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Metso Outotec to optimise global warehouse footprint

Published by , Deputy Editor
World Cement,

Metso Outotec is proceeding with its programme to consolidate its warehouse locations and transportation processes for spare and wear parts and related services globally. An efficient and optimised network will increase availability, improve customer service and decrease CO2 emissions. The optimisation of logistics is included in the company’s €120 million cost synergy target, and accounts for more than €20 million.

The combined Metso Outotec network has covered more than 40 distribution centres. Once the network is optimised, the company will have 18 warehouses or distribution centres located in all main customer markets.

The new operating model is utilising strong partners who have recognised global capabilities in providing competitive warehouse services.

Consolidation work in Asia, Africa, China and Europe will be concluded in the near future. Metso Outotec has 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.

“By the end of the third quarter of 2020, we 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 operations by 2030 compared to 2019, and a 20% reduction of logistics emissions by 2025.

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