From Space Constraints to Tripled Productivity

BageBixen.dk’s former manual warehouse had grown to around 2,000 square meters, but space had still become a constraint on the company’s continued growth. Instead of relocating its operations, BageBixen.dk chose to invest in a compact and scalable AutoStore solution from Element Logic.

The investment allowed the company to continue growing from Haderslev, Denmark, where the business is based. Today, the warehouse handles around three times as many orders per hour with the same staffing level, while the solution also provides significant available capacity for future growth. 

Space constraints became a barrier to continued growth 

BageBixen.dk sells baking and cake decorating products and as the company grew, its manual warehouse became an increasing constraint. To create the right foundation for continued growth, a new warehouse was therefore built next to the company’s existing operation, with AutoStore from Element Logic as a central part of its warehouse operations.

For a smaller SME like ours, it was obviously a very big decision to make such a significant investment. But when we started putting the numbers together and looking at the budgets, there was no doubt that if we wanted to maintain our growth rates, this was absolutely the right decision.

Michael Huus, Co-owner of BageBixen.dk

More warehouse capacity in one-quarter of the space 

One of the clearest benefits is how much more efficiently the warehouse space can be used. The previous manual warehouse covered around 2,000 square meters, while the new solution requires significantly less space. This meant BageBixen.dk could not only address its existing space constraints but also create significant capacity for future growth.

“Our AutoStore only takes up 500 square meters, and with all our products moved into the system, we still have 75 percent available capacity.” says Michael Huus, Co-owner of BageBixen.dk.

Three times as many orders with the same staffing 

Automation has also changed the efficiency of the warehouse operation. In the previous warehouse, products were picked manually. With AutoStore, the products instead come to employees at the workstation, reducing the time previously spent moving around the warehouse and locating products. For a growing e-commerce company, this means higher volumes can be handled without increasing staffing levels.

We are now handling around three times as many orders per hour with the same number of employees as we had in the old warehouse.

Michael Huus, Co-owner of BageBixen.dk

From click to picked and packed in three minutes 

Fast and accurate delivery is an important competitive factor for BageBixen.dk. With the automated order flow, the time from an order being placed to a picked shipment has been significantly reduced, allowing BageBixen.dk to get customer orders on their way faster than before.

“One of the biggest competitive factors in e-commerce is delivery time and the cost of delivery. The fastest we have seen so far is three minutes from the customer clicking to complete the purchase in our web shop to the order being picked and packed at the workstation. That means a lot to us, both now and in the future, in terms of how we serve our customers with fast delivery and getting the order right the first time.” -Michael Huus, Co-owner of BageBixen.dk.

100% reliability after one year of operation 

Before the investment, Element Logic conducted extensive data analyses of BageBixen.dk’s volumes and expected growth. The goal was to size a solution that could both handle current requirements and support future development. At the same time, system reliability was a critical consideration for BageBixen.dk.

“Before we made the leap into large-scale automation, my biggest concern was reliability. We have now been live with our AutoStore for a year, and we can confidently say that reliability has been excellent. In fact, it is at 100%”, says Michael Huus. 

The high availability, combined with the modular design, gives BageBixen.dk a robust solution that can continue operating even when individual components need to be taken out of service. 

“A year later, we are still extremely happy with this decision, and we can see on our bottom line that it has really paid off”, Huus continues.

A strategic investment that has delivered results 

BageBixen.dk’s journey shows that AutoStore is not only relevant for large companies with high warehouse volumes. For a smaller e-commerce company, automation can be a strategic way to address space constraints while creating capacity for the next phase of growth.

“What is interesting about BageBixen.dk is that they responded to their space constraints with a long-term solution that also created capacity for further growth. Making an investment of this size takes courage for a smaller company, but this case shows the value of thinking long term and investing before the need becomes urgent.” says Marcus Holmberg, Business Development Consultant, Element Logic.

The alternative is often inefficient workflows, increasing staffing costs, and limited opportunities to support continued growth. BageBixen.dk instead chose to create a strong foundation for the future. 

“That is exactly the type of development we want to help our customers achieve”, says Marcus Holmberg, Business Development Consultant at Element Logic.

Want to learn more about how Element Logic can optimize your warehouse performance?