adidas Group Chooses Germany for its Biggest DC

The adidas Group announced that Niedersachsenpark, Germany, would be the site of its biggest distribution center yet. Scheduled to be completed in the first half of 2013, the planned distribution center will consolidate all flows and services under one roof for all three sales channels of both the adidas and Reebok brands: Wholesale, Own Retail and eCommerce. Products will be delivered across all of Western Europe from this 592,000 sq ft facility. Parts of the distribution center will reach a height of 125 ft.

More than 200 permanent jobs will be created and a total of more than EUR 100 million ($144 million US) will be invested by the time of the planned completion.

“Until 2015, we want to grow our business to € 17 billion,” said Herbert Hainer, adidas Group CEO. “The new distribution center will enable us to bring our products faster and more efficiently to our customers and consumers.”

From the planned distribution center in Niedersachsenpark, products will be delivered all across Western Europe with annual throughput expected to exceed 100 million pieces by 2015. A mix of standardized distribution processes, full automation and integrated IT solutions will be employed.

“This facility will enable us to reduce complexity, increase productivity and offer better services to our customers,” added Glenn Bennett, executive board member of the adidas Group, responsible for Global Operations.

Ground is planned to be broken at the Niedersachsenpark location in August 2011. The go-live of the facility is expected to take place in the first half of 2013 with the distribution center forecasted to reach its full capacity by 2015. The facility will be part of the adidas Group’s Green Company initiative which aims to reduce the environmental footprint of the Group’s own locations.

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