HOBBII CENTRAL WAREHOUSE

December 16, 2020

Successful e-commerce comet has opened a huge new 10,000 square meter warehouse

Knitting and crocheting have become popular again. The fast-growing yarn company Hobbii.dk sells millions in yarn and has just opened a brand new, large warehouse in Greve. This is part of the company’s growth ambitions, where new technology will also help support the processes in the new warehouse.

In 2016, three young IT entrepreneurs decided to start an online yarn store. Today, Hobbii sells yarn for a three-digit million euro amount and sends out more than 1 million orders annually. In this fiscal year alone, 1.3 million packages will be shipped.

Knitting is making a comeback in a big way. Even among young people, knitting has become more popular than ever before, with the ancient craft captivating a whole new generation. Knitting and crochet have become so popular again that yarn shops have had to look for more storage space.

In early September 2020, Hobbii moved into a brand new giant warehouse in Greve of 10,000 square meters and with 12 meters to the ceiling, allowing a significant increase in capacity.

"In the warehouse, technology should provide a good experience for employees and help them in their work processes so they don't spend unnecessary time picking and shipping goods."

Stefan Andersen, Head of Specials Projects, Hobbii

MASSIVE ORDER FLOW REQUIRES EFFICIENT PROCESSES

The warehouse needs high capacity and efficient processes to handle the massive flow of orders. Every day, Hobbii sends out 5,000 parcels to knitting and crochet enthusiasts all over the world. In fact, over 80% of the orders are sent to customers abroad. Seasonal days like Black Friday and the run-up to Christmas are particularly busy, with up to 15,000 packages leaving the warehouse daily.

Hobbii has looked at the processes in the warehouse. Among other things, a packing machine has been installed that can process 6-700 orders per hour at full capacity. The packing machine automatically wraps the orders in plastic bags and attaches shipping labels, after which the package goes into a sorting cage. The machine has become a colleague and even got its own name, because work should be fun.

– In the warehouse, technology should help give employees a good experience and help them in their work processes so they don’t have to spend unnecessary time picking and shipping goods – it should be fun and it should be fast, says Stefan Andersen, Head of Special Projects at Hobbii and continues

– With our new facilities, we have better conditions, we’ve invested in better equipment, and overall it makes for a better experience for employees.

Today, Hobbii employs over 250 people, 150 of whom are employed at the new warehouse.

NEW TECHNOLOGY TO HELP EMPLOYEES

With over 13,000 item numbers in stock, there is a lot to keep track of. That’s why Hobbii uses technology to create an overview of the warehouse and maintain control.

Hobbii gets help with the technology from IT company Delfi Technologies, which has delivered an integrated warehouse solution for picking goods and efficient package handling via workstations in the warehouse. The solution includes several elements such as touch screens for full order overview, mobile phones, barcode scanners, label printers, shipping labels, etc.

The warehouse has a total of 16 packing stations where employees can get a quick overview of open orders via a touchscreen where they can see the entire order. From here they can also print shipping labels and finalize orders.

Using cell phones mounted in an arm holder, employees can move freely around the warehouse and keep an eye on orders at all times via an info screen. At the same time, employees wear special gloves with an integrated barcode scanner so they can keep their hands free as they walk around the warehouse to pick and register the goods.

AMBITIOUS GROWTH PLANS CONTINUE

The yarn store has gone from having a multi-million dollar online business to also opening physical stores. In the stores, technology must support the customer experience to create a synergy between the online store and the physical store universe.

– We want to create an inspiring and digital universe in our stores to complement our online store. Delfi Technologies helps us with that,” says Stefan Andersen.

In the stores, the focus should be on the yarn, so the interior design should be clean lines. When choosing a checkout solution to serve customers, Hobbii chose a simple and stylish solution. In addition, Delfi Technologies has also supplied electronic price tags, price/product scanners and other digital solutions for the stores.

Today Hobbii has opened stores in Roskilde, Aalborg and Odense. There will be even more to explore for those who love to knit or crochet. Hobbii is opening three new stores in 2020 and plans to open another 10-15 stores in 2021.

Every time the yarn shop opens a new store, it becomes Denmark’s largest, as more square meters are needed each time. Within three years, the company plans to open 60 new stores. The ambition is to become a nationwide chain of stores in Denmark, but the chain is also looking to Germany for new store locations.

ABOUT HOBBII

Hobbii started as an online yarn store, but is also establishing itself as a retail chain with stores throughout Denmark. Hobbii is located in Rødovre and Greve, where more than 250 dedicated employees do everything they can to become the Danes’ favorite yarn store. With over 13,000 item numbers, the range covers everything you need for your knitting or crochet project.