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Ahlsell transforms customer service and product delivery with flexible warehousing model
Data Sheet
Making life easier for trade professionals
Industry
Construction tools and materials
Challenge
Ahlsell was looking to improve supply chain operations and logistics but had limited space at its central warehouse in Sweden
Solution
Iron Mountain® warehousing allows more goods to be stored for longer periods than before, guaranteeing service levels and deliveries
Value
- Guaranteed storage for 3,400 pallets
- More efficient operations with less handling
- Easier to achieve next workday delivery target
- Improved stock control and purchasing
Nordic market leader
Ahlsell excels in supply chain management and logistics. As the Nordic region’s leading distributor of installation products, tools, and supplies for trade professionals, it has some 7,500 employees, 300-plus stores, a well-developed e-commerce platform, and three central warehouses in Sweden, Norway and Finland.
“Our warehouses combined store around 118,000 products and deliver next working day to 100,000 customers, which includes Ahlsell stores, specialized building, electrical and plumbing centers, and directly to select consumers,” says Hanna Larsson, Supply Chain Developer at Ahlsell.
Maintaining high standards
Ushered in by the pandemic, tough supply chain challenges like port closures and container shortages had a profound impact on the company’s warehouse in Hallsberg, Sweden.
“It became harder to maintain our usual high standards and service levels,” adds Larsson. “We needed more storage space to stock more goods and keep up with demand. In the short term it wasn’t possible to build that extra capacity ourselves. We quickly had to find a dependable warehousing partner.”
The difference now is we can keep goods for longer periods than if they were stored at our own warehouse, guaranteeing service levels and deliveries
Security and ISO certifications
After evaluating several providers, Ahlsell saw clear advantages in partnering with Iron Mountain®.
“Geographically their warehouse was close to ours, which helps keep transport costs down,” says Larsson. “We were impressed with Iron Mountain’s fast response and their robust processes for handling goods, billing, and so on. And it was reassuring to know they held the highest security and ISO certifications.”
Storing more goods for longer
Ahlsell staff initially receive goods and optimize storage at the Hallsberg warehouse, before deciding which surplus products to transfer. Iron Mountain staff then register all incoming products. When Ahlsell needs a delivery, it submits a request two days prior so the pallets can be prepared for collection.
“We aim to move goods around as little as possible and usually drop off every other week,” explains Patrik Bäck, Production Developer at Ahlsell. “The difference now is we can keep more goods for longer periods than if they were stored at our own warehouse, guaranteeing service levels and deliveries.”
Strategic buffer
Importantly, Ahlsell now has the strategic buffer it was missing. Providing certainty of storage for up to 3,400 pallets, the solution also includes commitments from Iron Mountain for increasing and decreasing capacity.
“We’re able to offer a higher level of service and make sure the customer gets the right items, at the right time,” adds Bäck.
Working smarter and efficiently
With more space now available at the Hallsberg warehouse Ahlsell staff find it easier to place goods in the correct place, first time. The end result is faster storage and retrieval with reduced handling. In addition, Ahlsell can more clearly monitor stock levels and optimize purchasing patterns.
Larsson concludes: “We feel safe with Iron Mountain. We’re very satisfied and can see things are working better.”
We’re able to offer a higher level of service and make sure the customer gets the right items, at the right time.
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