H&M is extending its partnership with Arvato Supply Chain Solutions on the move which the latter says is necessary in order to further strengthen a flexible capacity structure with fast process flows within Eastern Europe.

The two partners, who have been working together in Poland since 2018, are extending their cooperation in Poland by several years. Warehouse size will be expanded from 40,000 to 55,000 sq m by April 2022, increasing annual outbound capacity by around 30%.

Currently, online customers in Poland, the Czech Republic, Hungary, Bulgaria, and Slovakia are supplied out of Stryków.

The contract extension also marks the start of expansions at the Stryków distribution centre, scheduled for completion in around six months. The facility will have a total storage area of 75,000 sq m on two levels, with further construction to follow with the completion of a high-bay warehouse and expansion of a conveyor system to more than 3.5 kilometres.

The conveyor is part of the infrastructure needed to offer automated processes in e-commerce logistics, which also includes special sorter systems, self-propelled industrial trucks, dynamic warehouse replenishment, and the modern ERP system SAP S4/HANA, Arvato Supply Chain Solutions explains.

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By GlobalData

“Speed and flexibility in the supply chain are important and this extension will contribute to strengthen our customer promise offering,” says Michael Schulz, regional logistics manager East Europe at the H&M Group. “With a partner like Arvato Supply Chain Solutions, we are basically well positioned to meet the requirements of our growing East European customer base in the future as well.”

Earlier this summer, Swedish second-hand platform Sellpy partnered with H&M Group’s global supply chain unit in Poland as part of a bid to be closer to consumers in the bloc.

H&M Group began its strategic partnership with Sellpy in 2015 through the company’s investment arm H&M CO: LAB with the vision to empower consumers to live in a more circular way and keep fashion in use for as long as possible. The group took a majority stake in the re-commerce business in April 2019.