At Kramp, we are continuously evaluating how we can optimally align our operations with evolving customer needs. One example is the major multi-year project titled Masterplan to transform the warehouse at our headquarters in Varsseveld. We asked Just Reinke, Programme Manager of 'Masterplan' Varsseveld to update us on the progress made in 2024.
In line with Kramp’s goal to serve customers better and faster, a multi-year project is underway at our warehouse in Varsseveld – the biggest in Kramp’s European supply chain network. “Besides serving a large customer base, this warehouse also receives a lot of supplier deliveries, and our ever-expanding assortment means that number is growing all the time. To improve our efficiency and keep pace with the changing requirements, we drew up a plan for upgrading the warehouse,” says Just.
Phased approach
Due to the scale and complexity of this project, the plan was divided into phases. “Thanks to completing Phase 0 in December 2023, which included improvements to the conveyor lines, we were able to guarantee business continuity while ensuring the safety of everyone involved when we moved on to executing Phase 1 in 2024,” continues Just.
One key milestone in Phase 1 was the receipt of a PGS15 permit for our dangerous goods storage building in the warehouse, making us one of the few organisations in the Netherlands with this permit. “This confirms our ongoing commitment to ensuring the highest safety standards, and enables our purchasing team to set up more efficient sourcing procedures with our suppliers,” he says.
Increased throughput capacity
Other important improvements in Phase 1 were a shuttle extension, a plan to build a dangerous-goods building and conveyor upgrades, plus the addition of four extra aisles in the goods-to-person Order Storage and Retrieval (OSR) system. “In 2018, we had six aisles that could accommodate 120,000 totes across ten one-to-one pick stations. Now, we are adding four more aisles with an extra 80,000 totes across ten two-to-four pick stations. In 2024, our suppliers built racks, installed sprinklers and initialised the software,” Just comments. One of the new aisles is now operational, and the other three are due to go live in mid-2025.
As a result, Phase 1 has already increased the throughput capacity, enabling more orders to be picked per hour. “Above all, this helps our colleagues to complete their work within their regular hours rather than having to work overtime,” he states.
Enhancing the customer experience
Kramp’s customers will really start to notice the benefits after completion of Phase 1, according to Just: “Later this year, we will install new packaging machines for cut-to-size cardboard boxes. As an extra option alongside totes, boxes will give us more flexibility to meet the needs of our customers and our carrier partners.”
At the same time, the Projects, Supply Chain Development & Excellence team are preparing for Phase 2, which will be the next step in futureproofing Kramp’s end-to-end e-commerce activities by enhancing the seamless customer experience. “The changes in Phase 2 will significantly reduce the lead time between product ordering and dispatch, enabling us to expand our overnight delivery offering,” explains Just.
“They will also enable us to consolidate multiple orders across different order groups into single shipments. This will improve our customers’ last-mile experience by reducing the number of deliveries. And this is also good from a sustainability and cost perspective, of course,” he adds.
Central storage hub for slow-movers
Once the transformation project is complete, the Varsseveld warehouse will take on an additional role as the central hub for Kramp’s global supply chain operation. “In line with Kramp’s goal to serve our customers better, faster and with greater efficiency, we have decided to make Varsseveld the central storage facility for slow-moving items. This will free up more space for fast-moving products in our local warehouses, improving their service levels to customers,” according to Just.
“Thanks to the enhanced efficiency in Varsseveld, we will be able to ship all other centralised products either to other warehouses or directly to customers throughout Europe in the desired type of packaging with very short lead times,” he states.
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