Alnatura logistics: One of the biggest organic distribution centres in Europe

In November 2009 goods started to be delivered to Alnatura’s organic distribution centre. At the end of January the first test runs with supplies to the stores were carried out, and in March of this year the 2,900 stores belonging to the company’s trading partners are switching over to the new supply regime. Before Easter 2010, all 17,000 pallet spaces in the two halls (in total 20,800 m²) will be occupied.  One of the biggest organic distribution centres in Europe has been created in Lorsch in the south of Hessen, and a new era in the story of Alnatura has begun

“Creating this distribution centre has been a very significant achievement for our company,” Götz Rehn, the founder of Alnatura, explained at a press conference in Lorsch. He said it had been a real challenge to change the method of delivering goods to the current 55 Alnatura stores and the 2,900 stores of their trading partners dm, Budni, Globus, Hit, tegut (all German retailers) and Cactus (Luxemburg) from decentralised direct supplies to a centralised system created by the company’s own logistics centre. (Picture: Founder of Alnatura Götz Rehn)
 

They are all over the moon. “We’re already seeing the positive effects,” says Rehn, and Bernhard Sauer, the project manager logistics, is in full agreement. Among the lasting benefits are five to ten fewer deliveries a day to each store and more efficient processes that will enable stores to put the ordered goods straight onto the shelves as they are delivered, because all the dry goods are coming from one source. For Mr Sauer, Lorsch is the “perfect location” with its links to the A5 and A67 motorways. About 100 lorries a day will arrive at the distribution centre to deliver goods at 21 gates and to re-load at a further 14 gates. All products are in the dry goods category. (Picture: Goods entrance)
 

On the site, that measures more than 73,000 m², there are a further 10,000 m² that could be used for building more facilities some time in the future. However, they aren’t thinking about this just now. At the moment, they are expecting 300,000 pallets of incoming goods and deliveries of 320,000 pallets of commissioned goods a year. The 2,900 articles come from around 140 suppliers. About a third of the shelf space is occupied by Alnatura brand products. However, the volume of these goods could be more than twice as high if you consider the demand of the 2,900 stores belonging to Alnatura’s partners in addition to the company’s own stores. (Picture: View of the administration building)
 

22 million euros were invested in the distribution centre, including the site. The warehouse and administration building, with its façade made of larch wood from the local Odenwald were built in just under a year. On the roof is the “Alnatura sun garden”, a photovoltaic installation measuring 7821 m² and producing a peak output of 1100 kilowatts, which is enough to supply an average 260 households with electricity. The saved CO2 emissions are estimated to be over 900 t a year. Other environmentally friendly details are an air-water heat pump for heating and cooling and a geothermal installation for heating the offices. They use only power from hydroelectric generation and supplied by the provider EWS Schönau, which according to Alnatura makes the overall running of the distribution centre just about carbon neutral. (Picture: Alnatura’s priority is being environmentally friendly and protecting the climate)
 

Operating the distribution centre is in the hands of the Rudolph Logistik Group that also manages two other distribution centres adjacent to Alnatura’s facility. Rudolph Logistik planned the commissioning equipment, including a 3,500 m² storage facility for the quick turnround of goods. Scanner technology means commissioning is paperless – the operating system is CHARISMA, that among other things checks the capacity of every incoming pallet, tracks batches and monitors sell-by dates. They planned to employ 55 people but in fact, according to managing director Jürgen Rudolph (picture), when the third shift that is operating up to Easter is reduced to two shifts, they will have created 60 to 65 jobs. In order to strengthen collaboration between Alnatura and Rudolph employees, they have set up a “company culture dialogue” with information-giving events, team-building seminars and workplace experience in Alnatura stores. “This is a way for employees to gain better knowledge of the products and the requirements of the stores,” explains Klaus Böhmer, the head of logistics at Alnatura.
 

Alnatura has service providers who regularly collect goods from the manufacturers, and the company has continued working with firms used to supply the retail trade (Dialog Berlin-Brandenburg GmbH and Andreas Schmidt Transport GmbH). Dry goods are delivered from the distribution centre to the four regional organic wholesalers of the company AG Wert (Naturkost West, Rinklin, Terra and Grell), where there is cross-docking with fresh foods, fruit, vegetables, bread, bakery goods, milk and dairy products. The restructuring of logistics has meant that some companies (for example Pural) have lost out, because they are no longer needed to deliver goods for Alnatura. Götz Rehn says that the new structure is of great benefit to Alnatura.
 

Alnatura in figures

The company was founded in 1984 by Götz Rehn, who is still the managing director and sole shareholder today. There are currently 55 “Super Natur Markt” organic stores in 35 cities in nine of Germany’s federal states. The company also produces 950 organic food items under the Alnatura brand and these are sold in its own Super Natur Markt stores and 2,900 stores belonging to various trading partners. Alnatura currently employs 1,320 staff and 95 apprentices. In the financial year 2008/2009 the company’s turnover of 361 million euros was an increase of 18 % compared with the previous year.