Omnichannel Warehouse Solution for Beauty Logistics

The Omnichannel Warehouse Solution for the Douglas Group, developed by Arvato in collaboration with Knapp, revolutionizes beauty logistics by integrating B2B and B2C operations within a single, highly automated facility. Designed to address the unique challenges of the beauty industry—such as managing fragile and flammable products, handling seasonal demand surges, and accommodating a diverse and extensive SKU range (with more than 80,000 SKUs for the Douglas Group)—this transformative solution seamlessly combines intelligent automation, sustainable design, and human-centric processes.

At its heart is Europe’s most advanced 2D Shuttle System, capable of processing up to 636,782 items daily with just-in-time replenishment. The warehouse leverages AI-driven quality control systems, sustainable energy solutions, and a custom fire protection system to ensure unmatched efficiency, accuracy, and safety.

The result is a modern logistics hub that reduces lead times, enhances operational productivity, and ensures flexibility to meet customer demands during seasonal peaks like Black Friday and Christmas.

The Omnichannel Warehouse Solution sets itself apart with:

• True Omnichannel Integration: Unlike competitors that separate B2B and B2C operations, this solution integrates both, ensuring unified processes, reduced stock and greater efficiency.

• Tailored for Beauty Logistics: Designed to handle broad SKU ranges of highly complex assortments, including fragile, flammable, and temperature-sensitive products, which are often unsuited for traditional automation systems.

• Scalable Design for Future Growth: The modular architecture enables the seamless integration of new brands, markets, and future innovations, ensuring long-term adaptability. Plus it can be easily replicated in other locations using the current facility in Hamm as a blueprint.

• Innovative Fire Safety: Custom fire suppression systems allow for the safe storage of 530 tons of hazardous materials—a first in automated warehouses.

• Sustainability-First Approach: Transport distances and CO₂ emissions reduced through a central distribution model. Waste minimized with reusable, stackable B2B packaging systems.

This solution achieves significant operational gains while balancing automation with human-centric design, ensuring optimized workflows and employee satisfaction.

The Omnichannel Warehouse Solution introduces several industry-first innovations:

• Europe’s Largest 2D Shuttle System: 550 2D shuttles operate across 22 aisles and 25 levels, achieving up to 12,500 dual cycles per hour for real-time replenishment.

• AI-Powered Quality Control: Vision Recognition Plus uses machine learning and advanced camera technology to verify picking accuracy, ensuring error-free operations.

• Peak Optimization with Robotics: Pick-it-Easy robots manage seasonal demand surges by improving efficiency with every use through machine learning algorithms.

• Custom Fire Protection System: A fully tested, bespoke fire suppression system enables safe storage of record-breaking quantities of hazardous goods.

• Sustainability Innovation: The warehouse reduces energy consumption through intelligent energy recovery and operates on 100% renewable energy.

INITIAL SITUATION

Douglas Group was looking for consistent product availability across physical stores and online platforms. The trend-driven nature of the industry added pressure to maintain accurate assortments and ensure rapid access to popular items. Additionally, competition highlighted the urgency to streamline supply chains for efficiency and agility.

Previously, Douglas operated a decentralized supply chain, relying on a standalone e-commerce fulfillment center for B2C operations and five cross-docking centers supplying 400 stores across the DACH region. This model caused inefficiencies, with restocking times stretching up to 14 days, negatively impacting customer satisfaction and sales performance.

SOLUTION

In collaboration with Knapp, Arvato implemented the Omnichannel Warehouse Solution in Hamm, Germany. This facility integrates automation, sustainability, and human-centric design to meet the specific challenges of beauty logistics.

By unifying B2B and B2C fulfillment, the warehouse ensures real-time replenishment and seamless product availability. Despite challenges during the COVID-19 pandemic, the facility was completed in just two years, setting a benchmark in omnichannel logistics.

RESULTS

• Delivery Time Reduction: B2B lead times decreased from 12 to 4 days, while B2C improved from 3 to 2.5 days.

• Productivity Gains: Package output doubled to 120,000 daily, processing 450,000 units. Packing efficiency increased by 400%.

• Sustainability Impact: Centralized operations reduced transport distances and CO₂ emissions. Energy use was minimized with renewable power and energy recovery.

“Efficient logistics is one of the most important pillars for any omnichannel retailer. With the logistics center, we have reached a decisive milestone.” Sander van der Laan, CEO, Douglas Group

Read the full report here: https://drive.google.com/file/d/1pmWtl_t-zwpGT-33akPxQDAtZw23vU1h/view?usp=sharing

https://arvato.com/success-stories/douglas