New logistics facility for Lindex

New logistics facility for Lindex inaugurated at Schenker-BTL on 31 January 2000. Lindex is taking yet another step in refining its logistics handling to make it better equipped to meet variations in demand for products in different parts of the store network. The Group has so far not made use of any central warehouse - all products have been transported direct from supplier to store. The transports to Lindex's stores in the Nordic countries and in Germany are handled by the transport and logistics company, Schenker-BTL, via its distribution centre in Gothenburg, Sweden. After having studied the opportunities for and consequences of refining its logistics handling still further for some years, Lindex is now establishing a small storage area at Schenker-BTL with two functions, a top-up inventory and a service inventory. The top-up inventory is being established for fashion products: 25-30 per cent of the garments are not distributed direct to the store but remain at Schenker-BTL for 2-3 weeks. Thereafter, the stores which quickly sell-out individual products will receive replenishment from the top-up inventory. Most European suppliers of staple products maintain an inventory on Lindex's behalf. For the suppliers who do not have this opportunity, or when the lead-time for rapid top-up is too long, a service inventory is established. Through deliveries from this inventory, Lindex is able to ensure that its shelves are always full and that opportunities for increased sales are utilised. Handling of the top-up and service inventories takes place in a sorting facility for the automatic distribution of garments to the stores. It has been installed in the distribution centre at Schenker-BTL. The total investment for the sorting facility including advanced IT support amounts to approximately SEK 50M. Schenker-BTL is responsible for that investment. AB Lindex and Schenker-BTL have drawn up a five-year agreement which regulates prices for the handled product volumes. The new logistics facility at the distribution centre in Gothenburg means that it is possible the product flows handled per day can increase four times, from currently manual handling of approximately 10,000 sorting units to around 40,000 sorting units per day. The sorting facility is one of the most advanced in Europe and will be in operation from the inauguration on Monday 31 January 2000. The automatic sorting line is 400 metres long and has 350 store shutes. In case of need, the facility can be expanded further. "The refined logistics solution and the new sorting facility will together increase the flexibility and precision in Lindex's product flow to our stores in the Nordic countries and in Germany. This will lead to improved profitability through an increased sales rate and reduced price discounts," says Hans Johansson, President and CEO of AB Lindex. For further comments, please contact: Hans Johansson, President and CEO Telephone: +46 322 - 777 02 Leif Larsson, Executive Vice President Telephone: +46 322 - 777 34 Håkan Åkerström, Director Logistics Telephone: +46 322 - 776 25 Per-Olof Holmberg, General Manager Tender Management, Schenker BTL Telephone: +46 31-703 82 75 Lindex is a retail chain with 296 stores on the Nordic market and 17 stores in Germany. The Group's product segment are ladies' wear, lingerie, children's clothing and Lindex Care - cosmetics and body care products. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/01/31/20000131BIT00150/bit0001.doc http://www.bit.se/bitonline/2000/01/31/20000131BIT00150/bit0002.pdf