Metso Outotec’s Global Warehouse Footprint Reduces Costs and CO2 Emissions

Metso Outotec consolidates warehouses
An efficient and optimized warehouse network will increase availability, improve customer service and decrease CO2 emissions. Metso Outotec has a new warehouse in Shanghai, China.

Metso Outotec consolidates warehouses locations and transportation processes for spare and wear parts and related services globally.  An efficient and optimized network will increase availability, improve customer service and decrease CO2 emissions. The optimization of logistics is part of the company’s EUR 120 million synergy target. It accounts for more than EUR 20 million.

The combined Metso Outotec network has covered more than 40 distribution centers. Once optimized, the network the company will have 18 warehouses or distribution centers located in all main customer markets.

The new operating model is utilizing strong partners who have recognized global capabilities in providing competitive warehouse services.

Major warehouse opened in Phoenix, Arizona

Consolidation work in Asia, Africa, China and Europe will be concluded in the near future. Metso Outotec already announced that warehouse operations in Finland will be consolidated and outsourced. A new warehouse will be established to Helsinki. Simultaneously, the current spare and wear parts warehouse in Tampere will be closed.

The new model will be at full implementation by the end of the first half in 2021.“Our target is to enable world-class logistics with easily scalable operations. Flexible, state-of-the-art warehouse operations allow the collection and dispatch of orders to customers directly from central warehouses. The new model enables considerable savings in the end-to-end freight costs. It also streamlines transportation, and significantly reduces CO2 emissions,” says Jarkko Aro, Senior Vice President of Customer Logistics at Metso Outotec.

CO2 emissions down by 7% in 2020, with 20% reduction target by 2025

“By the end of the third quarter of 2020, we already achieved a 7% reduction of CO2 emissions in our logistics compared to 2019. We are extremely happy to be at the forefront with our CO2 reduction targets,” says Jarkko Aro.

Metso Outotec has announced that it is targeting a net positive impact on the planet with a commitment to the 1.5 °C journey. The implementation is through sustainable offering, innovations and actions, and the measurement happens by Science Based Targets. Metso Outotec consolidates warehouses and aims at a 50% reduction of emissions in own operations by 2030 compared to 2019, and a 20% reduction of logistics emissions by 2025.

About Metso Outotec

Metso Outotec is a frontrunner in sustainable technologies, end-to-end solutions and services for the aggregates, minerals processing, metals refining and recycling industries globally. By improving both their customers’ energy and water efficiency, increasing their productivity, and reducing environmental risks with our product and process expertise, we are the partner for positive change.

Metso Outotec has its headquarters in Helsinki, Finland, Metso Outotec. It also employs over 15,000 people in more than 50 countries. Additionally, its pro forma sales for 2019 were about EUR 4.1 billion.

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