Metso Outotec has announced it will be consolidating its warehouse and transport location processes to increase availability, improve customer service and decrease CO2 emissions.
The logistics company said its efficient and optimised network is included in the company’s €120m (£109m) cost synergy target, accounting for more than €20m (£18m).
The new model will reportedly be fully implemented by the end of the first half in 2021 with CO2 emissions already down by 7% in 2020.
Metso Outotec has also announced that it is targeting a net” positive impact” on the planet with a commitment to the 1.5 °C journey.
This will be implemented through “sustainable offering, innovations and actions”, and be measured by Science Based Targets aiming at a 50% reduction of emissions in own operations by 2030 compared to 2019.
The combined Metso Outotec network covers more than 40 distribution centres, once the network is optimised, the group said it will have 18 warehouses or distribution centres located in all main customer markets.
The new operating model will utilise the groups “strong partners” who have recognised global capabilities in providing competitive warehouse services.
Jarkko Aro, senior VP of customer logistics at Metso Outotec, said: “Our target is to enable world-class logistics with easily scalable operations. Flexible, state-of-the-art warehouse operations will allow orders to be collected and dispatched to customers directly from central warehouses.
“The new model enables considerable savings in the end-to-end freight costs, streamlines transportation, and significantly reduces CO2 emissions. By the end of the third quarter of 2020, we already achieved a 7% reduction of CO2 emissions in our logistics compared to 2019.”