Prologis developed L’Oréal’s largest distribution center in the world in Muggensturm, Germany. The logistics facility meets the German Sustainable Building Council’s gold standard, and its operations are completely carbon neutral. Spanning more than 100,000 square meters, the new distribution center increases the cosmetic manufacturer’s warehouse capacity by more than half and provides space for all of its key logistics processes. L’Oréal will use the logistics facility in Muggensturm to supply its markets in Germany, Austria and Switzerland. Thanks to the efficiency and size of the new distribution center, Prologis is both supporting the growth of the L’Oréal Group and creating new jobs in the region.
At the logistics center in Muggensturm, which began operations in May 2019, L’Oréal offers jobs in many fields not limited exclusively to physical logistics. “Many of our employees work in customer service, credit management, supply planning, logistics controlling, customs, transport and occupational safety,” says Klemens Gschwandtner, director operations DACH, L’Oréal Germany. “The ratio of administrative jobs to jobs in the warehouse is about 40 to 60. We are always looking for new employees and specialists with different skills and backgrounds in every department.”
L’Oréal also hires recent college graduates as junior supply chain managers and junior finance managers year round. “In addition, we continuously train specialists in warehouse logistics and offer combined degree and vocational training programs in business administration with a focus on industrial management in cooperation with the Karlsruhe University of Applied Sciences,” says Klemens Gschwandtner.
Employee well-being is extremely important to L’Oréal, and the company worked closely with Prologis to develop a customized space allocation plan. As a result, everyone who works at the new distribution center benefits from modern open-plan offices, large social spaces, a health room, and a cafeteria with a spacious outdoor area and a small lake. In addition, the logistics facility meets high occupational safety standards. Furthermore, L’Oréal created the conditions necessary for an innovative, activity-based approach to working during development of the distribution center. The building’s different workstations are designed for each specific activity, optimizing space and improving concentration in the process.
Within the scope of its Sharing Beauty with All sustainability program, L’Oréal assumes responsibility for society at large. For instance, in Germany—and throughout the world—the company partners with institutions that integrate people with disabilities into the labor market.
“In Karlsruhe, L’Oréal has worked with worKA (formerly BzKA) for 20 years, a company that provides jobs for people with physical, psychological or mental disabilities,” says Klemens Gschwandtner. “These employees sort returned products or prepare testers for shipping, for example. In Muggensturm, we help people with disabilities in a similar fashion. Here we’ve partnered with Murgtal-Werkstätten & Wohngemeinschaften, a company that offers housing and job opportunities to individuals with disabilities. At our new distribution center, Murgtal-Werkstätten and its employees are responsible for maintaining the green spaces. We are determined to expand this partnership over the next few years and look forward to the future together.”
Strategies to Source, Train and Retain Labour in Logistics Facilities