DHL opens new European Distribution Center in Czech Republic for LEGO® Group09/21/2006, 01:00 AM CEST
- New distribution center is LEGO Group's largest in Europe and is set to supply LEGO products to Europe, Asia, Africa and South America
The LEGO Group, one of the largest toy manufacturers in the world and DHL Exel Supply Chain have opened this week 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. DHL Exel Supply Chain is an expert in logistics solutions and is dedicated to outstanding performance in logistics. This and their global and local coverage, offering of continuous improvement programmes, leveraging on their global competences, at competitive cost while still being able to deliver the required service and quality are the main reasons why we have chosen DHL Exel Supply Chain as our logistics partner."
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.
"We look forward to a long and fruitful partnership with the LEGO Group. With our local and global coverage we are pleased to be able to support the LEGO Group in its position as world leading toy manufacturer," said Roger Johnson, Managing Director for DHL Exel Supply Chain in the Czech Republic. The Jirny DC has, at the same time, become the headquarters of DHL Exel Supply Chain in the Czech Republic, the contract logistics arm of the DHL Logistics division in the country.
DHL is a part of the Deutsche Post World Net group and is the leading contract logistics company on the Czech market, accounting for 50% of the country'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.