Operational Turnaround - Warehousing

Libra Europe streamlined stock processes for GXO Logistics at an Amazon site, achieving a 0.01% accuracy error rate and securing a contract renewal.

Background

Operating in 30 countries and with over 100,000 employees, GXO logistics is an American transportation and contract logistics company that manages supply chains for 50,000 customers worldwide. GXO operates approximately 800 warehouses with 2M sqft of space, making it the second largest third-party contract logistics provider globally.

Challenge

Working at a flagship Amazon site of over 1M sqft, there was a requirement to improve stock accuracy by better managing the receipt, put-away and control of stock.

Solution

Working with GXO management, an analysis of the site was conducted, focused primarily on goods receipting, put-away and fast-tracking processes on the site. A results planning process was developed, building upon tools and actions already in place with over 150 discrete actions identified for delivery. Headline areas of focus developed within the analysis / results planning process were: Vendor management and conformance; Good receipting work flows and process; Optimum stock locations; Put away work flows and process; Addressing slow moving and dormant units; System issues and user training; Junior management development and performance-related skills sets.

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Key output from the analysis was to redefine a ‘Golden-Zone’ through the warehouse with an emphasis being created on fast-moving SKUs - typically orientated within the facility for five days or less. Management control and reporting systems were reviewed and realigned to reflect business needs including frequency of review and generating action-orientated outputs.

Results

Libra Europe spearheaded a series of transformative results. They pioneered a redesign of processes, ensuring the implementation of accurate put-away procedures. Both management development and operator training were effectively delivered. Impressively, a net stock accuracy error was reduced to a mere 0.01%, achieving a sigma level of 5. Furthermore, a 5S programme was rolled out at the site, which then served as a flagship for GXO Logistics. This exemplary performance culminated in a contract renewal with Amazon.