Furniture fittings and interior solutions company Häfele has opened a new distribution centre in Nagold, Germany, expanding its global logistics capabilities with increased dispatch capacity, faster order processing and greater flexibility. For India and South Asia, the investment is expected to strengthen the Häfele India supply chain by supporting greater reliability and resilience, alongside the company’s growing local distribution, sourcing and manufacturing capabilities.
The new facility, part of Häfele’s Strategy 2030 and described by the company as its largest investment to date, introduces a goods-to-person picking system and adds around 15,000 storage spaces to a hub handling approximately 6,000 shipments a day. Upgraded processes and IT systems will also allow orders received late in the working day to be processed and dispatched the same day. Products sourced for India through Häfele’s European network are expected to benefit from the greater efficiency and flexibility created by the expanded logistics infrastructure.
“A stronger global network ultimately supports the reliability and resilience of our operations across markets,” Frank Schloeder, Managing Director, Häfele South Asia, told Sourcing Hardware.
In India, the global network is complemented by four warehouses and more than 180 distributors who stock products closer to the markets they serve. Häfele is also increasing local sourcing and manufacturing, including the commencement of local production in Maharashtra, as it looks to reduce dependence on imports and respond more efficiently to market requirements.
Strengthening The Global Network While Building Locally
For Häfele, the global and local parts of its supply chain are increasingly connected. Products sourced through its European network can benefit from greater efficiency and flexibility at the global level, while local sourcing and manufacturing give the company greater control over how it responds to requirements in India.
“In India, this global network is complemented by a strong local distribution infrastructure,” Schloeder said.
The approach is not limited to a particular product category. Instead, Häfele is looking to balance its global sourcing capabilities with a stronger local supply base as its portfolio and business in the region grow.
“This balanced sourcing approach is becoming increasingly important as our portfolio and business in the region continue to grow,” Schloeder said.
Local Manufacturing Becomes Part Of The Growth Strategy
Schloeder described India as a “strategically important growth market” for Häfele. The commencement of local production in Maharashtra is part of the company’s effort to build local value addition, develop expertise and establish the processes and supply-chain ecosystem required to support long-term growth.
This builds on Häfele’s earlier plans to increase domestic sourcing and develop India as part of its global supply chain.
As these capabilities develop, local manufacturing is expected to become an increasingly important part of the Häfele India supply chain, complementing products sourced through the company’s global network.
As its local capabilities scale, Häfele expects to progressively expand its localisation and manufacturing footprint while continuing to leverage its global network.
“This combination of global expertise and stronger local capabilities will be important in supporting the next phase of our growth in the region,” Schloeder said.
Resource Efficiency Extends To The Supply Chain
The Nagold facility also incorporates resource-efficiency measures, including reduced packaging material and lower transport volumes. Häfele sees similar principles applying to how it develops its Indian supply chain.
“Bringing more of our sourcing and production closer to the market can help reduce unnecessary movement of goods while creating a more efficient operating model,” Schloeder said.
For the Häfele India supply chain, the objective is to combine stronger global logistics with growing local capabilities to make operations “more agile and responsive to evolving market requirements” while strengthening resilience across India and South Asia.
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