Season 8, Post 16: Germany’s greenest warehouse

Few people get to stand on the roof of a warehouse, let alone one which boasts a wild garden. Your author, however, had the privilege of doing so recently. Located some 60km north of Dusseldorf and operated by GXO Logistics on behalf of a major retailer, the structure bills itself as “Germany’s greenest warehouse.” The trip also served as an important reminder of why warehouses are a critical node in modern supply chains today.

Supply chains are becoming increasingly complex, as we have argued previously. A combination of heightened consumer expectations, constrained capacity and geopolitical considerations have pushed the issue up boardroom agendas. At the same time, technology – AI, automation and robots (sometimes of the humanoid kind) – can be a major lever for driving cost savings. Leading players in outsourced contract logistics, such as GXO, clearly look well-placed.

Statistics were shared with us that showed how outsourcing and implementing technological solutions could provide meaningful reductions in variable costs as well as improvements in order accuracy and markedly lower inventory wastage. All the above should be structurally margin accretive for customers. Dynamics such as these were part of the reason why the retailer whose warehouse we visited decided to consolidate several of its operations under one site and then outsource the management to a third party.

It was hard not to be impressed by the sheer scale of the venue, which comprises 65,000 square metres of storage space. Around 5m items are stored on site across a vast racking system through which automated trolleys move seamlessly. At peak, over 200,000 packages can leave the building daily. The warehouse itself was a cathedral of light – bright and spacious. It has a LEED Platinum Certification, has achieved carbon neutrality and produces zero waste. There is also the roof garden to enjoy – a small but telling symbol of how sustainability and efficiency increasingly go hand in hand.

7 May 2026

The above is provided for information purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Any forward looking statements are based on assumptions that may change. The views expressed are solely those of the author at the time of writing. Heptagon Capital is an investor in GXO Logistics. The author of this piece has no personal direct investment in the business. This article should not be relied upon for investment decisions. Past performance does not predict future returns, the value of investments and income from them can fall as well as rise.

Photo by the author