In the near future, every LEGO brick destined for Europe, Asia, Africa and South America will pass through the Czech Republic. It all turns on a decision by LEGO Group, one of the world's largest toy manufacturers, to work with DHL Exel Supply Chain at the former's 60,000-square-meter distribution center in Jirny, 10 kilometers from Prague. Under a five-year contract DHL Exel Supply Chain will handle all logistics activities at the new DC.
Operations at the facility, the LEGO Group's largest DC in Europe, include inbound and outbound logistics, storage and value-added services. Product distribution to North America is not affected.
The stock from the toy maker'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.
"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," says 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 programs, 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 molded 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," says Roger Johnson, managing director for DHL Exel Supply Chain in the Czech Republic. The Jirny DC has become the headquarters of DHL Exel Supply Chain in the Czech Republic.
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