Wartsila will strengthen its international customer service by centralizing the spare parts logistics and by building a new spare parts distribution centre in the Netherlands. A large and modern central warehouse is planned near the company's current service unit in the Netherlands. Wartsila will invest approximately EUR 70 million in the new distribution centre. The investments will be spread over three years from 2008 to 2010. The intention is to outsource logistics and warehousing operations.
"Consolidating logistics and warehousing within a specialised partner will improve customer service by allowing parts deliveries 24 hours a day 7 days a week," comments Tage Blomberg, Group Vice President, Services. "The new central warehouse will shorten transportation distances, reduce the traffic of spare parts between warehouses, and improve management of the entire supply chain," adds Blomberg.
Wartsila has seven product companies: in Finland, Italy, the Netherlands, France, Sweden, Norway and Switzerland. Today the product companies are responsible for the global logistics of their own product groups. By centralising these activities, customers will receive faster and more efficient service.
The new arrangements in different countries will affect approximately 550 employees and job assignments of many employees will change. There will be no lay-offs due to this rearrangement. The new operating model is planned to be fully implemented by 2011.