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Sportswear company Adidas, in partnership with DHL Supply Chain, is operating a new Distribution Center in Extrema, Minas Gerais. The facility in question is the Cy.log Modal Extrema I, owned by Cy.Capital and Banco Modal.
According to a statement from the companies, an investment of R$ 70 million was made in facilities that were built from scratch. The new DC will be Adidas's main logistics hub in Brazil and will serve the demand of the brand's official stores, e-commerce, and retail.
With around 40,000 square meters, the warehouse accommodates 50,000 SKUs, also known as Stock Keeping Units, and five million items. The facilities already start with the LEED sustainable certification, for its good practices in energy saving and waste reuse.
The installation of a solar power plant is also planned, which will generate 35% of the energy consumption for the entire operation. This project has created 400 direct jobs in Extrema, with part of the team coming from other Adidas operations.
Adidas is moving away from its own operation at the Distribution Park Embu I, where it occupied 32,000 square meters, and now the operation is outsourced by DHL in Extrema. Andre Biancardini, Senior Director of Supply Chain Management at Adidas Brazil, states that the DC is part of the company's growth strategy.
"The new distribution center ensures us a solid platform for the expected growth for the company in the coming years. The move to Extrema brings us closer to our key customers in the region and guarantees more technology and automation, with a strong focus on sustainability," says Biancardini.
According to the company, the DC will have its own inventory management system (WMS), automatic conveyors, and automation of other processes such as the automated product sorting equipment, aimed at e-commerce.
Gabriela Guimarães, Vice President of Retail and E-commerce at DHL Supply Chain, explains that the operation will be unprecedented for Adidas in the country and will bring a new operational flow.
"This new DC brings a new vision to Adidas's logistics design in Brazil. It captures the most favorable conditions in the region and brings a new operational flow with a lot of logistical intelligence and embedded technology. With this, we will provide greater agility in deliveries, reliability, and efficiency. This will be one of the most modern operations in Brazil, as we will almost completely automate three processes: cargo movement in the warehouse, sorting in e-commerce, and packaging," says Guimarães.











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