Third-party logistics company FM Logistic has renewed and expanded its e-commerce logistics contract with the German DIY retailer Bauhaus. The new contract has led to doubling the size of the Lovosice fulfilment centre, in the Czech Republic, from 30,000 to 60,000 sq m.
FM Logistic is managing Bauhaus’ online orders and distribution to consumers in Austria and Germany from Lovosice, a Czech town located near the German border. The cooperation started in 2018. Under the new contract, FM Logistic will handle a broader range of Bauhaus products. Bauhaus is indeed planning to bring the range of products stored in Lovosice from 30,000 to 100,000 SKU by 2030.
“In 2020, we handled 66% more orders than the year before. In 2021, we expect volume to increase by another 34%, which brings us to more than one million orders per year. To support this growth, we have been closely cooperating with Bauhaus to co-design and automate warehouse processes,” says Guilhem Vicaire, Business Solutions Director Central Europe at FM Logistic.
The contract covers further investments in automation. FM Logistic and Bauhaus have set up an on-demand packaging machine to produce the right size box for non-conveyable items. They have also invested in automated sorters and a goods-to-person picking system to improve order processing.
The additional warehousing space was delivered by P3 Logistic Parks. It was inaugurated in October 2021 by Johannes Wechsler, SVP E-Commerce & Digital at Bauhaus, and Jean-Christophe Machet, FM Logistic’s CEO.
“We decided to work with FM Logistic in 2018. Together we have succeeded in setting up an important link in our e-commerce logistics chain. We see FM Logistic as a strategic partner. That is why we have decided to extend our partnership by investing heavily in this fulfilment facility,” said Jérôme Biencourt, head of e-commerce logistics at Bauhaus.