Cooperation at eye level

The collaboration between baumarkt direkt and Hellmann Worldwide Logistics Contract Logistic began back in early 2015 when Hellmann successfully won the tender. Initial business relationships had already been established through previous services in the transport sector, which were steadily expanded with the award of the contract logistics contract. The planning and subsequent implementation phase of the project was already characterized by an intensive and constructive exchange between the project members.

As a distance seller in the DIY segment, baumarkt direkt supplies a wide range of sales channels with a large variety of products. For Hellmann as a logistics service provider, this means having to deal with a very heterogeneous range of articles. The goods to be transported range from the smallest parts such as screws and bit sets to large goods such as awnings over five meters long, stoves or beach chairs. In total, over 8,000 different items with different storage system requirements have to be stored. One major challenge is to keep seasonal capacity peaks for certain items available on time.

Never run out of coal in summer

To make it clear: In summer, warehouse managers have to make sure that there is enough charcoal in stock, while in winter they must not run out of grit. In addition, logistics service providers must ensure that the peaks in e-commerce can be mapped in the operational warehouse business. Online business with the corresponding logistics backlog is typically characterized by particularly high volumes at the beginning of the week around public holidays. Flexibility and expertise are required to absorb such peaks. Here, Hellmann can draw on a wealth of experience regarding the challenges of warehousing in the DIY sector, which is utilized by transferring know-how to the customer.

At Star Park Halle, Hellmann handles not only the classic incoming goods handling, including checking for transport damage and quantity control, but also the quality control of incoming goods, which arrive from all over Europe as well as from South East Asia. For this purpose, the customer has drawn up detailed inspection instructions for the various product areas, which are implemented by Hellmann employees using a specially developed software application. This ensures that the end customer receives the ordered goods in perfect condition and in the appropriate quality. The inspection is followed by storage in the most suitable storage system for the item in question. The small-item range is primarily stored in a shelving system. Bicycles and palletized goods are stored in stanchion and pallet racks. Large goods and bulky items that are stored on pallets with overhang are usually moved to block storage.

Full utilization of the advantages of the multi-user approach

Hellmann's warehouse in the Star Park industrial estate in Halle an der Saale.

The dispatch of goods begins with the direct transmission of orders by baumarkt several times a day via appropriate interfaces. Following approval in the control center, the required items are picked in the various warehouse systems. The goods are then packed and loaded according to requirements and transported to their destination, the respective end customer in Germany, Austria or the Netherlands. As services are also provided for other customers at the Halle site, Hellmann can exploit the advantages of a multi-user approach when deploying personnel, so that the order peak that typically occurs on Mondays with up to 3,000 orders can be reliably picked and made ready for dispatch. Targeted control of incoming goods ensures that more staff are available for outgoing goods on Monday and that the weekend volume is processed more quickly. Furthermore, this allows the company to react reliably to seasonal trends with strong spring or fall/winter business.

The property in Star Park Halle, which was built by a real estate investor and leased by Hellmann, offers opportunities for consumer goods logistics in Germany and international target markets thanks to its excellent infrastructure. The logistics park benefits from direct access to the A14 and A9 freeways and its proximity to Europe's fifth-largest cargo airport in Leipzig/Halle, which is only 20 kilometers away. The Halle container terminal and the close connection to the rail network via the Halle freight station also contribute to the attractiveness of the location. The logistics center has a hall height of 10.5 meters and 22 loading gates.

Creating solutions to meet the requirements of the constantly growing baumarkt direkt was always a top priority for Hellmann. The main focus here is on providing additional space capacity and the most efficient handling possible. For example, a third level has already been added to the two-storey shelving system that was still in place in 2016. Double-deep rows of shelving have been installed for optimal storage and more efficient handling of bicycles. Furthermore, additional racking capacity for storing both Euro pallets and load carriers deviating from this dimension has been gradually built up. A relationship at eye level between the service provider and the customer is the basis of a functioning business model with potential for the future.

baumarktdirekt.comwww.hellmann.net/de/germany