3 October 2024, Company News
AxFlow DC, AxFlow's European distribution center, has achieved a remarkable fivefold increase in annual orders, expanding from 10,000 to 50,000, while maintaining the same team size. Under the leadership of Managing Director, Pieter Molenaar, this impressive growth has been made possible by the implementation of a state-of-the-art automated solution from Kardex.
AxFlow, a global distributor of pumps, spare parts and other components for the process industry, has sales offices around the world. Previously, each local AxFlow company managed its own inventory. However, by centralizing inventory at its European distribution center in Lelystad, AxFlow was able to reduce overall inventory levels and improve logistics efficiency. This centralization resulted in benefits such as economies of scale, improved product availability, and a broader offering through consolidated demand.
Reflecting on the early days, Pieter Molenaar, Managing Director of AxFlow DC, said: "In 2008, our first suppliers embraced the concept. Instead of shipping directly to each sales office, everything was consolidated at our DC in Lelystad. At that time, the warehouse consisted of shelves with bins, and we handled 10,000 orders in the first year. It worked well for its size. But growth came quickly, and more and more suppliers approached us to manage their shipping through the AxFlow DC".
The End of Traditional Storage at AxFlow
The scalability of the traditional AxFlow DC warehouse was limited. By 2018, when the number of annual orders reached 20,000, it was clear that further expansion was not possible with the existing methods. The solution was vertical storage technology. In 2018, AxFlow DC implemented three Kardex Shuttles and a put-to-light shelving system. Shortly thereafter, the company expanded its pallet warehouse by integrating the Kardex Power Pick System software. After a recent upgrade, the facility now operates with eight Kardex Shuttles, and the previous put-to-light shelving has been replaced with flexible carts combined with the Kardex Color Pick System software. This new system allows for simultaneous inbound and outbound processing, while efficiently managing orders of varying sizes.
Pieter Molenaar, Managing Director of AxFlow DC, explains the decision: "This solution gave us three key benefits: space savings, complete inventory control and faster picking. Most importantly, the Kardex pre-storage system significantly accelerated the processing of incoming goods. Saving space was essential. By storing items more compactly and using vertical lifts, we maximized our warehouse capacity". When we first installed the system in 2018, adding additional shelving was not feasible due to space constraints in the building.
By moving smaller items into the Kardex system, additional space was freed up for pallet storage, further optimizing warehouse efficiency.
From Pseudo-FIFO to Assurance
Though AxFlow DC primarily deals with pumps and metal parts, shelf life is an important factor, particularly for rubber components, which are perishable. To manage these items, AxFlow adheres to the FIFO (First-In, First-Out) principle.
Pieter Molenaar reflects on the previous system: “We used to rely entirely on our staff to manually follow the FIFO protocols. Even with the best intentions, human error is inevitable, resulting in what we called a pseudo-FIFO system. Today, all inventory is tracked digitally, and we conduct zero-counts during picking to verify stock levels. This ensures accuracy and greatly reduces errors.”
Achieving More with the Same Team
One of the key factors in AxFlow DC’s success has been the introduction of a new order-picking method. The process is now significantly faster, as employees no longer have to walk long distances throughout the warehouse. “The decision was simple,” says Pieter. “We could either install three Kardex units or hire four additional staff. We chose the more efficient option, and it has allowed us to scale operations without expanding the team.”
About AxFlow
AxFlow is the exclusive representative of leading manufacturers of high-quality positive displacement pumps, agitators, dosing equipment, valves & actuators, analytical instruments, and complete systems in Europe. Since 1989, the AxFlow Group has been serving market segments such as food, chemicals, petrochemicals, pharmaceuticals, and (waste)water treatment. In short, AxFlow provides solutions for any process involving the handling of liquids.
About Kardex
Kardex is a leading global partner for intralogistics solutions in an attractive and growing market. The group offers premium automated products, standardized systems and lifecycle services that guarantee high availability and low total cost of ownership. Kardex provides an intelligent entry into automation with its dynamic storage and retrieval systems, offers integrated material handling systems, small parts storage systems and automated high-bay warehouses and acts as a global AutoStoreTM partner, offering flexible and modular storage and order fulfillment solutions. The group employs around 2,500 people in over 30 countries. Kardex Holding AG has been listed on the SIX Swiss Exchange since 1989.
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