As part of its business strategy to further develop its northern European retail operations, H&M had built a central distribution hub in Hamburg, Germany. The site took 2 years to build, employs 1,000 people and has an operating area of 125,000 square metres or 1,250,000 sq. ft.
Pierau Planung GmbH, the parent company of Pierau Logistics Ltd were contracted by H&M to review their logistics processes and make recommendations to increase productivity and improve efficiency in the main areas of operation. Particular attention was to be paid to the stock and reserve areas. In addition H&M wanted a solution for processing both flat and hanging garments.
Pierau Planung resolved the storage issue by planning and supervising the introduction of a mini load system for fast moving items and by adding high bay racking for 50,000 pallet locations. The garment issue was resolved by introducing an automated hanging garment system.
The site today has a capacity to process more than 500 million items per annum.