Customer challenge
A leading Japanese multinational automotive manufacturer was restructuring its aftermarket network as part of a broader operational transformation. One division of dealerships was being separated from existing parts centers to create a more focused, dedicated aftermarket distribution model.
To support this transition, the customer needed a 3PL partner capable of quickly implementing a high-performance aftermarket operation that could deliver fast, consistent service to dealerships while aligning to established automotive LEAN standards. The solution required high-density storage, rapid fulfilment and seamless collaboration during design and implementation.
Solution
The customer selected GXO based on our proven LEAN operating model and the long-standing relationship already established across other operations. GXO was tasked with designing and operating a dedicated aftermarket distribution facility to support dealership fulfilment for the division.
GXO designed the warehouse for high-density storage, enabling the efficient management of 37,000 part numbers within 108,000 square feet of operational space. From the outset, GXO project managers and industrial engineers worked closely with customer teams to design workflows, layout and processes aligned to the brand’s operational methodology.
By applying LEAN principles throughout the design and implementation phases, the transition to the new operating model was delivered smoothly, ensuring stability, accuracy and optimal customer service from go-live.
Results
The streamlined operation now provides fast, reliable aftermarket support to the dealership network, consistently delivering within 17 hours from order placement to delivery.
Ongoing Kaizen events have focused on continuous process improvement, improving cycle times and enhancing overall operational efficiency, as well as reducing costs. To date GXO has delivered over $100,000 in annualized savings.
GXO’s understanding of the customer’s operating methodology and specific warehouse design standards, combined with strong service performance and a collaborative approach, enabled the relationship to grow further. As a result, GXO was awarded an additional 98,000-square-foot regional parts distribution center, expanding support for the customer’s aftermarket network.
This relationship demonstrates how GXO’s LEAN expertise, disciplined execution and commitment to continuous improvement help global automotive manufacturers modernize aftermarket operations and support long-term growth.