“Our customers should always get more than they pay for” 

And the figures speak for themselves. 700,000 unique customers have shopped via Engelson’s e-commerce in recent years. In 2023, no fewer than 800 postal lorries filled with Engelson’s goods left the company for further distribution to customers. Now, a new 28,000 m2 logistics centre has been completed in Falkenberg to take logistics to a new level. An impressive warehouse that we at EAB have had the privilege of building and furnishing to meet current and future needs.

When we meet Stefan Engelson, owner, and CEO of Engelsons, he tells us that he took over the company in 1998 from his parents Gun and Arnold. At the same time, the mail order company moved from Älvsered to Falkenberg, where they also opened a shop. Being the entrepreneur that he is, Stefan felt it was important to constantly develop and “keep up”. This meant that Engelsons was early to have its own website, back in 1996. The business grew and in 2010 Engelsons moved to completely new premises that would cover the increased need for appropriate space for warehouse, shop and office.

After a further expansion in 2014, and successive additions of external warehouses in four different locations, it was decided in 2022 to build a brand-new logistics centre along the E6 motorway in Falkenberg. Today, the company’s 130 employees have a turnover of almost SEK 600 million, but fundamentally, much remains the same.

Everyone should be able to afford to spend time outdoors

– I’ve been involved in the business since I was a child and have always felt a sense of job satisfaction in what I do, and I’ve translated that desire into the development of the company in various ways. I have had loyal and highly competent employees to help me, many of whom have been with me throughout the journey.

– It may seem that we have grown quickly, but that has not been the goal. We have not been in a hurry, but wanted to feel confident in every new step we take. For us, it has been important to never deviate from the basic idea of the company, and that means listening to what the customer wants. Then we make sure to deliver it in the fastest possible time with function, quality and the best service at prices everyone can afford. We humans thrive on being outdoors and we really want to encourage that.

Holistic approach in Falkenberg

Stefan emphasises the value of listening to the customer by, among other things, being the recipient of the praise and any criticism that the customer wants to pass on after having been in contact with Engelsons in one way or another. Because control at all levels is an important part of Engelsons’ concept of success.

– We have a holistic approach where we have control over all parts and where we own all decisions. We need to understand what we do and why. We have therefore gathered purchasing, design and product development here in Falkenberg. We constantly develop our four own brands with new garments and functions. All manufacturing is done in China with suppliers that we know well and have hand-picked to guarantee the best possible quality.

Time to scale up working logistics concepts

– The plans for a new warehouse have been around for a long time and, above all, it has been impractical to have warehouses located in four different places around Falkenberg. Basically, we are very happy with the logistics concept we have today, which is 90% based on stock management in shelf racks. So, we decided to keep the basics, but scale it up properly.

Automating the new warehouse has not been an option for Engelsons, which operates with a parcel warehouse where all goods are picked by hand.

– For us, it will be more efficient not to store too high. We have therefore set a maximum height of 3.5 metres, which is a good height for shelf storage. We also have huge seasonal fluctuations that make it more economical to call in extra staff when needed to meet the peaks, than to have robots standing still for much of the year. In other words, there is no need to automate for automation’s sake. People are also more flexible and pleasant to be around, says Stefan, laughing.

Local suppliers

– When selecting suppliers for our new logistics centre, we have tried to use local contractors as much as possible, preferably companies with which we have previous connections. EAB is one of these, as we have been using EAB’s warehouse interior products for a long time and are very satisfied with the cooperation. Therefore, this time they also got to deliver the house itself to the new facility in Falkenberg.

– It’s an impressive project of around 28,000 square metres that we had the privilege of building for Engelsons. We have delivered and installed the steel frame, roofing sheet, walls and joists for the plant, says Martin Mårtensson, Sales Manager at EAB Stålbyggnader.

– EAB has done a fantastic job throughout the project process. They have even finished earlier than expected. We know from experience that they maintain high quality at all stages and it feels good that they manufacture everything in-house in Smålandsstenar. Niclas, who is a project manager at EAB, has been responsive and shown great understanding and willingness to adapt when we made changes along the way.

Anders Lundgren, Logistics Manager at Engelsons.

Floating warehouse with 150 000 pallet spaces

– Flexibility and efficiency are our watchwords as we work with so-called floating warehouses, which means that items are given new storage locations every time a new delivery is to be stored. We have therefore oversized the warehouse to create flexible space and air for the special product handling we have with 10,500 different items, a buffer stock of 150,000 packing spaces and 18,500 picking spaces.

Storage takes place in four parts, starting with a delivery that goes directly to a buffer warehouse, then the item is taken to a picking location and from there to packing for further deliveries to e-commerce customers, or to the own store a few kilometres from the new warehouse. The warehouse process also includes sorting functions for both incoming and outgoing deliveries.

– Part of our commitment has been to reuse existing shelves from Engelson’s external warehouse, as well as the warehouse they have adjacent to the store. Specifically, 14,500 shelves and 16,000 metres of shelf posts that we dismantled and then reassembled in the new warehouse. Some we have had to rebuild slightly to fit into the new facility, says Niclas Svensson, project manager at EAB Lagerinredningar.

Ready for the future

The new buffer warehouse is now ready for all incoming and outgoing deliveries. In week 35, the pack-o-pick unit will move in. It’s a staggeringly large warehouse, especially when compared to the 25 square metre basements where the business started.

– You always think that we’ve covered enough for a while, but we’re taking it one day at a time and seeing what the future holds. We’ve only covered a small part of Sweden’s need for outdoor clothing so far. And only a third of the 90,000 square metre site has been built on, Stefan concludes with a big smile.