Metso Outotec target world-class logistics
Optimization of global warehouse footprint reduces costs, improves availability and decreases CO2 emissions
METSO Outotec are proceeding with their programme to consolidate their warehouse locations and transportation processes for spare and wear parts and related services globally.
The company says 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 €120 million cost synergy target, it accounts for more than €20 million.
The combined Metso Outotec network currently has more than 40 distribution centres. Once the network has been optimized, the company will have 18 warehouses or distribution centres located in all main customer markets.
The new operating model will utilize strong partners who have recognized global capabilities in providing competitive warehouse services.
As already announced, Metso Outotec’s current warehouse operations in Finland will be consolidated and outsourced, and a new warehouse will be established in Helsinki. At the same time, the existing spare and wear parts warehouse in Tampere will be closed.
Consolidation work in Asia, Africa, China and Europe will be concluded in the near future, and the new model will be fully implemented by the end of the first half of 2021.
‘Our target is to enable world-class logistics with easily scalable operations,’ said Jarkko Aro, senior vice-president of customer logistics at Metso Outotec.
‘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 end-to-end freight costs, streamlines transportation and significantly reduces CO2 emissions.
‘We are extremely happy to be at the forefront with our CO2-reduction targets. By the end of the third quarter of 2020, we had already achieved a 7% reduction in CO2 emissions in our logistics compared with 2019.’
Metso Outotec have announced that they are targeting a net positive impact on the planet with a commitment to the 1.5°C journey. This will be implemented through sustainable offerings, innovations and actions, and be measured by Science Based Targets aiming at a 50% reduction of emissions in the company’s own operations by 2030 compared with 2019, and a 20% reduction in logistics emissions by 2025.
