Shortfacts - March 2018

Supply chain for cosmetics group

Arvato SCM Solutions plans to expand its site in Düren to a total of around 85,000 square meters of logistics space. To this end, a new 11,000 square meter hall module will be built by July 2018.

The capacity expansion is necessary because the transaction volume for a leading global cosmetics and beauty group will increase by more than 50 percent in the future.

The customer will use around 50,000 square meters of logistics space in the multi-brand distribution center. In order to cope with the higher volume until the extension in Düren is commissioned, Arvato SCM Solutions rented a temporary external warehouse in Krefeld in summer 2017, which is expected to be used for the short-term storage and distribution of cosmetic products until the beginning of 2019.

Arvato has implemented modern technical and organizational measures to meet the specific requirements. A system was also installed to continuously monitor storage conditions, including temperature and humidity.

The Arvato SAP system has also implemented full batch tracking, including shelf life monitoring and shipping with the "First Expired - First Out" (FEFO) access strategy, in which warehouse management always removes the goods with the most recent expiry date first.