Setting Up a Distribution & Fulfillment Center
A Logistics Plus® Supply Chain Success Story!Setting Up a Distribution & Fulfillment Center to Support the Growth of a Luxury Brands Retailer
Logistics Plus harnesses the power of its ‘yes’ culture to help a fashion and luxury brands retailer open a Chicago distribution and fulfillment center to bring the brands it works with closer to a key market.
THE CHALLENGE
Logistics Plus (LP) is a leading worldwide provider of transportation, warehousing, fulfillment, global logistics, business intelligence, technology, and supply chain solutions. In 2020, a global luxury brand retailer approached LP with the challenge of rapidly deploying a distribution and fulfillment center near Chicago. It was a massive undertaking as the client needed this solution to be deployed within two weeks, and they had already begun shipping the products to their retail store, which was under construction and would not be ready for months. This project started in May 2020, just a few short months after the country had been shut down in March 2020 due to the global pandemic.
THE SOLUTION
True to its culture and roots, Logistics Plus said “Yes!” to the challenge and assembled a team to solve the challenges. Within one day, LP immediately acquired a large warehouse next to O’Hare airport to begin receiving the inventory. They leveraged every possible resource to create a pop-up fulfillment operation complete with high levels of security, staffing, and equipment needed to operate the center. Just four days after the client’s request, LP had a fulfillment center built and ready to begin receiving over 30,000 pairs of collectible and luxury brand sneakers, 100,000 luxury apparel items, and various items.
THE RESULTS
With LP’s quick deployment of resources and the acquisition of the facility, its client was able to successfully deploy a Midwest operation within two weeks, supporting their growth and solving a substantial short- and long-term problem. The fulfillment center began by processing 200 orders per day on its implementation day and has grown to capably manage up to 5,000 orders per day at its peak. Inventory levels now exceed 200,000 individual SKUs and items per day on average.
One of the obvious significant benefits to the client was the speed with which the project was executed. The challenges faced by the client were unforeseen and completely uncontrollable. The potential for highly significant business disruption was very real. LP’s rapid response and execution saved the client millions of dollars in lost revenue. Not many 3PLs on the planet would have been able to turn a solution for a project of this scope and size within two weeks, particularly given the need to acquire a warehouse, hire and train a staff, and implement WMS technology systems and security systems.
As a 21st century logistics company, LP was able to leverage its can-do culture, lean management structure, and network of resources to deliver a high quality and valuable solution for a terrific client.