Hermes Fulfilment Expands with New Operation in Ilowa, Poland

The Hermes Fulfilment Group is expanding its network with a location for the logistical processing of goods from OTTO and Mytoys. Their goods are to be processed faster and more efficiently in the future, and next-day delivery will be promoted. A symbolic groundbreaking ceremony officially marked the start of construction for a new shipping center in Ilowa, Poland, yesterday.

(Gernsheim/Ilowa) The new location will be tailored to the logistical processing of small-volume assortments such as clothing and toys. The new building in Ilowa is part of an investment program in the mid-three-digit million range, with which the Otto Group aims to reorganize its logistics for the retail companies OTTO and Mytoys and significantly improve the customer experience. The expansion in Gernsheim, Hesse, is also part of this. Both locations will be operated by the Hermes Fulfilment Group.

The logistics center in western Poland, Ilowa, located about 30 kilometers from the German border, is being built on a 260,153 square meter site. The planned building complex will include nine halls with a total area of 118,267 square meters. In the new building, Hermes Fulfilment will store, pick, and ship goods from OTTO and Mytoys with 1,900 employees. Customers in Germany will be served from Ilowa. The shipping center is expected to commence operations by the end of 2023.

Gernsheim Location Will Also Be Expanded

In parallel with the new construction in Ilowa, the central Mytoys logistics location in Gernsheim, Hesse, located 20 kilometers south of Darmstadt, is being expanded and redesigned during ongoing operations. The planned go-live date there is the first quarter of 2024. The background for both construction projects is, on one hand, the growth in volume, and on the other hand, the customers’ desire for faster delivery. Currently, the location processes about 25 million items per year with 1,000 employees. After the expansion, the capacity will increase to 70 million items per year.

Networking of Two Locations

Both locations, Ilowa and Gernsheim, are to operate in a networked manner and will logistically process goods from both OTTO and Mytoys. The majority of shipments are expected to be reliably delivered the day after the order is placed. Optimized processes within the logistics centers will also contribute to this. “Increased automation of intralogistics will accelerate throughput times. This will not only make us faster but also more efficient – to the benefit of the customers, whose shopping experience will be noticeably improved by the shorter package delivery times,” said Julia Hanebuth, head of the overall project at Hermes Fulfilment. “Speed and service are the decisive competitive factors in e-commerce. With improved logistics performance, we will sustainably support the growth of OTTO and Mytoys.”

Photo: © Hermes Fulfilment