Denver Bike optimizes parts management for bicycle assembly

Leader in bicycle production in Europe

Nearly 30 years ago, two brothers passionate about cycling founded Denver in Dronero (Italy). Since then, the company has steadily grown. It manufactures a wide range of road and mountain bicycles as well as electric and children’s models. Committed to environmental stewardship and sustainability, Denver is transforming its supply chain to cope with increased demand in one of its new facilities in Tarantasca. Founded in 1996, Denver has a team of over 100 employees and a maximum production capacity of 4,000 bicycles a day.

With the launch of its new logistics center in Tarantasca (Italy), Denver has established itself as one of Europe’s largest bicycle manufacturers. “In recent years, we’ve made several strategic investments. One of the most significant is commissioning this warehouse and digitalizing its management with Mecalux’s Easy WMS,” says Gianluca Vergari, Logistics Manager at Denver.

The Easy WMS software optimizes operations in the business’s new facility and ensures the traceability of 3,000 SKUs. “The system records the exact position of products in the warehouse, making it easier to locate them later on,” says Vergari.

Increased production

Denver has four production facilities with a combined surface area of 9.9 acres. The new warehouse in Tarantasca has enabled the company to allocate more space to the production lines at its headquarters in Dronero and to the storage of finished goods subsequently sent to end customers. Additionally, the Tarantasca facility serves as a buffer to supply large distributors and retail chains.

Previously, all logistics processes were concentrated at Denver’s Dronero headquarters. With the rise in production in recent years, the business needed a higher storage capacity and better product organization. Every day, the Italian company manufactures and paints 2,000 bicycles (electric, traditional, and children’s). “The new warehouse accommodates 15,000 pallets,” says Vergari.

Supervision of 3,000 SKUs

“We digitalized the new facility to drive the expansion of our business and gain greater control over materials. To achieve this, we contacted Mecalux, a front-runner in storage solutions and logistics software,” says Vergari.

The Easy WMS warehouse management system tracks the 3,000 SKUs stored from their receipt — 200 pallets a day from suppliers — to the shipment of final goods. “The Mecalux software has provided us with improved product traceability and control to prevent errors in deliveries to the assembly lines,” says Vergari.

To facilitate the organization of goods, the Tarantasca warehouse is divided into two zones: one for finished products and the other for parts sent to the Dronero manufacturing plant. “Easy WMS manages the components for bicycle assembly based on order fulfillment requirements and the ABC analysis. This method recommends optimal storage locations to streamline operator movements,” says Vergari.

The WMS software also manages picking tasks. “Every day, we deliver 200 pallets to the assembly lines and other distribution centers,” says Vergari. Warehouse associates pick products from the shelves and stack them to form new pallets.

Organization is crucial for error-free order fulfilment and production line supply. Associates process orders in a specific sequence, creating pallets with multiple SKUs tailored to the needs of each assembly station.

Logistics processes in transition

With environmental awareness growing, bicycle use is becoming more widespread. This activity can reduce reliance on cars and lower pollution levels. Denver has transformed its supply chain to meet rising demand and support healthier ecosystems. “Our company is at a turning point. We’re making substantial investments that we expect will improve our logistics processes, making us more competitive and increasing our business volume,” says Vergari.

Easy WMS has provided us with improved product traceability and control to prevent errors in deliveries to the assembly lines.