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Hermes modernises logistics centre in Germany for growing e-commerce demand

The expanded Hermes Löhne logistics centre

Hermes Fulfilment, the e-commerce unit of the Hermes Group, has renovated and modernised its logistics centre in Löhne, North-Rhine Westphalia, investing a double-digit million sum in the site to prepare for growing online business with customers.

As part of the facility’s reconstruction which began in January 2015 and was completed last December, Hermes demolished a hall of around 16,000 sqm and replaced it with a new building which is around 4,000 sqm larger. The modernisation was carried in parallel with the construction of a 100,000 sqm logistics centre in the nearby industrial area of Scheidkamp which will be completed in spring 2016.

With approximately 16.5 metres, the new hall in Schillenbrink is 11.5 metres higher than the previous one. “This gives us much more flexibility in terms of utilisation than before,” Roland Ewert, Facility Manager of Hermes Fulfilment in Löhne, said. “At the new building, we can handle all product groups logistically – from t-shirts to box spring beds. This multi-functionality makes the location for existing and potential customers even more interesting.”

The interior part of the facility, for example the installation of shelf technology, is adapted to the requirements of the online retailers who entrust Hermes Fulfilment with storage and other services. “The hall offers all the possibilities for appropriate installations,” Ewert explained.

Next to the hall, Hermes constructed a two-storey building for administrative purposes. It provides space for offices as well as meeting and social rooms. “Prior to the renovations, these areas were very cramped. With the increasing number of clients, however, we need more offices to serve our customers on site in an appropriate way,” Ewert said. The building also features technology and workshop rooms.

Through the addition of 4,000 sqm as part of the modernisation, the total area of the logistics centre in Löhne has increased to 54,000 sqm. “We are very satisfied with the result and the construction quality,” Ewert said.

The modernised site features a block heating station driven by natural gas which will generate 43% of the electricity needed and cover about 60% of the heat demand at the facility. The combined heat and power plant is based on the principle of power-heat cogeneration and is supposed to run 4,000 hours per year.

“Both the electricity generated and the arising heat will be fully consumed at the logistics centre,” Michael Schekatz, Head of Product Engineering at Hermes Fulfilment, said. He calculated that the cogeneration plant can save around €77,000 in energy costs per year. “At the same time, we reduce the CO2 emissions by 280 tons annually.” This way, the block heating station and the state-of-the-art LED technology considerably increase the energy efficiency and improve the ecological balance of the site in Löhne.

The new 100,000 sqm logistics centre in Scheidkamp will be used for logistical handling of large items, responding to the volume growth that Hermes parent group Otto has recorded in the 2-man handling segment. After the completion of the centre’s construction in spring this year, the storage activities of Hermes Fulfilment and the transport services of the company’s 2-man handling unit Hermes Einrichtungs Service will be bundled for the first time at the common logistics centre.

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