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Amazon case study

Challenge

Amazon handles about €23.7 billion worth of its own products as well as those of other companies and individuals in Europe every year

Driven by the exponential growth of e-commerce, Amazon continues to expand its global operations. Increased product and service offerings and scaled infrastructure support its retail and services businesses and meet ever-growing consumer demand for rapid product delivery to the doorstep. What began with Goodman’s development of a logistics warehouse for Amazon in Leipzig, Germany, in 2006, led to a solid, long-standing development relationship between the two parties. Amazon works with Goodman to benefit from our flexible approach to design and drive to meet customer needs. Since Leipzig, Amazon has called on Goodman for the delivery of 12 additional projects in France, Germany, Poland and the UK. 

To date, Goodman has delivered more than 1 million sqm of built-to-suit logistics space for the online retail giant across Europe.

All spaces leased by Amazon are managed and maintained by Goodman. They are kept in optimal condition to ensure they continue to add real value to the business. 

Amazon's requirements

  • Flexible, bespoke design with possibilities for expansion and upgrades 
  •  Specific internal layout for optimised operations 
  •  Sustainable features support Amazon’s Earth Kaizen’s programme: 
    • Latest materials, technologies and processes  
    • Consumption and waste reduction 
  •  Rapid delivery to cater to seasonality of business  
  •  Large volume to stock entire inventory 
  •  Close to efficient transport infrastructure 
  •  Proximity to large labour force 
  •  Easy access by public transport

Features

A new typology: the modern e-commerce facility 

Efficiency is key to successful online sales. Each Amazon facility is designed to ensure that items are delivered, sorted, picked, packed and distributed to customers in the most cost- and time-efficient manner. 
Amazon’s goal is to continue to improve on layout, technology and operations in order to build ever-more efficient facilities.

  • Ample parking and public transportation links accommodate a large workforce
  • White-painted concrete structure to reflect light 
  • Huge, flexible mezzanine for efficient processing of inbound and outbound products
  • Flexible HVAC system including heat recovery and heat pump technology
  • Energy-efficient LED lighting
  • Vertical light bands increase daylight
  • Latest materials and technologies

Goodman solution

Tailor-made logistics facilities and high-tech solutions

The tailor-made logistics facilities are large enough to process Amazon’s extensive product range in each country, as well as the third parties for which it provides fulfillment services. 
They employ the most advanced materials and technologies and are designed to meet the specific needs of the world’s biggest online store.

Amazon locations across Europe

  • France: 4 locations - 196,000 sqm
  • Germany: 7 locations - 694,700 sqm 
  • Poland: 1 location - 123,469 sqm
  • UK: 1 location - 75,068 sqm


Results

Goodman has developed more than 1 million sqm for Amazon since 2006 - equivalent to 200 soccer fields

This has enabled the world’s largest online store to:

  • Sustain its growth ambitions
  • Expand its fulfillment capability with built-to-suit facilities
  •  Introduce new value-adding services
  • Get closer to its customers 
  • Lower transportation costs 
  • Shorten delivery deadlines

Together, Goodman and Amazon have developed an e-commerce property solution that meets all the criteria for a precision-built distribution centre, always close to transport infrastructure so that products can be collected, sorted, stored and delivered in the most cost-efficient way possible.

"Working with Goodman was incredibly exciting as there are very few partners who could do what Goodman has done."

Timothy Collins, Director European Operations for Amazon