Bent Brandt
Form or function
3 min read
Builds Large New Logistics Centre in Kolding
September 2021
A logistics analysis leads to a significant shift in logistics strategy for Schou Company, one of Denmark’s largest, non-food suppliers. A new 100,000 m² logistics centre will ensure future growth and improved profitability.
Schou Company is consolidating its logistics operations into a new centre in Kolding, set to be completed in 2023.
A thorough logistics analysis of the business revealed that both growth and Schou’s competitiveness - now and in the future - required a strategic change of direction. While there were opportunities for optimising within existing frameworks, the long-term solution was to build a brand-new, large-scale logistics centre to centralise operations. Through modern handling processes, a streamlined product range, and an efficient supply chain, Schou expects to improve its operations by a significant annual sum while also handling projected annual growth.
At the same time, the analysis confirmed that the Triangle Region (Trekantområdet) is an ideal distribution hub for Schou’s customers.
‘In 2019, we found ourselves at a crossroads regarding logistics strategy and sought external guidance,’ says Rune Skou Raun, Supply Chain Director at Schou Company, and continues:
‘Everyone in our network pointed to Langebæk as having both the strategic and operational expertise to tackle the challenges we faced - first with analyses and then with the implementation of our strategy.’
Langebæk began analysing Schou’s business in 2019, focusing on its two Danish logistics centres. The analysis provided the board with valuable insights, prompting further exploration of additional possibilities. By late 2019, the board had reached a decisive conclusion: Securing future growth and profitability required the construction of an entirely new logistics centre in Kolding.
Bringing Multiple Locations under One Roof
With this decision, Schou’s logistics operations will be consolidated from several warehouses into a single, streamlined setup.
The new logistics centre will cover a total of 100,000 square metres, including a fully automated high-bay warehouse of 5,500 m², standing 42 metres tall and accommodating 40,000 pallet spaces. This will be integrated with an optimised campaign area. The remainder of the facility will consist of a manual warehouse, 15 metres in height, with approximately 85,000 pallet spaces - bringing the total storage capacity to around 125,000 pallets.
With its 42-metre height, the high-bay warehouse will be a prominent landmark visible from the motorway, offering Schou excellent brand exposure.
By 2023, approximately 3,400 pallets will be moving in and out of Schou’s logistics centre daily, servicing its customers.
Initially, Schou plans to lease out part of the space. The new logistics centre has been built with future growth in mind, meaning the company will not immediately require the full capacity.
Langebæk has also been engaged as a consultant and project manager, overseeing both the selection and setup of internal logistics solutions for both the fully automated high-bay warehouse and the manual warehouse. The high-bay warehouse and its automation system are being developed by SSI Schäfer, while Daugaard Petersen is responsible for the construction of the manual warehouse. The building consultancy is provided by AK83.
Optimised for Schou’s Needs
‘Schou is getting a logistics centre tailored to its specific needs - optimised to handle continued growth and increasing logistical complexity,’ says John Carstens, Partner at Langebæk. He continues:
‘It has been and continues to be an excellent project, characterised by open collaboration, ensuring a solid decision-making foundation. Data is crucial in modern logistics, especially obtaining the right data - and we successfully achieved that.’
‘We also benefited from drawing on extensive knowledge gained from similar projects across the Nordic region. Although Schou will incur slightly higher transport costs, the advantages of consolidating logistics operations and the resulting efficiencies far outweigh this. Strategically, it is the right move.’
Several consultants from Langebæk have been involved throughout the project.
‘Langebæk keeps the customer at the centre of everything,’ says Rune Skou Raun, adding:
‘We experienced a hands-on approach to project management and follow-ups. Thanks to their scale, they could bring in specialists for different aspects of the project, which provided a great sense of security.’
‘A particularly positive aspect was their adaptability. As we shifted directions within the project and the scope evolved, they remained open-minded and proactive throughout.’
One of the most critical aspects of Langebæk’s logistics analysis was evaluating different scenarios and forecasting developments across various product categories. Over four years, Schou anticipates a 22% increase in turnover but a 37% rise in volume. Products like garden furniture are growing faster than hand tools, impacting cost structures and storage requirements.
To conduct the necessary data analyses and support informed decision-making, extensive work was done to create and validate a reliable data foundation.
‘It was crucial to establish a common understanding of the actual situation. This process took several months, but the better the data, the better the outcome. We now have a solid data foundation that will support us in the future,’ says Rune Skou Raun.
Following the centre’s launch, Langebæk will continue monitoring workflow and tracking results. In addition to the physical infrastructure, significant effort has gone into ensuring that the logistics IT setup functions seamlessly, integrating both automated and manual warehouse operations and ensuring efficient data exchange between various systems.
Schou will move into its new logistics centre in Kolding in 2023.
About Schou
Schou is the Nordic region’s largest non-food supplier, offering products across home, hardware, garden, bicycles, automotive, tools, and machinery. The company prides itself on its dynamic and passionate approach, maintaining a culture as open as it is ambitious - an ethos it has upheld since 1963.
Schou’s headquarters is currently in Kolding, featuring a 3,000 m² showroom. The company also operates sales offices in Norway, Sweden, Finland, and Germany, alongside a purchasing office and showroom in China. Learn more at schou.com.
In 2020, Schou Company recorded a turnover of nearly DKK 1.7 billion.
