Superior Shopping Experience with Supply Chain Optimisation

ASOS, a global fashion destination, has announced a collaboration with Celonis to optimise supply chain operations. Through the Celonis Process Intelligence platform, ASOS is connecting its end-to-end supply chain to provide full visibility, transparency and accountability, enabling reductions in process variation, increasing speed to market, and improving the customer experience.

“ASOS is a prime example of how leading retailers can use Process Intelligence to transform their operations,” said Rupal Karia, General Manager for UKI and MEA at Celonis. “With Celonis, ASOS gets unprecedented visibility into its end-to-end supply chain and can identify and act upon opportunities for improvement in real-time. Together, we’re unlocking the full potential of ASOS’ supply chain to deliver faster, smarter, and more efficient operations at scale.”

Transforming ASOS’ Supply Chain and Driving “Speed to Customer” with a Process-first  Approach

As a leading online fashion retailer, ASOS operates in a highly dynamic and competitive market where speed to customer is a critical differentiator. Leveraging the Celonis Process Intelligence platform and its game-changing object-centric process mining (OCPM) technology, ASOS can connect its product, inbound supply chain, logistics and outbound delivery & returns teams, providing a holistic, real-time view of the full supply chain process—from purchase order to putaway to products on the doorstep. This enables ASOS to gain actionable insights into key supply chain performance metrics, which will help drive faster, more reliable order fulfillment​.

“With Celonis, we’ve connected our entire supply chain—from intake and inbound to outbound and returns—enabling teams to break down silos, streamline processes, cut costs, and deliver the latest trends to customers faster,” said Laurence Moore, Head of Strategic Projects, Supply Chain at ASOS.

A Vision for the Future: Scaling Process Intelligence across ASOS

As part of its long-term digital transformation strategy, ASOS is exploring ways to expand Celonis across multiple business functions, including Purchase-to-Pay, Order Management, IT Service Management, and Warehouse Management​. With real-time process monitoring, ASOS can further enhance efficiency, reduce costs, and continue delivering an outstanding customer experience.

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Poor Visibility is Leading Cause of Fulfilment Chaos

 

US Trade Tariffs’ Supply Chain Disaster

Trump’s outrageous ’emergency’ executive order announcement of import tariffs on goods coming from Canada, Mexico and China – the USA’s three biggest trading partners – was not unexpected but still shocking, repulsive and disastrous. His reckless actions, initially threatened to commence on Tuesday, would cause price rises for American consumers, bottlenecks, disruption, red tape and inventory problems, not to mention the negative impact on business confidence and economic growth for the global economy. When he subsequently ‘suspended’ the threat to Canada and Mexico we knew it was a bluff and the typical ‘mob-style’ antics that the man uses.

Chris Clowes, executive director at global supply chain and logistics consultancy, SCALA, commented:

Chris Clowes, Scala

“The announcement of the US’s incoming trade tariffs on Canadian, Mexican, and Chinese goods, coupled with Trump’s ongoing rhetoric around trading with the EU, is bold. Waging a trade war with four of its biggest trading partners could have negative ramifications for the US. Nearshoring manufacturing to the US will be hard to justify for some companies, given the higher cost base and the expertise and sheer scale of operations that overseas manufacturing has previously provided. And with business challenges come consumer impacts. Rising costs would likely lead to cost-push inflation – meaning the consumer pays more for the goods and services they seek – and dampened purchasing power. For the rest of the world, however, we could see the likes of China, the EU, Canada, and Mexico form a trade alliance. We could also see potential trading opportunities for places like the UK open as countries look for new places to import.”

 

US Tariffs on China Ignite Trade War Tensions: What’s Next for Global Logistics?

As of Tuesday, China has been hit by an increased import charge of 10% for any item entering the US. Because of this, they’ve now vowed to retaliate after 10% tariffs were placed on Chinese imports into the US earlier today. And, with the EU, Canada, and Mexico also set to have tariffs imposed on them in the coming weeks, the question on everyone’s lips is: What is next for global logistics businesses?

What are tariffs?

In simple terms, tariffs are taxes on goods imported from other countries. The majority of tariffs are set as a percentage of the value of the goods, which the importer generally pays. So, for example, if a product imported to the US from China (after the 10% tariff imposed today) is worth 5 dollars, it would face an additional 0.50 cent charge applied to it. By increasing the price of imported goods, the US hopes to encourage consumers to buy cheaper domestic products instead, to help boost their own economy’s growth by growing the US economy, protecting jobs, and raising tax revenue.

What does this mean for the logistics industry?

Jackson Wood, Director of Industry Strategy, Global Trade Intelligence at Descartes, states, “Since the beginning of the COVID-19 pandemic, companies conducting global trade have been dealing with an increasingly volatile and uncertain environment. From product shortages, congested shipping lanes and military conflicts to political upheaval and environmental disasters, supply chains have been tested to the limit for the past five years.”

Tariffs and Trade Barriers
Jackson Wood, Descartes

Wood continued, “What has remained constant through these disruptions is the imperative to build resiliency and responsiveness into global supply chains. This includes diversifying supplier/customer relationships, identifying alternative trade lanes, and potentially leveraging trade instruments (including Foreign Trade Zones and Free Trade Agreements) that can mitigate the risks posed by this volatility. These same concepts apply to the new paradigm of tariffs and protectionism — those companies that have prioritised resiliency and responsiveness in their global trade operations will be better positioned to thrive.” However, only time will tell until we see the true effects of the upcoming trade war on the horizon…

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Global Supply Chains Forced to Change Rapidly

 

Fashion Retail Fulfilment Centre

When online fashion retailer ASOS embarked on setting up its fourth fulfilment centre, the company turned to tried and trusted materials handling partner, BS Handling Systems. ASOS took possession of the keys for the 437,000 sq. ft. Lichfield, UK, warehouse in January 2021 and had less than eight months to make the site fully operational by August of that year to support the Black Friday peak in November.

“In October 2020 we began a very rigorous tender process to identify suppliers who would not only deliver competitive and high quality solutions, but also work as part of a team in a flexible, adaptable and responsive manner,” explains Gary Beveridge, Director of Supply Chain Development for ASOS. Having previously worked with BS Handling Systems on a number of major projects, it was clear that they would be able not only to deliver the right solution, but also to adapt to the inevitable design changes that pop up as a project of this nature progresses.

“The first phase of BS Handling Systems’ support provided the major conveyor and despatch sorter elements. Later followed design and installation of additional smaller works including our secure caged area for high value items such as jewellery and belts; a hanging garment storage system that transports inbound goods on hangers (GOH) from goods in up to the top floor of the pick tower, and a conveyor solution to get waste cardboard boxes from all five storage floors of the pick tower out to the waste skips in the yard.”

Storage capacity of around 7 million units of stock

The site go-live was planned for August 2021, providing a storage capacity of around seven million units of stock and outbound capacity of a million units of stock shipped on customer orders each week. BS Handling Systems was responsible for creating the conveyor ring which helps move 1200 inbound cartons or returns totes, as well as
1200 outbound totes an hour through the pick tower. In addition, the company had to design, build and install a high speed despatch sorter with a capacity to handle up to 14,000 parcels an hour.

New stock, in cartons, is unloaded from delivery trucks and placed on the inbound conveyor system. This transports stock through two DWS (Dimensioning-Weighing-Scanning) systems and ultimately to its storage location in shelving on one of four put away zones on each of five storage floors of the pick tower. Outbound picked items are placed in colour coded totes – black for multiple orders and green for singles – these totes are transported down to one of four outbound tote sortation zones on the ground floor.

From here, the totes are delivered to one of four packing lines which BS Handling Systems designed and installed. Each line comprises of 20 packing benches and a conveyor with DWS systems to transport the packed goods to the despatch sorter inducts or direct to the loose load trailer despatch line. Four 2 x 2 Intralox ARB sorters – one per infeed line – divert the product to one of two banks of high-speed sorter inducts which merge the packages onto the despatch sorter or direct to the loose load trailer line.

Versatile high speed despatch sorter

The despatch sorter had to be capable of handling a wide range of package sizes and weights, from small items such as jewellery right up to large boxes with coats or pairs of boots. It had to be able to handle these varying sizes rapidly without error, as the long-term capacity target is four and half million units going out to customers each week during peak.

BS Handling Systems also designed and built a waste cardboard box removal system. This consisted of three steel chutes running from the top floor of the pick tower down to the first floor where the boxes dropped onto a dunnage conveyor belt taking them out to the automatic waste baler in the yard.

To avoid blockages occurring in the steel chutes, BS Handling Systems designed a clever, but simple ‘traffic light’ system at each input station on every chute. When arriving at the chute, the light is red and the operatives cannot put waste down the chute. The operator presses the ‘request use’ button, and once the light turns green they have a set period of time to safely dispose of the waste down the chute – locking out the other floors. This avoids too many boxes going down the chutes at one time and either blocking the chutes or over-loading the conveyor at the bottom.

The project also required BS Handling Systems to design and install a conveyor system that enabled the unloading and loading of goods from and into truck trailers. The solution included six man rider telescopic boom loaders; these booms improved the efficiency of unloading and loading goods directly from or into the back of the trailers.

A true partnership founded on a ‘can-do’ attitude

Beveridge added, “the team at BS Handling Systems did a fantastic job throughout. They are exceptionally easy to deal with and very responsive, always demonstrating a ‘can-do’ attitude. Without hesitation, they are willing to go ‘above and beyond’ to make sure that the end product delivered to ASOS is absolutely the best we can achieve. They now have a team of ten engineers on site providing 24/7 maintenance for the facility; this team works closely with GXO who run the operation for us. The maintenance team has integrated really well into our structure here in Lichfield. They have their own caged area on the ground floor with all the spares required to ensure we can keep the fulfilment centre running.”

More than just a supplier

“Rob, Stephen and the BS Handling Systems team have worked with ASOS for a long time and we consider them more than just a supplier. The timelines we had to achieve here at Lichfield were tight and it was comforting to know that we could trust BS Handling Systems not only to do a really professional job, but also to go above and beyond whenever it was necessary. There’s no question that, however challenging, they will always do what’s best for ASOS,” concludes Beveridge.

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