A helping hand towards better processes
At HHM – Port of Hamburg Marketing, our Project Department is engaged in European projects that support further development ...
Interior view of the OTTO headquarters in Hamburg.
© OTTO
© OTTO
On Course for Progress
Logistics is a vital factor in successful e-commerce. Shipping plays a key role in goods logistics at OTTO's largest German online shop. It enables the company to offer customers an ever-expanding selection of products, ensure punctual deliveries and fulfil its social responsibility at the same time.
With a portfolio of over 18 million items, OTTO provides its approximately 12 million active customers with a wide variety of products. Individual segments range from fashion and furniture to consumer electronics, DIY products and much more. The Hamburg location is an integral part of OTTO’s DNA and a home to its approximately 6,000 employees. Just recently, in 2024 – the year of its 75th anniversary – the
company made a strong commitment to Hamburg as a business location by opening its new company headquarters.
New work at the heart of the hanseatic city
Covering 40,000 square metres in total – roughly equivalent to five football pitches – the new headquarters has a desk-sharing policy that provides space for around 3,000 employees. The former logistics building was converted into a New Work facility over a five-year renovation period – at the heart of the Otto Group Campus in Hamburg-Bramfeld. The Campus has around 186,000 square metres of space for 27 buildings. A global operator and parent to the e-commerce platform, the Otto Group also orchestrates the activities of its roughly 30 international companies from this site. OTTO has remained true to its headquarters not only for historical reasons, but also due to its proximity to the Port of Hamburg. As a hub for global trade, it is a vital cog in the e-commerce company’s operations. After all: the continuously expanding portfolio with increasingly international supply chains places high demands on the logistics systems at the former catalogue mail order company.
International goods logistics
OTTO has developed steadily over recent years. On the one hand, the company uses its hybrid platform to sell goods from its own retail business. These include own brands as well as licensed brands, many of them from international sources. Adding to this are the ranges offered by the approximately 6,500 marketplace partners. This means that shipping is more than just a logistical necessity, but also a key to OTTO's success in global trade, explains OTTO Logistics Manager Malte Lübbers: "Container shipping in particular is vital to us due to the sheer size of the vessels and terminals, the complexity of our goods flows and the intricate dependencies.” He emphasises that this form of shipping is not only essential for global trade, but also promotes exchange with other continents and cultures. "With its tradition as a port and shipping centre, you notice the strength of this connection in Hamburg especially”, Lübbers adds.
„Container shipping in particular is
vital to us due to the sheer size of the
vessels and terminals, the complexity
of our goods flows and the intricate
dependencies.“
Malte Lübbers,
Logistics Manager at OTTO
Strong supply chains – even in stormy waters
Shipping enables OTTO to source products from all over the world and maintain international partnerships with suppliers and logistics companies. These relationships are crucial to ensuring continuous availability of products and streamlining the efficiency of logistics processes. But they also strengthen the resilience and reliability of supply chains – especially in times of geopolitical tension. “It is essential that we build trusting relationships with our partners and suppliers”, explains Malte Lübbers. “Close collaboration and regular communication enable us to identify potential risks and deploy solutions at an early stage." OTTO is also investing constantly in modern IT solutions to leverage supply chain transparency and ensure compliance with ESG standards.
The OTTO partner GoodShipping replaces marine diesel with biofuels.
© Goodshipping
© Goodshipping
Maritime transport as a greener alternative
Logistics specialists at OTTO are shifting the focus to maritime transport for ecological reasons. Sustainability has always been a mainstay in the company’s operations. Michael Otto, current Chairman of the Supervisory Board, defined environmental protection as a corporate goal as far back as 1986, adding reduction of CO2 emissions in 2007. Since then OTTO has set itself increasingly ambitious targets to make a positive contribution to climate protection. The company attaches particular importance to organising its logistics in line with sustainability factors.
Sophie Hering, Sustainability Multiplier Climate & Logistics at OTTO, explains: “Sustainable procurement logistics are vital, as some of the products offered by OTTO come from Asia and elsewhere. This has prompted us to slash our air freight share to below two percent. Our main focus is on maritime cargo: We transport around seven out of ten items by seagoing vessel.” Container shipping accounts for over 80 percent of all long-haul transports." Sea freight is the most carbon-efficient mode of transport compared to transports by air or rail.
The OTTO subsidiary Hermes delivers its goods with zero emissions in Hamburg.
© Hermes / Willing-Holtz
© Hermes / Willing-Holtz
Seasonal items are the only exception. Here, OTTO must respond very quickly to increased demand, so they will continue to be transported as air freight, but at a very low rate of less than two percent. After all: if, for instance, demand for bikinis were to rise precipitously in summer, it would take at least six weeks to ship them by sea – by which time the bathing season would be long over. OTTO has also been working with GoodShipping since early 2023. The Dutch company is replacing conventional marine diesel in container ships with biofuels obtained from various waste streams such as used cooking oil. “Carbon emissions from biofuels are 80 to 90 percent lower than those attributable to conventional marine diesel”, adds Sophie Hering. In the 2024/2025 fiscal year, this collaboration enabled OTTO to replace an amount of fuel responsible for 25 percent of emissions with biofuels.
Commitment to the decarbonisation of shipping
OTTO also joined ZEMBA in February 2024 to make long-term investments in zero-emission fuels. ZEMBA (Zero Emission Maritime Buyers Alliance) is a group of cargo owners who are committed to accelerating the commercial adoption of zero-emission container shipping by procuring carbon-neutral maritime transport services. The vision: decarbonised shipping (zero-emission shipping) should have become the standard by 2040. After all: the shipping industry currently emits one billion tonnes of emissions every year – equivalent to the amount produced by the whole of Japan.
„Our main focus is on
maritime cargo: We transport
around seven out of ten items
by seagoing vessel“
Sophie Hering,
Sustainability Multiplier Climate & Logistics
at OTTO
From the high seas to the ‘last mile’
OTTO is also continuously developing its workflows for the delivery of goods to customers. Its own logistics partner is managing more and more consignments emission-free on the 'last mile': since the end of 2023, Hermes Germany has been delivering parcels and packages throughout Hamburg without local carbon emissions. The company currently operates a fleet of around 176 e-vehicles and eight cargo bikes. This is the first time that the parcel logistics provider has opted for fully electric delivery in a metropolitan region with millions of inhabitants and even in an entire federal state. Hermes Germany aims to deliver shipments in 80 German city centres with zero local emissions by the end of 2025.
OTTO’s packaging is also breaking fresh ground: for example, 100 percent of shipping pouches with the OTTO logo are already made from recycled plastic that has been collected from nature and then processed. The company collaborates with WILDPLASTIC to help countries such as Nigeria, Vietnam and India in the disposal of waste. OTTO has also joined with the start-up traceless to develop a biodegradable alternative to plastic. The aim is to use innovative and fully compostable shipping pouches and polybags. Tests are currently ongoing on cardboard packaging made from Paludi biomass as well. The material is produced from wet meadow grasses and other ingredients obtained from rewetted moors without the loss of peat. Rewetting protects moors, which in turn absorb considerable quantities of CO2 and provide an important habitat for more biodiversity. OTTO is using this cooperation to reaffirm its continued commitment to progressive e-commerce and chart a course of sustainable and innovative development in the industry.