MTH-Handelsgruppe lays foundations for a new logistics centre

New central warehouse for LIBRO, PAGRO and eplus in the Businesspark Müllendorf from autumn 2011

In future, the trading establishment comprising LIBRO, PAGRO and eplus is to be supplied from one central location. To this effect, the MTH-Group, to which the three mentioned companies belong, is building a new, efficient state-of-the-art central warehouse for the Austrian market, using the warehouse management system METALAG by Metasyst.

Hans Niessl, the responsible project managers and further guests of honour took part in the eremonial laying of the new central warehouse’s first stone on 25 August. It will be opened in 2011, initially with 85 members of staff.

Until now the three companies Libro, Pagro and eplus operated warehouses on four different sites. This meant high costs for the MTH-Group due to multiple management, costly internal logistics processes and the increased truck transport between temporary warehousing. For these reasons it was decided that opening a joint central warehouse would be the perfect solution for the sustainable growth of the trading group in Austria and the project will be realised between July 2010 and autumn 2011.

New logistics centre for the MTH-Group from autumn 2011

In the search for a location, Müllendorf proved to be the most convenient choice. The easily accessible location with near access to the motorway was one of the crucial factors for the choice of location. Furthermore, the positive assessment of the collection area, as well as its easy accessibility for new employees were vital factors.

The main functions of the new logistics centre will be warehousing, branch and customer friendly order picking, dispatch and transport for the Austrian branches of LIBRO and PAGRO, as well as dispatch for eplus. The Viennese company Metasyst Informatik GmbH will supply the METALAG warehouse management system, MLOG Logistics from Neuenstadt will act as general contractor.

Future-oriented distribution centre for 17.000 pallet slots

The site is approximately 51.000 square metres. On completion, the warehouse will provide work places for 85 employees in approximately 23.000 square metres – in the long run about 125 workers should find employment there. There are plans for a modern, automatic high-rise racking store for approximately 17.000 pallets, about 26 metres above the ground, and an automatic, heavy-duty sorting system for approx. 20.000 products per hour. The manual storage will be operated by a paperless process via wireless scanning terminals. METALAG will supply the interface with SAP and the REWE inventory control system, which is vitally important in this project. METALAG is already being used by the German company Pfennigpfeifer, also a member of the MTH-Group.

Furthermore, the MTH-Group is investing in state-of-the-art order picking systems and works with efficient technology for in and outbound delivery. The total investment sum is approximately 36 m. Euro. The building project is supported by the European Union, the European Regional Development Fund (ERDF), the state and the county Burgenland. The funding amounts to approx. 12%. More information on http://ec.europa.eu/.

New central warehouse causes significant synergy effects

Merging the existent storage locations into one warehouse will result in synergy effects in stock keeping and transport of about 20 per cent per year. This, for example, will eliminate all double stock keeping and transports to temporary storage, thus significantly lowering transportation costs. Furthermore, the modern logistics technology reduces the employees’ physical workload and shortens the periods between delivery at the warehouse and sales at subsidiaries.