Warehouse selection and momentum
HBM is a Netherlands-based tools brand, offering a broad range of products from large workbenches and storage systems to small tools and accessories, sold through both B2B and B2C channels. All European distribution runs from a single central warehouse in the Netherlands.
Challenge
HBM has been growing strongly and expects this growth to continue, driven both by expansion into new European markets and by continued growth within existing markets. As a result, order volumes were increasingly outgrowing the capacity of the single Dutch warehouse. HBM asked 4Supplychain to determine where a second European warehouse should be located, and when opening it would become the most cost-effective step.
Solution and deliverables
4Supplychain supported HBM in answering both the location and the timing question through a structured, data-driven network study:
Delivered an cost overview dashboard presenting total and detailed costs per scenario and per year, to support management decision-making
Built a model, using current order data and volume forecasts per country, to identify the optimal region for a second European warehouse alongside the existing Dutch distribution centre using Loghub
Developed a detailed cost model for distinct order flows covering inbound, storage, picking, and outbound costs, calibrated against the actual cost base together with the operations team
Identified a large, easily outsourceable flow representing a significant share of current pallet positions, offering a fast way to free up capacity in the existing warehouse
Quantified multiple scenarios, from outsourcing this flow only, to adding a second warehouse in France for Southern-European flows — with costs projected per quarter through 2028 based on HBM’s growth scenarios
Applied an iterative optimisation logic to allocate flows between the Dutch and French warehouse in the way that minimises combined warehousing and distribution cost, including the productivity impact and capacity constraint of an increasingly full Dutch warehouse.
