Business news : Skechers Upgrades European Distribution Center

Michael Greenberg (left), president of Skechers USA Inc.

Skechers USA, Inc. announced a major investment and technology upgrade to its European Distribution Centre in Milmort that will improve performance and prepare the facility for future expansion plans.


The centrepiece of this upgrade is an automated order-picking system that will more efficiently manage the Company's business. This investment will consolidate positions at the EDC and the employment in the area of Liege, as Skechers is one of the main logistical sector employers in the region.

The Skechers EDC was inaugurated in 2002 over a surface area of 21,000 m(2). At the time, it employed only three people and a number of temporary workers, depending on the periods of peak and off-peak activity. The continued growth of Skechers on the European market resulted in an extension of the building in 2009 with 23,000 m(2) of additional space. In 2013, the volumes of goods have been four times higher than in 2002 and the employment increased up to 150 full-time equivalents.

The Skechers EDC receives goods coming from China via the port of Antwerp. The goods are then stored at the EDC until they are redistributed to European markets. The customers of the EDC are local distributors, Skechers stores (of which there are 29 in Europe) and specialised chains that choose to receive their deliveries either at their own regional distribution centres or directly at individual stores.

An investment for the future

The work of preparing orders for each customer consists of selecting the number of pairs ordered according to a triple specification of style / colour / size. Presently, this process is manual: the operator must navigate the 45,000 m(2) of shelves and pull the merchandise to be shipped.

This manual working method is no longer appropriate for the growing volumes that the EDC is handling now, and expects to continue to process. "We have hit a ceiling in terms of productivity," said Sophie Houtmeyers, Skechers EDC Vice President Distribution Operations. "We will reorganise the two existing buildings with an automated sorting system in order to increase the storage capacity with narrow aisles and manage the picking and packing of footwear. This automated system is largely inspired by what Skechers developed in its new North American distribution centre in Rancho Belago, California."

Together with Wynright, the Company's logistics integrator, Skechers will install a sorting and shipping system that will be linked together by conveyor belts. Pairs will be grouped at packing stations into final shipping cartons and conveyor belts will transport each carton between operational departments. Once the order is completed (which may require an additional label specific to the customer) it is palletised and ready to ship.

A new foundation for expansion

The investment in this installation increases the productivity of the EDC, a necessary change as the Company continues to grow in Europe, and plans for future growth in the region. This will also provide for the improvements needed as the Company establishes its e-commerce business in several key European countries.

Above all, this upgrade shows a sign of trust from Skechers in Liege as an operations hub. "Thanks to the efforts of our personnel, we have achieved very good results in terms of the flexibility and reliability of the deliveries to customers, and this investment will allow us to expand our operations and utilize a skilled workforce in the execution of our European logistics operations," said Houtmeyers.

Real perspectives for expanding Skechers EDC (European Distribution Centre) operations are possible in the medium term. An 8-hectare plot of land located behind the existing centre has already been the subject to a call option.