RS Components expands German distribution centre
The distributor is expanding its distribution centre in Bad Hersfeld, Germany as part of its strategy to build a more scalable and customer-centric supply chain. The company is investing EUR 65 million in this project which will expand and automate the centre, doubling its capacity from day one.
Following a review of the global RS distribution centre network, it was decided that the Bad Hersfeld centre was the best choice for expansion. RS will retain its other distribution centres across EMEA, ensuring future growth and range expansion for the region. Currently the centre in Bad Hersfeld stocks 140'000 industrial and electronics products but the new expanded centre will be able to accommodate a product range of over 450'000. The company is looking to kick off the expansion project in June 2019 and expects it to be fully operational within two years, a press release reads. The new 35'000 square metre distribution centre will not only serve customers in Germany but also other markets across Europe, aiming to maximise opportunities for further growth across the region, particularly in Eastern Europe. Automation in the new centre will increase efficiency and decrease waste, particularly in packaging and shipping costs. Automatic storage and retrieval systems will be installed as well as automated packaging machines, helping to manage our environmental performance. The company also states that the expansion will also create a range of new jobs in Northern Hesse without specifying how many. "Germany is a market of strategic importance to RS and the Electrocomponents Group. We have experienced strong growth across Central Europe and expansion of our Bad Hersfeld DC will greatly increase capacity throughput and allow for further range expansion across the region. Our aim is to become first choice for our customers, suppliers, employees and shareholders so this investment will certainly help us to offer best-in-class service,” says Jürgen Lampert, Vice President, Central Europe at RS Components, in the release.