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Cost reduction & Efficiency

Cost reduction & Efficiency

Date 20 / 12 / 2014 - By Edwin Vat - Category from the web

As Amazon employees in Germany go on strike, the company has opened three new logistics centers in Poland. They will largely serve the German market, as Amazon does not have e-commerce operations in Poland.

Poland takes up German slack for Amazon – Efficiency

The comments in Polish newspapers were a little smug: “Poles work while Germans strike.” The 4,500 permanent and 7,500 seasonal employees at online retail giant Amazon’s three Polish distribution centers have plenty to do – and that includes fulfilling Christmas orders from Germany.

In late September, the first shipment made its way to Germany from one of Amazon’s Polish distribution centers. It followed a trial run that had lasted several weeks. Employees in the two centers in Wroclaw and the third in Poznan had practiced their jobs until things were running like clockwork.

“We are pleased that our presence in Europe will be extended by three logistics centers in Poland, and that we will create thousands of permanent jobs,” Tim Collins, Amazon Europe’s director of operations, said at the grand opening. He said Poland’s central location in Europe was crucial in the site selection.

Lower wages – Cost reduction

Amazon’s European network has 28 logistics centers, including Poland and the Czech Republic, allows it to make deliveries on time despite walkouts in Germany, the online retailer has said repeatedly. Poland’s lower wages are likely to have played a role in the decision to locate there as cost reduction is very important matter for Amazon. Warehouse employees earn an average of 13 zloty ($3.8, or 3.1 euros) per hour. In Germany, similar jobs pay about 10 euros. But for Polish standards, this is an above-average hourly wage for low-skilled or unskilled labor.

According to Amazon, plans call for between 500,000 to 600,000 packets are to be delivered daily from the Polish centers to Germany.

from the web – Poland takes up German slack for Amazon | Business | DW.COM | 16.12.2014

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