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Dagab’s new, highly automated logistics centre now operational

6 March 2023

Four years ago, work began on the construction of Dagab’s new, highly automated logistics centre, which will supply goods for stores and e-commerce in all of Axfood’s store concepts. At that time, a goal was set to begin deliveries to stores in the week starting 6 February, 2023 – a goal that has now been achieved.

Dagab’s new, highly automated logistics centre now operational

Four years ago, work began on the construction of Dagab’s new, highly automated logistics centre, which will supply goods for stores and e-commerce in all of Axfood’s store concepts. At that time, a goal was set to begin deliveries to stores in the week starting 6 February, 2023 – a goal that has now been achieved.

The highly automated logistics centre took four intensive years to complete, and an important milestone has now been reached. On 7 February, four Willys stores in Mälardalen region became the first stores to receive their deliveries from the new logistics centre in Bålsta – the same day the first deliveries were initially planned four years ago.

− So many people put so much energy, time and work into getting us to this point. We have been through a long period of preparation and planning both internally and across the entire Axfood family, but also with our suppliers and transport operators. So it has been fantastic to meet all of our milestones – from breaking ground to receiving our first delivery to the logistics centre and now to store deliveries. And all of this in a changing world, to put it mildly. Staying on plan, to the exact date, is an enormous accomplishment and team effort, and I would really like to thank everyone for their invaluable efforts, says Per Gifvas, Programme Manager for Dagab’s new logistics centre.

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Per Gifvas, Programme Manager for Dagab’s new logistics centre.

Various stages of deployment

The logistics centre began stocking the dry assortment in early December. During the first week, some 800 items were received. Now, over 13,000 items are in stock. The next stage of deployment was to initiate automated order picking and store deliveries. This work will continue throughout 2023 and into 2024, gradually adding stores and items from the refrigerated and frozen assortment, and finally e-commerce.

− Obviously it feels great to be up and running and that everything has gone so well. Many of us have been preparing for this day for a long time. Now we have started, and this will give us a chance to enter the next phase of our journey. Of course, challenges will arise, but we just see that as an opportunity to learn more. Our goal has always been to improve our operations gradually, says Peter Eriksson, Production Manager in Bålsta.

Store deliveries increasing

More and more Willys, Hemköp, Tempo and Snabbgross stores are being added every week, and dry goods are already being delivered to more than 30 stores. The goal is for nearly 700 stores to receive their deliveries of dry goods from Bålsta by the summer.

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Willys, Hemköp and Snabbgross receiving deliveries.

− All deliveries during this period are meticulously planned. During this stage, the stores that have moved over will receive their dry goods from Bålsta and their refrigerated and frozen goods from our existing warehouse. Delivery planning has been under way for a long time and our store chains are on board, but of course we are excited to get going, and to learn and improve along the way. This has been a team effort, and many people have done a fantastic job to get us to where we are today, which just goes to show that we are stronger together, explains Dennis Danielsson, Transportation Manager in Bålsta.

Logistics centre with Sweden’s largest rooftop solar power facility

The logistics centre in Bålsta is unique, spanning over 100,000 square metres and featuring Sweden’s largest rooftop solar power facility. The solar power facility, which will produce green energy and supply the energy needed by the logistics centre, will soon be up and running. With over 16,000 solar panels on a surface of approximately 80,000 square metres, the facility is expected to generate some 8.9 MW when fully operational, corresponding to annual production of 7.8 GWh.