Levi Strauss Chooses Maersk for Fulfillment and Logistics
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The logistics provider has opened a multichannel facility in Ohio to serve Levi’s wholesale, retail, and e-commerce channels.
Published on October 18, 2024
### Summary:
* According to a press release dated October 9, Maersk has set up a fulfillment center for Levi Strauss & Co. as the retailer continues its transformation of its distribution and logistics network to enhance its omnichannel capabilities.
* This 1.2 million square foot omnichannel fulfillment center located in Groveport, Ohio will serve the retailer’s wholesale, retail, and e-commerce channels. Services include end-to-end solutions from origin consolidation to omnichannel fulfillment.
* Although operations at the Ohio facility began in August, the center is expected to improve on-time delivery rates, reduce container handling time, and increase speed and efficiency. According to the press release, this also allows Levi’s to focus more on its direct-to-consumer (DTC-first) business.
### In-Depth Analysis:
As Levi’s reliance on third-party logistics services deepens, it is leveraging warehouse technology adopted by supply chain giants like Maersk.
The Groveport facility will use two sorting systems called EuroSort. According to a spokesperson for Maersk speaking to Supply Chain Dive, the system has 40 intake points and 600 order positions used to match products with orders.
“This is a proven high-speed garment sorting solution capable of processing up to 28,000 items per hour or over 100 million units annually. The EuroSort system also handles residual cartons automatically. This setup reduces the number of times pickers need to walk by enabling batch picking, where team members can collect multiple orders in one trip,” the spokesperson said.
The first EuroSort system is already 70% installed, with the second scheduled to arrive in November, and the entire system expected to be operational by early 2025, the spokesperson added.
The warehouse is also equipped with Maersk’s Warehouse Management System (WMS), a real-time inventory management tool. Retailers can adjust production as needed, and the location can serve as a training center for improving operations, the spokesperson noted.
Levi’s chose Maersk because the retailer announced plans to gradually reduce its primarily self-operated distribution logistics network in the U.S. and Europe to lower fulfillment costs, according to the second-quarter earnings call.
According to the press release, this facility is also the tenth global site operated by Maersk for Levi’s. Other facilities are mainly located in Asia, a spokesperson for Levi’s said.
“This Maersk-designed and -operated facility represents an important step toward our hybrid distribution and logistics network strategy, balancing owned-and-operated full-service facilities with technologically advanced third-party logistics sites,” said Craig Jones, Senior Vice President of Global Distribution and Logistics Operations at Levi Strauss, in the press release.
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Source: Supply Chain Dive
