Maersk Opens Advanced Fulfillment Center for Levi Strauss

In a strategic move to enhance its logistics and distribution capabilities, Levi Strauss & Co. has partnered with Maersk to open a omnichannel fulfillment center in Groveport, Ohio with state-of-the-art 1.2-million-square-foot. This facility, which started operations in August, is designed to streamline Levi’s supply chain across its wholesale, retail, and e-commerce channels, allowing the iconic apparel company to increase speed, efficiency, and on-time performance.

The facility’s advanced services include end-to-end logistics solutions, from origin consolidation to omnichannel fulfillment. Maersk’s Warehouse Management System will play a key role by offering real-time inventory visibility and allowing Levi’s to adjust production on the fly, further optimizing operations. The location will also serve as a training hub, ensuring continuous improvement in operational standards.

Maersk Opens Advanced Fulfillment Center for Levi Strauss

A key feature of the Groveport facility (pictured left) is its EuroSort system, which supports batch picking, enabling warehouse pickers to gather multiple orders in one trip. A Maersk spokesperson explained the technology’s impact: “It’s a proven solution for sorting apparel, operating at high speeds, and can process up to 28,000 products per hour and handle up to 100 million units per year.” The system also includes capabilities for automatically handling leftover cartons, reducing the manual workload for pickers and enhancing overall operational efficiency.

The first of two EuroSort systems is already 70% installed, with the second expected to be operational by November. The entire setup is projected to go live in early 2025. These advancements in technology allow Levi’s to focus on a direct-to-consumer-first (DTC-first) business model, with faster, more accurate fulfillment processes.

Levi Strauss’ decision to collaborate with Maersk comes after the company announced its plans to shift away from a primarily owned-and-operated logistics network in the U.S. and Europe. Instead, Levi’s is leaning on third-party logistics services (3PL) like Maersk to reduce fulfillment costs while still maintaining high service levels. Craig Jones, Levi Strauss’ Senior Vice President of Global Distribution and Logistics Operations, highlighted this approach: “This Maersk-designed and operated facility is an important step in our strategy to transition to a hybrid distribution and logistics network that balances omni-capable owned-and-operated facilities with technologically advanced 3PL facilities like this one.”

The Groveport center marks the tenth global facility that Maersk operates for Levi Strauss, with other centers mostly located in Asia. As Levi’s continues to evolve its distribution strategy, the partnership with Maersk highlights the retailer’s commitment to embracing cutting-edge technology and efficient logistics to meet the growing demands of the modern retail environment.

Levi Strauss’ shift towards leveraging 3PL providers like Maersk reflects a broader trend within the retail industry, where companies are increasingly focusing on cost-effective and technologically driven solutions to meet consumer expectations for fast and seamless omnichannel experiences. This new fulfillment center will allow Levi’s to continue scaling its operations while maintaining a competitive edge in the global apparel market.

Read Similar…

Surge Pricing on Shipping Dampens Profits of Logistics Firms

Cathay Cargo use New Technology to Transport Giant Panda

Cathay Cargo, a global provider of air freight services, successfully utilized Descartes Systems Group’s Bluetooth® Low Energy air cargo tracking solution for real-time monitoring of the condition and location of Giant Pandas An An and Ke Ke during their safe journey from Chengdu, China to Hong Kong. The pandas arrived at Hong Kong International Airport on September 26, 2024. Descartes, the global leader in uniting logistics-intensive businesses in commerce, provided the technology that ensured the animals’ well-being throughout the transport.

“We’re excited that our technology played a role in the safe arrival of such a special shipment from Chengdu to Hong Kong,” said Frank Hung, VP Sales and Marketing at Descartes. “With our advanced IoT-based tracking capabilities, our customers are not only able to monitor the location of their shipments in real-time, but also shipment conditions such as temperature, light, vibration and humidity—which takes on an even more important dimension for Cathay Cargo in this unique situation.”

Cathay Cargo has used the Descartes solution as part of its Ultra Track cargo tracking service since 2021. The solution helps the air cargo carrier provide customers with real-time shipment location and condition status for airport-to-airport moves of high value goods such as electronics, perishables and pharmaceuticals. The Ultra Track service is available in 29 airports across Cathay Cargo’s network.

The Descartes air cargo tracking solution is designed to help airlines and ground handling agents (GHA) provide forwarding and shipper customers with end-to-end shipment visibility. Descartes Bluetooth® Low Energy powered tags placed on Unit Load Devices (ULD) or pallets provide location and condition status data that is captured by Descartes Bluetooth® Low Energy readers. Readers are part of the Descartes global Internet of Things (IoT) network and a Descartes Global Logistics Network™ service. Shipment status can be tracked whether goods are in the air or on the ground to help the air cargo community automate the end-to-end tracking of freight location and shipment status information such as precise temperature, movement, shock, light and humidity.

“We’re pleased to have supported Cathay Cargo in this extraordinary endeavor,” said Scott Sangster, General Manager, Logistics Service Providers at Descartes. “Customers with temperature-controlled, time-sensitive and other specialized cargo expect to be kept informed of the location, condition, and chain of custody of their air shipment throughout its journey. By building out our IoT network in more geographies, deploying active readers across more locations and expanding the reach of the network, we’re helping the air cargo industry meet requirements for real-time, multi-dimensional cargo visibility and facilitate more secure, efficient, and responsive logistics operations.”

Read Similar…

Cyber Security Risk for Supply Chain Software

UK Port Infrastructure Fund Project

GHD, a global professional services company, in collaboration with Costain, an infrastructure solutions company, has successfully delivered a transformative approach to border processes post-Brexit through the Cabinet Office’s Port Infrastructure Fund (PIF) project. This holistic assessment has helped transform the UK’s border trade approach and improved international supply chain security.

In response to the UK’s post-Brexit trade needs, the PIF was established to provide infrastructure funding to 40 ports of entry, aimed at curbing criminal activity and enhancing biosecurity. To facilitate the successful delivery of the PIF, GHD and Costain were appointed by the Cabinet Office to address challenges and ensure the PIF helps achieve the Border 2025 strategy initiatives while balancing infrastructure spending, policy development, and cross-departmental collaboration.

Harnessing their joint expertise across supply chain, logistics, port operation, trade facilitation, and data analytics, the partnership formed by GHD and Costain marked a pivotal shift in approach and bolstered the government’s capabilities. With an approach centered on cross-Whitehall collaboration and transforming data into intelligence to improve understanding of trade movements. The project team provided previously unavailable evidence and intelligence by integrating data from government sources, third parties, and innovative new solutions such as movement data from Mobile Network Data.

The work delivered by GHD and Costain was central to the successful delivery of the £200 million (PIF) on time and within budget, streamlining processes, and directly delivering savings of over £300 million in other government infrastructure spending. Additionally, the initiative reduced potential annual costs to the supply chain industry by £1 billion through advice and refined policies to minimise border friction.

To complement the ongoing knowledge transfer and ensure a legacy of built knowledge, the partnership also devised a comprehensive Borders Curriculum covering various border management topics to upskill Cabinet Office personnel, facilitating a 60% increase in the level of understanding. Recognised for its role in delivering innovative solutions that drove positive impact and advancements in this project, GHD was shortlisted in the Change and Transformation in the Public Sector category for the 2024 Management Consultancies Association (MCA) Awards.

Matt East, Sub Sector Lead, GHD, said:
“Working on this groundbreaking project required a high level of expertise from the GHD and Costain team and a close relationship with the Cabinet Office. Our team successfully addressed these challenges with a collaboration-oriented approach, leveraging our knowledge in infrastructure spending, policy development, and cross-departmental collaboration. This project not only fortified the Cabinet Office’s internal capabilities but also delivered the infrastructure within the context of policy updates, a feat seldom accomplished. We believe this project demonstrates our commitment to driving innovative initiatives and setting new standards for enhancing government operations. Looking ahead, we are eager to leverage the experience and learnings gained from this project to deliver meaningful advancements to similar initiatives.”

Alex Brooks, Executive Advisor, GHD said:
“It was a real privilege to work on this highly influential project. By bringing together the teams’ deep-domain knowledge and data modelling and analytics capability, we were able to provide previously unavailable data-driven intelligence to contextualise, shape and improve processes and policies that will result in a real benefit to the national economy, biosecurity and supply chain, but most critically to ensure continual benefit to people across UK communities on a day-to-day basis.”

Phil Wilson, Deputy Director, Cabinet Office said:“The team have aided Cabinet Office to transform the UK border and develop our Borders Group team by providing critical insight, domain expertise and technical capability to support the delivery of major border policy across government. Knowledge transfer has been a key part of this, and our team continues to benefit.

“We have established a truly collaborative relationship, integrated our teams, and established an environment of healthy challenge and trust to facilitate delivery. Together we have established millions of pounds in savings of taxpayer money, de-risked high-profile areas to government and navigated huge data-availability challenges to deliver high value intelligence to support decision making up to ministerial level. I am proud of these achievements and the work we have done.”

Tim DeBarro, Strategic Director, Transportation at Costain, commented:
“This has been a transformative project that continues our excellent track-record of identifying the most effective and innovative ways to deliver infrastructure solutions for our customers. This has been achieved through excellent collaboration, a laser focus on value-for-money, and a deep knowledge of the GB-EU border infrastructure and trade routes. Our efforts have led to significant efficiency in the delivery of the UK’s critical national border infrastructure, achieved within the policy framework and, crucially substantial savings for the taxpayer.”

similar news

Contract to Provide UK Border Force with Transport and Warehousing

 

Subscribe

Get notified about New Episodes of our Podcast, New Magazine Issues and stay updated with our Weekly Newsletter.