Successful e-commerce comet has opened new giant 10,000 square meters warehouse
It has become popular to knit and crochet again. The fast-growing yarn company Hobbii.dk sells yarn for millions and has just opened a brand new and large warehouse in Greve, Denmark. This is part of growth ambitions, where new technology also must help to support the processes in the new warehouse.
In 2016, three young IT entrepreneurs decided to start an online yarn business. Today, Hobbii sells yarn for a triple-digit million amount and sends out more than 1 million orders annually. In this financial year alone, it will be 1.3 million packages.
Knitting has definitely been rediscovered. Even among young people, knitting has become popular like never before, where the old craft has captivated a whole new generation. It has become so popular to knit and crochet again that the yarn store had to look around for more warehouse space.
At the beginning of September 2020, Hobbii was able to move into a brand-new giant 10.000 square meters warehouse in Greve with 12 meters to the ceiling, which allows a significant increase in capacity.
"In the warehouse, technology must help to give employees a good experience and help them in their work processes, so that they do not have to spend unnecessary time picking and sending goods."
MASSIVE ORDER FLOW REQUIRES EFFICIENT PROCESSES
The warehouse needs a high capacity and efficient processes to handle the massive order flow. Every day, Hobbii sends 5,000 packages to knitting and crochet-happy customers all over the world. In fact, over 80 percent of the orders are sent to customers abroad. On seasonal days like Black Friday, and up until Christmas, the warehouse is extra busy, Here, up to 15,000 packages leave the warehouse on a daily basis.
Hobbii has looked at the processes in the warehouse. Among other things, a packaging machine has been installed, which can make 6-700 orders per hour with full capacity. The packing machine automatically wraps the orders into plastic bags and attaches a shipping label, after which the package is moved to a sorting cage. The machine has become one of the colleagues and has even got its own name because it should be fun to go to work.
– In the warehouse, technology must help to give employees a good experience and help them in their work processes, so that they do not have to spend unnecessary time picking and sending goods – it must be fun and it must go fast, says Stefan Andersen, who is Head of Special Projects at Hobbii and continues:
– Thanks to our new facilities, we have better conditions, we have invested in better equipment, and overall, it provides a better experience for employees.
Today, more than 250 employees are employed at Hobbii, of which 150 are employed at the new warehouse.
NEW TECHNOLOGY MUST HELP EMPLOYEES
With over 13,000 item numbers in stock, there is a lot to keep track of. Therefore, Hobbii uses technology to create an overview of the warehouse and maintain control.
The technology is provided to Hobbii by the IT company Delfi Technologies, which has provided an integrated warehousing solution for picking goods and efficient parcel handling via workstations in the warehouse. The solution includes several elements such as touch screens for a full order overview, mobile phones, barcode scanners, label printers, freight labels, etc.
In the warehouse, there are a total of 16 packing stations, from which employees can get a quick overview of open orders via a touch screen, where they can see the entire order. From here, they can also print shipping labels and complete the orders.
With the help of mobile phones, mounted in an armrest, employees can freely move around in the warehouse and have always the order lines with them via an info screen. At the same time, employees use special gloves with an integrated barcode scanner, so they can have their hands free when walking around in the warehouse to pick and register the goods.
AMBITIOUS GROWTH PLANS CONTINUE
The yarn business has gone from not just having a million-dollar business online, to also opening physical stores. In the stores, technology must help to 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, which should be a complement to our online store. Delfi Technologies helps us with that, says Stefan Andersen.
In the shops, there must be a focus on the yarn, and the decor must therefore be with clean lines. When choosing a cash register solution to serve customers, Hobbii chose a simple and stylish solution. Delfi Technologies has also delivered electronic shelf labels, price/product scanners, and other digital solutions to 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 will open three new stores in 2020 and plans to open another 10-15 stores in 2021.
Every time the yarn store 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 store chain in Denmark, but the chain is also looking into Germany when it comes to finding new store premises.
Hobbii started as an online yarn store, but is also in the process of establishing itself as a store chain with stores throughout Denmark. Hobbii is located in Rødovre and in Greve, where more than 250 dedicated employees do everything they can to become the Danes’ favorite yarn shop. With over 13,000 item numbers, the range covers everything you need for your knitting or crochet project.
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