Building an intelligent end-to-end logistics network to support citizenM’s international expansion.
LET’S SET THE SCENE
citizenM is a global hotel brand redefining affordable luxury for modern travelers. Since opening its first hotel in Amsterdam in 2008, citizenM has expanded to some of the world’s most vibrant cities, offering a seamless blend of style, comfort and technology. With a focus on delivering luxury experiences at accessible price points, citizenM is dedicated to inspiring a new generation of savvy travelers who crave convenience and comfort without compromise.
THE HIGHLIGHTS
-
Scaled logistics efficiently across continents
-
Reduced inventory costs and improved availability
-
Automated and simplified logistics and procurement
-
Improved delivery precision to meet operational needs
-
Supported rapid global expansion with a future-proof logistics model
THE CHALLENGE
As citizenM continued its rapid expansion across Europe, the U.S. and Asia, the brand encountered several logistical and supply chain challenges that required a specialized solution. Their fully integrated approach to hotel development—spanning acquisition, investment, design, procurement, construction and operations—meant they needed a warehousing and logistics partner capable of scaling alongside them.
Key challenges included:
- Global Supply Chain Complexity – With hotels opening in multiple regions, citizenM needed a logistics provider with an international reach that could manage inbound freight, customs compliance, warehousing and delivery seamlessly across continents.
- Supplier Order Management – Coordinating and managing supplier orders efficiently was a priority, ensuring that each hotel received the necessary items in a timely manner.
- Inbound Freight Across Multiple Territories – citizenM required support in managing inbound freight from global suppliers into key markets, particularly Europe and the U.S. They needed a logistics partner with the capability to handle customs clearance, storage and onward distribution.
- Integrated Digital Solutions – A key requirement was a web shop integrated into citizenM’s ERP system, allowing hotel teams to place stock orders easily.
- Logistics & On-Time Fulfilment – citizenM needed a robust logistics network to ensure timely deliveries to difficult-to-reach hotels, preventing operational disruptions.
- Pre-Financing & Invoicing Complexity – Managing costs across multiple properties while ensuring accurate invoicing and cost allocation was a challenge. citizenM sought a partner that could streamline this process, reducing administrative burdens.
- Hotel Launch Projects - With an aggressive growth strategy in place, citizenM needed a supplier who could help manage multiple new hotel projects per year, including PO management, supply chain management and kitting into ‘Room in a Box’ consignments to streamline new property implementation.
THE SOLUTION
To address citizenM’ s global supply chain challenges and support their rapid expansion, SEKO implemented a comprehensive 5PL solution, acting as a centralized control tower from its Windsor, UK office. This solution ensured seamless logistics management across North America and Europe, optimizing citizenM’s operations from procurement to last mile deliveries while driving value across the supply chain.
Key elements of SEKO's solution:
Global Supply Chain Control & Demand Planning
- SEKO established a control tower in Windsor to oversee and manage citizenM’s entire supply chain across multiple territories.
- Using advanced technology and AI-driven demand planning, SEKO assessed inventory levels worldwide, ensuring optimal stock availability while reducing cash flow pressures and target of cutting inventory holdings by up to 15%.
- The demand planning system transitions from a push model (manual input) to a pull model, where AI automatically suggests purchase orders based on forecasted demand, when stock reaches prescribed buffer levels. The final sign-off on purchase order (PO) submission requires manual approval.
Automated Inbound Freight Management
- SEKO took full control of inbound freight from origin to warehouse, handling PO raise, supplier coordination, shipment consolidation and customs clearance.
- Automated workflows ensured seamless processing—from purchase order creation to shipping order issuance and Advance Shipment Notice (ASN) generation—minimizing manual intervention and driving value.
Supply Chain Orchestrator
- Warehouses were strategically positioned in Rotterdam (Europe) and New Jersey (U.S.) to support citizenM’s key markets.
- Facilities were chosen with the ability to flex space up and down, depending on the demand levels citizenM has at any given time.
Last Mile Deliveries
- SEKO provided specialist last mile delivery solutions, ensuring orders arrived at hotels on time and with the correct handling requirements.
- Deliveries were optimized for urban environments, utilizing a consolidation delivery plan to drive efficiency, tail lifts and other specialist equipment to meet strict hotel delivery standard operating procedures (SOPs).
- SEKO has the capabilities to facilitate white glove deliveries for high value and fragile items, such as artwork and custom furnishings.
Integrated Digital Solutions & Webshop Implementation
- SEKO developed a website as well as a Shopify Plus-powered webshop, integrated with citizenM’s ERP system, allowing hotel teams to place orders effortlessly.
- Hotel teams across the globe could independently manage their stock needs, with orders automatically filtering through SEKO’s Warehouse Management System (WMS) and Transportation Management System (TMS) for fulfillment.
Pre-Financing & Cost Allocation
- SEKO processes and funds all inventory purchases that citizenM makes, paying for the goods on citizenM’s behalf, for a maximum of 15 days.
- While citizenM opted not to use SEKO’s full pre-financing service, SEKO provided credit terms to manage procurement costs effectively.
- The system ensured accurate invoicing and cost allocation, allowing citizenM to settle payments monthly, minimizing administrative burden.
Hotel Launch Support & Kitting Services
- SEKO provided kitting services for new hotel openings, assembling pre-packaged “Room in a Box” kits containing all the essential items for each hotel room.
- SEKO creates thorough logistics plans six months in advance of hotel launches, ensuring all materials arrive on-site at the right time to support seamless hotel construction and setup.
Future Developments: Asset Management
- SEKO and citizenM are exploring additional asset management solutions to track and maintain high value electronics and furnishings across properties.
THE RESULT
By implementing this fully integrated, centralized supply chain solution, SEKO has enabled citizenM to:
- Scale efficiently across multiple continents.
- Drive value across the supply chain.
- Reduce inventory holding costs while ensuring product availability.
- Automate and streamline PO management, inbound logistics and order fulfilment.
- Enhance last mile delivery precision, meeting strict hotel SOPs.
- Simplify procurement and cost allocation through integrated digital solutions.
SEKO’s tailored approach has transformed citizenM’ s supply chain, ensuring a future-proof logistics model that supports their global expansion while maintaining operational efficiency, proving that SEKO is Big Enough to Scale, Small Enough to Care.
ANY QUESTIONS, WE CAN HELP – HERE’S JUST A FEW WE RECEIVE REGULARLY
- What locations do you serve?
We empower you to scale into every core market, with 150+ offices and counting.
- Can you ship what I need to ship?
No matter how specialist or time-critical your request, we can handle it all.
- How much will it cost me?
No two shipments are the same, so inquire today for an exact quote.
Please complete the form below and we’ll be back in touch soon!
