October 8, 2024 in ARTICLES
How HBM Machines Drive International Growth Through Supply Chain Efficiency & Strategic Partnership
Original article published by RetailTrends | Written by Marjolein Straatman
HBM Machines sees significant growth and expands internationally with a streamlined supply chain to support ambitious goals.
Delivering high-quality tools and machines at competitive prices has long been the core formula for HBM Machines. Over the years, professional hobbyists and entrepreneurs have turned to HBM for all their workshop needs – whether outfitting a workspace or sourcing supplies for metalworking, construction, woodworking, or automotive projects.
Today, HBM’s product range boasts over 9,000 items, most of which are purchased via its online store, though customers can also visit the showroom in Moordrecht, Netherlands. “90% of our revenue comes from our own HBM brand,” says Johanneke de Moor, Head of Category Management and Supply Chain. “We aim to offer the widest possible range with a value-for-money proposition.”
INTERNATIONAL EXPANSION
This approach has been highly successful for HBM Machines. Over its 52-year history, they have expanded significantly. What started as a small family business has grown into a prominent supplier of machines, tools, and accessories, employing around 200 people.
The launch of HBM’s online store propelled the company’s growth, and they are expecting double-digit revenue increases again this year. “Our growth is driven by continuous improvement and diversification of our product range, particularly with the expansion of our own tool brand,” De Moor explains. “Thanks to our online store and international dealers, our products reach customers and retailers across borders. We’re currently active in the Netherlands, Belgium, Germany, Austria and France, with plans to expand into more European markets while strengthening our brand and product offerings.”
ENHANCING SCALABILITY
A streamlined supply chain is vital to managing HBM’s operational processes and supporting its growth. Most of HBM’s products are imported from Asia, but until recently, the company had limited control over its supply chain.
Previously, goods from countries like China were shipped from numerous ports, creating inefficiencies. “We needed a new IT infrastructure to gain better visibility into container volumes, orders, and shipments. We had to professionalise our processes in order to grow – essentially, we needed to improve our scalability,” says De Moor.
SUPPLY CHAIN CONSOLIDATION
This need for greater efficiency led HBM to partner with APL Logistics, a global supply chain solutions provider. APL Logistics specialises in optimising supply chains and reducing risk for various industries, including industrial and automotive manufacturing, consumer goods, fashion, and retail.
“For HBM, we developed a more consolidated shipping flow, meaning that products from different manufacturers are now combined into a single container wherever possible,” says Carl Koene, Business Development Manager at APL Logistics. “Several suppliers are now shipping their goods to a different port than they used to, all converging at the same APL Logistics warehouse. This reduced the number of Chinese ports used from 28 to 15. As a result, each container is now utilised 5% to 10% more efficiently. Fewer, fuller containers mean lower costs and a smaller environmental footprint.”
APL Logistics also implemented a ‘vendor performance measurement’ system to streamline the supply chain further. Suppliers are automatically notified when their products must be loaded into a container. APLL’s system ensures that export documents are checked in advance, facilitating smoother customs clearance in the Netherlands.
REAL-TIME INSIGHTS AND CONTROL
At the heart of this supply chain overhaul is APL Logistics’ LSS+ system, which integrates both HBM and its suppliers. This system allows HBM to track the status of every order—from placement to manufacturer booking and shipping milestones. Real-time data updates are shared continuously, providing 24/7 visibility into the progress of each shipment.
“With this transparency, HBM can better synchronise processes, avoiding bottlenecks,” Koene explains. “For example, with up-to-date shipment data, we can ensure the right number of distribution centre employees are ready at the right time.”
The centralised system also benefits other departments, such as finance, by enabling more accurate cash flow forecasting.
APL Logistics provides HBM with monthly reports detailing performance metrics, container capacity utilisation, and identifying suppliers needing additional follow-up. “This allows us to continuously improve the supply chain”, Koene adds.
ADAPTING TO A DYNAMIC MARKET
HBM’s partnership with APL Logistics has been especially valuable in navigating the unpredictable nature of global logistics. The supply chain is a constantly shifting landscape, or as De Moor describes it, “a bumpy playing field.” She notes: “We face many simultaneous challenges—rising container rates, supply shortages, and geopolitical factors are just a few of the issues we deal with daily. Working with a reliable logistics provider has proven essential in managing these complexities.”
By streamlining its supply chain and enhancing operational efficiency, HBM Machines is well-positioned to continue its international expansion while delivering value to its customers across Europe. The company’s focus on scalable growth and strategic partnerships ensures it remains a strong player in the competitive tools and machinery market.
Source: Marjolein Straatman, Zo houdt HBM grip op de supplychain, 10.09.2024, originally published by RetailTrends