Logistics And Frieght Forwarding

Soennecken to invest in logistics

Similar to fellow German dealer group B?roring, Soennecken has also bucked the general trend of the sector and reported growth across the board.

Similar to fellow German dealer group B?roring, Soennecken has also bucked the general trend of the sector and reported growth across the board.

At its AGM at the end of last month, it also revealed that it would be pumping further investment into its logistics operations to cope with demand.

Despite a difficult market and a general downward trend in the industry, Soennecken reported a total revenue increase of 2.4% for 2016 compared to the previous year and expects further growth in 2017. Its central billing business with suppliers grew 0.5% during the year, with office furniture and office technology doing particularly well (18% and 8.9% respectively). Sales of traditional office products declined.

It was the warehouse business that did particularly well for the dealer group, with an increase of 10.3% year.

Given the growth in demand, the need for a wider product range – Soennecken is looking at growing its portfolio to 25,000 SKUs – and the fact that average order values continue to decline and the amount of parcels shipped increase, the group confirmed that it’s set to invest a further EUR11 million (£12.3 million) in its Overath logistics operation.

This expansion is planned to be completed by the end of 2018.

Overath, Germany



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