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.

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.

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