Milestone for logistics at the heart of Europe: Otto Group opens a logistics center in Iłowa
The Otto Group’s new logistics center in Iłowa, Poland was officially opened today, almost two and a half years after the foundation stone was laid. This pioneering site – considered one of the most state of the art and largest logistics locations in Europe – was inaugurated during a ceremony attended by Krzysztof Gawkowski, Deputy Prime Minister of Poland, and Prof. Dr. Michael Otto – Chairman of the Supervisory Board of the Otto Group. With investments running to a mid three-digit million Euro range, the new logistics center underlines the Otto Group's commitment to innovative logistics and to Europe as a business location.
“The Otto Group is a truly European enterprise. We generate 80 percent of our revenue here and are therefore the largest online retailer with European origin. Our commitment to a strong Europe and prosperous future is unwavering. The European market is a cornerstone of our success and ambitions. We see the Iłowa site as another central hub in the logistics ecosystem within our Group, alongside the strong locations in Germany,” said Prof. Dr. Michael Otto – Chairman of the Supervisory Board of the Otto Group – at the opening ceremony.
Polish Deputy Prime Minister Krzysztof Gawkowski opened the event with the words: "I am pleased that strong European companies such as Otto Group have recognized the investment potential in Poland. It is important that companies become part of the regional ecosystem, recognize the challenges in the region, and engage in cooperation with the local community. The Otto Group's investment in Iłowa is bold, creates attractive jobs at Hermes Fulfilment and, very important to me, brings cutting-edge technologies such as artificial intelligence, automation and robotics to the area. It will strengthen the region and improve its resilience in the coming decades by increasing productivity and competitiveness.”
Back in the summer, the Otto Group had already opened a state-of-the-art shuttle warehouse for About You in Altenkunstadt, Germany. The Haldensleben site in Saxony-Anhalt also celebrated its 30th anniversary in September.
“Many of our colleagues at the two sites come from Poland, which again underlines the close ties between the two countries. This cooperation is a real-life example of the benefits of an open Europe in which borders do not divide, but connect,” says Otto.
Built on an impressive 260,000 square meter site, the center raises the bar within logistics. The result is a building complex spread over nine halls with a floor area of around 118,000 square meters and a usable area of 268,000 square meters. This means that just the building space alone is equivalent to 16 soccer pitches.
Kay Schiebur, Member of the Otto Group Executive Board Services, said: “Not only are we using the opening of this logistics center to celebrate the completion of a challenging construction project, we are also marking the start of a new era in logistics. We have substantially transformed our logistics and continuously expanded our network of locations over recent years. And in doing so, we have remained true to our principle: rooted in Germany, at home in Europe and active worldwide.”
The Otto Group has now reached yet another milestone with the opening of the new logistics center in Iłowa. The site will be operated by the Polish company Hermes Fulfilment Sp. z o.o., a wholly-owned subsidiary of the Hermes Fulfilment Group with headquarters in Hamburg. For the first time in the company’s history, Hermes Fulfilment has designed and built a completely new site in another European country. Going forward, the facility will expand the logistics network and European focus within the Otto Group. Hermes Fulfilment already operates sites in Germany, Czechia, Italy and Switzerland.
Investments in technology strengthen performance
At the heart of the new center is a state-of-the-art pouch sorter that enables efficient and automated picking. Operating at a speed of up to half a meter per second, the pouch sorter can transport up to 18,000 items per hour. This strong performance opens the door to next-day delivery for up to 60 percent of orders, significantly increasing the competitive edge in the agile e-commerce market.
“The speed and precision of our operations here will bring real improvement to customers’ shopping experience,” said Kevin Kufs, CEO of the Hermes Fulfilment Group. Hermes Fulfilment will be able to slash delivery times and maximize efficiency thanks to automated facilities and optimized logistics processes at the new center in Iłowa. “Our new site in Iłowa is located at the heart of Europe and is just a stone’s throw away from Germany. We believe that a strong European network is the ideal basis on which to build for the future. We are now looking forward to the continued ramp-up with our dedicated colleagues on site,” says Kufs.
From a strategic perspective, the site is designed to cater to the needs of customers in Germany, France, Austria, and the Netherlands, in addition to Poland itself. The facility is able to process and ship up to 110 million consignments every year, which impressively highlights its capacity and efficiency. Moving forward, up to 1,900 employees will work here and take charge of the efficient processing of orders placed on the OTTO platform. Operations in Iłowa have already started and in the coming year the site is scheduled to ramp up to full capacity in order to meet the growing demands of e-commerce.
Tech panel on the future of logistics
A high-level tech talk was among the highlights of the opening, aside from an exclusive tour of the facility and the ceremony itself. Prof. Justyna Patalas-Maliszewska from the University of Zielona Góra, Marc Theermann, CSO Boston Dynamics, Ted Stinson, CEO Covariant, and Kevin Kufs discussed the challenges and opportunities of modern logistics with leading experts from the fields of logistics, teaching and robotics. The discussions emphasized the strategic importance of the new location for the Otto Group and the role of technology in the future of logistics.
To obtain the complete press kit on the new logistics center, including printable image material from the event and the site, click here.
For more background information about the logistics center in Iłowa, click here.
Learn more about Hermes Fulfilment at: www.hermes-fulfilment.com
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About Otto Group
Founded in 1949 in Germany, the Otto Group is today a globally operating e-commerce and service group with around 38,500 employees in 30 significant corporate groups, primarily present in the three economic areas of Germany, the rest of Europe, and the USA. Its business activities extend to the Platforms, Brand Concepts, Retailers, Services, and Financial Services segments. In the 2023/24 financial year (29 February), the Otto Group generated revenue of EUR 15 billion. With online sales of around EUR 10.8 billion (2023/24 financial year), the Otto Group is among the world’s largest online retailers. The Group’s main strength is its broad-based presence with various ranges of products for diverse target groups in important regions around the world. A number of strategic partnerships and joint ventures offer the Otto Group outstanding conditions for the transfer of know-how and the use of synergy potential. A high degree of entrepreneurial responsibility and the Group companies’ willingness to collaborate guarantee both flexibility and customer proximity along with optimal appeal to target groups in each country.