistic is active in more than 14 countries across Europe, Asia, and Latin America. It has annual revenues of about €1.4 billion and 27,200 FTE employees.