Subject:
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DHL opens new DC in Czech Republic for LEGO® Group
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Newsgroups:
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lugnet.mediawatch
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Date:
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Thu, 12 Oct 2006 10:15:47 GMT
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Viewed:
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4275 times
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DHL opens new DC in Czech Republic for LEGO® Group
PRAGUE, Czech Republic -- The LEGO® Group, one of the largest toy manufacturers
in the world and DHL Exel Supply Chain have opened a new European distribution
center (DC) in Jirny near Prague.
Based on a five-year contract the LEGO Group has outsourced all the logistics
activities at the new DC to DHL Exel Supply Chain. As of 2007, every LEGO brick
destined for Europe, Asia, Africa and South America will have passed through the
Czech Republic.
DHL Exel Supply Chain’s warehouse in Jirny, located 10km outside Prague,
occupies a total of 60,000 square metres and is the LEGO Group’s largest DC in
Europe. The facility’s operations include standard logistics activities such as
inbound and outbound logistics operations and storage, as well as value-added
services.
The stock from LEGO Group’s five current distribution facilities in Europe will
gradually be transferred to the new Jirny DC, and some 600 jobs will be created
as a result.
The DC in Jirny currently employs a workforce of 280 and houses products from
three distribution centers – Flensburg, Lyon and Dunkerque. LEGO stock from
Hohenwestedt in Germany and Billund in Denmark will be transferred to the new DC
during the first half of 2007. The new facility will handle distribution to
customers in Europe and throughout the world (except for North America).
“We are convinced that centralizing our distribution activities in the DHL DC in
Jirny will be of great benefit to us. Improving our continuous focus on
logistics operations will support the leading position of our brand,” said Egil
Møller Nielsen, LEGO Group’s Head of Logistics in Europe and Asia. “This step
will enable us to reach our customers within an agreed lead-time, without
defects and in a cost-efficient way.
LEGO elements are moulded in manufacturing plants in Denmark and the Czech
Republic. They are then processed and packaged as finished products in Denmark,
the Czech Republic and the USA. Around 15 billion LEGO bricks and other elements
are manufactured every year. The LEGO Group’s range comprises around 2,000
different elements altogether, in 55 colors and 20 different materials.
DHL is a part of the Deutsche Post World Net group and accounts for 50% of the
Czech Republic’s express logistics business and more than 15% of the logistics
market as a whole. DHL Exel Supply Chain employs more than 1,200 staff in its 11
Czech branches and has a total warehousing capacity of 190,000 sq m.
http://www.ctl.ca/issues/ISArticle.asp?id=60500&issue=09222006
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