Vestas outsources Warehouse Operations in Europe

Vestas creates a more scalable supply chain organisation in the EMEA region (Europe – Middle East – Africa) by outsourcing warehouse operations for spare parts and service tools to logistics supplier DB Schenker. This move is part of Vestas’ strategy to reduce operational and capacity costs, while at the same time maintaining Vestas’ high quality service standards for customers.

As part of establishing this change 22 local warehouses will be closed and the new spare parts network will be mainly organised by one central warehouse in Germany (Grimma near Leipzig), and three area warehouses in Romania (Bucharest), Spain (Ourense) and Sweden (Umeå)

In addition approximately 75 emergency stock locations will be established throughout the EMEA region to secure two-three hour service for turbine spare part orders. External logistics providers will operate these stock locations.

Scalable and flexible
Tommy Rahbek Nielsen, Global Senior Vice President of Supply Chain Planning explains outsourcing of spare part operations will enable Vestas to convert fixed costs into variable costs and thereby create a more scalable and flexible set up that maintains high standards of service for customers.

“Our supply chain setup becomes more scalable because we can open and close depots depending on service contracts with customers and adjust our warehouse capacity as the demand fluctuates,” he says.

“We chose DB Schenker because they can match our strategic need for storing and distributing spare parts and tools in the EMEA region and have proven to be a reliable and valued business partner. DB Schenker knows our processes and systems already, and we are looking forward to building on our existing relationship with them to maintain the same quality of spare parts distribution our customers expect.”

Dr. Thomas Böger, member of the Board of Management, Schenker Deutschland AG explains Vestas and DB Schenker have been working together closely and successfully for many years.

“DB Schenker is well versed in the specific services Vestas needs to process spare parts, tools and components: we provide a high-capacity network with a European center of distribution located in Grimma (near Leipzig), and three regional warehouses in Sweden, Romania and Spain. We use an SAP GWS system to manage all the processes involved, ensuring that every Vestas spare part, tool and component is handled on time in a service-focused and cost-oriented way.”

Vestas has 150 employees working with the daily operation of spare parts & tools in warehousing in the EMEA region and will adjust the workforce in the warehouses primarily by working to transfer employees to DB Schenker in similar positions or looking for other possibilities within Vestas wherever possible.

Tools for construction operations for Vestas’ Northern Europe and Offshore business units will remain handled by Vestas.

DB Schenker stands for the transportation and logistics activities of Deutsche Bahn (DB). The logistics division of DB is the world’s second largest transportation and logistics service provider based on sales and performance. In the financial year 2012, over 95,000 employees in 130 countries generated sales of around 20.3 billion euros. Through its Transportation and Logistics Division, DB holds top positions in global air and ocean freight and has Europe’s most extensive national transport network and the rail expertise of Europe’s largest rail freight company. With around 2,000 locations in the world’s most important economic regions, DB’s logistics division has a global network geared toward customer service, quality and sustainability.

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Today, Vestas has delivered wind energy in 73 countries, providing jobs for around 18,000 passionate people at our service and project sites, research facilities, factories and offices all over the world. With 62 per cent more megawatts installed than our closest competitor and more than 55 GW of cumulative installed capacity worldwide, Vestas is the world leader in wind energy.

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Source: Vestas

For more information on: Vestas