Customer challenge
B&Q is the U.K.’s leading home improvement and garden living retailer, with over 300 stores in the U.K. and Ireland and more than 700,000 home improvement products available online.
In 2015, B&Q sought a reliable and innovative logistics partner to manage its retail transport requirements, including hundreds of fleet assets serving national and regional distribution centers in the U.K. and Ireland.
Solution
B&Q selected GXO to gain access to the company’s first-class transport solutions following the success of the existing returns center, where GXO has been offering refurbishment and repackaging services to B&Q since 2005.
GXO immediately began reducing the large transport fixed-asset base by optimizing the delivery schedule, increasing backhaul through B&Q and GXO customers, tactically expanding subcontracting and managing the seasonal profile more efficiently.
GXO also enhanced transport efficiency in its core fleet by implementing the Paragon planning system and Microlise telematics.
To reduce emissions, GXO and B&Q increased their use of LNG-powered vehicles — LNG is the most advanced alternative fuel for large transport operations — and launched a wide variety ofadditional sustainability projects designed to reduce emissions.
The success of GXO’s transportation solution for B&Q led to the expansion of the operation to include the “Store to Home” final mile service in 2021, operating from dozens of B&Q stores across the UK, seven days a week. In 2023, the relationship was further extended, as GXO began managing B&Q’s flagship distribution center in Blyth, Nottinghamshire.
Results
GXO’s transformation of transport and its consolidation of operations centers for B&Q have increased efficiency, improved customer satisfaction and created cost savings for B&Q.
In each of the first two years of the agreement GXO delivered significant savings, exceeding projections, by optimizing store delivery frequencies and vehicle maintenance agreements as well as reducing the size of the fleet.
Introducing one of the largest LNG fleets in the U.K. has reduced CO2 emissions and reduced operating costs.
GXO plans to create significant ongoing savings through its commitment to continuous improvement.