Metso Outotec is proceeding with its program to consolidate its warehouse locations and transportation processes for spare and wear parts and related services globally. An efficient and optimized network will increase availability, improve customer service and decrease CO2 emissions. The optimization of logistics is included in the company’s EUR 120 million cost synergy target, it accounts for more than EUR 20 million.
The combined Metso Outotec network has covered more than 40 distribution centers. Once the network is optimized, the company will have 18 warehouses or distribution centers located in all main customer markets.
The new operating model is utilizing strong partners who have recognized global capabilities in providing competitive warehouse services.
An efficient and optimized warehouse network will increase availability, improve customer service and decrease CO2 emissions. Metso Outotec has a new warehouse in Shanghai, China.
Major warehouse opened in Phoenix, Arizona
Consolidation work in Asia, Africa, China and Europe will be concluded in the near future. Metso Outotec already announced that warehouse operations in Finland will be consolidated and outsourced, and a new warehouse will be established to Helsinki. Simultaneously, the current spare and wear parts warehouse in Tampere will be closed.
The new model will be fully implemented by the end of the first half in 2021.“Our target is to enable world-class logistics with easily scalable operations. Flexible, state-of-the-art warehouse operations will allow orders to be collected and dispatched to customers directly from central warehouses. The new model enables considerable savings in the end-to-end freight costs, streamlines transportation, and significantly reduces CO2 emissions,” says Jarkko Aro, Senior Vice President of Customer Logistics at Metso Outotec.
The new center in Phoenix, Arizona, represents one of the Metso Outotec’s largest warehouse operations globally.
CO2 emissions down by 7% in 2020, with 20% reduction target by 2025
“By the end of the third quarter of 2020, we already achieved a 7% reduction of CO2 emissions in our logistics compared to 2019. We are extremely happy to be at the forefront with our CO2 reduction targets,” says Jarkko Aro.
Metso Outotec has announced that it is targeting a net positive impact on the planet with a commitment to the 1.5 °C journey. This will be implemented through sustainable offering, innovations and actions, and be measured by Science Based Targets aiming at a 50% reduction of emissions in own operations by 2030 compared to 2019, and a 20% reduction of logistics emissions by 2025.