Otto is Outsourcing Part of the Logistics to Poland

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German ecommerce giant Otto has announced outsourcing part of its own logistics. The Group is building a shipping center in Poland. From the new location orders will be picked and shipped to German customers.

Otto’s logistics are handled by the Hermes Fulfillment Group, which is Otto Group’s own logistics arm. It is now adding a new shipping center in Iłowa, Poland, about an hour’s drive east of Cottbus. The fulfillment center will be 118,000 square meters in total and will start operations in the fall of this year. From there, up to 1,900 employees will store, pick and ship Otto goods to German customers. It is the first time in the company’s history that Hermes Fulfillment is building a completely new location outside of Germany.

This is what Michael Otto, Chairman of Otto Group’s supervisory board and former CEO, said about this decision in the interview for Focus : “Poland is very central for a European company like ours. Above all, we will be able to deliver from Iłowa to large parts of Germany the day after the order is placed. Politics and administration supported us very well in the implementation. At the same time, we are expanding our warehouse logistics at German locations”.