News | Arvato | Gütersloh/Hamm, 12/14/2020

Construction start for ultra-modern, automated Douglas distribution center in Hamm

Douglas and Arvato Supply Chain Solutions have signalled the start of construction on a new, ultra-modern distribution center in Hamm, North Rhine-Westphalia, with a ground-breaking ceremony. The leading beauty platform requires this new logistics area for its rapidly growing business. In August 2022 Arvato will begin shipping the first orders out of this facility for

Ground-breaking ceremony for new Douglas distribution center (from left): Julia Börs (President Consumer Products, Arvato Supply Chain Solutions), Frank Schirrmeister (CEO, Arvato Supply Chain Solutions), Tina Müller (CEO, Douglas Group), Christian Korte (COO, Douglas Group)

The real estate developer Hines is responsible as development manager for the construction of the new building for Arvato in the Hamm-Uentrop industrial area. The location is particularly attractive due to its optimal location in the eastern Ruhr area offering connections to several major motorways. The distribution center will encompass a total of 38,000 square meters providing storage space for up to 150,000 different articles. "In the future we will manage the entire logistics and fulfilment out of Hamm for Douglas orders out of the D-A-CH region and Netherlands," explains Frank Schirrmeister, CEO of Arvato Supply Chain Solutions, expounding on the range of services. In addition to fulfilling customer orders, returns will also be collected here in the future. The new warehouse is the next stage in the partnership between Douglas and Arvato. Arvato has been operating e-commerce fulfillment for the Beauty company from its location in Ennigerloh (district of Warendorf, Muensterland) since 2000. Douglas and Arvato also enjoy successful international business operations with locations in Italy, Austria and Poland.

With the new logistics center in Hamm, the e-commerce and supply chain service provider is tripling capacity for Douglas. In the past ten years, the Beauty retailer's online sales have grown by an average of 35 percent per year. With increasing digitization, online sales in Germany already accounted for over 40 percent of total sales in the 2019/2020 financial year. Douglas already brought their e-commerce business into focus in 2018 with its #FORWARDBEAUTY strategy and expanded the company into a successful omnichannel retailer with a rapidly growing online business. "Now we take another decisive step forward to evolve the company into the first fully integrated European Beauty platform with a real network of online shops, Marketplace, and retail stores", says Tina Müller, CEO of Douglas Group. "Digital First is our new fundament with the goal to improve all Douglas' processes with digital solutions."

The new distribution center supports their digital aspirations with high- performance automation technology and a cloud-based IT solution. It will house a highly automated shuttle solution including eight kilometers of conveyor. “The investment in the mid double-digit million range required for this project is the largest investment made by Arvato Supply Chain Solutions in a technical infrastructure to date," says Frank Schirrmeister, emphasizing the importance of the project. "Digitization and automation in logistics are crucial building blocks to deliver the Customer Experience of the future. We are incredibly pleased to stand together with Douglas as a partner and support their implementation of the #FORWARDBEAUTY.DIGITALFIRST strategy." The distribution center in Hamm sets the standard for all of Douglas' warehouse locations and underscores their unwavering realization of Digital First. Arvato will create up to 400 new jobs at the new logistics center in Hamm. Staff will work up to three shifts in the warehouse.