End-to-end visibility of efficient parts distribution and high service levels
At GXO, we design, build and manage aftermarket supply chains that improve service levels, enhance product uptime and profitability and increase end-customer loyalty. Customers can leverage our global distribution network and extensive aftermarket supply chain experience, benefiting from the on-time delivery, productivity and accountability that we provide. We can also evaluate stock-level histories to reduce carrying costs through improved planning.
Our web-based visibility, real-time tracking, and distribution infrastructure comprise a highly reliable, end-to-end solution. We analyze usage and recommend the right volume and storage location for specific units, purchasing spare parts on our customers’ behalf when needed. When managing returns, our customers see real-time tracking of defective parts through the return-and-repair cycle; and we streamline the receiving and inspection processes to reclaim value from the returns.
- Aftermarket network design
- Demand planning
- Stock management
- Reverse logistics
- Time-sensitive deliveries
- Jobsite deliveries
- Courier services
- Configuration and testing
Collaborative partnership with an automotive manufacturer
In 2015, a multinational automotive manufacturer spun off one brand from its parts-distribution centers to give that brand more focus. The manufacturer chose GXO to distribute the brand’s aftermarket parts to dealerships for one of its divisions. We had built a relationship with this customer over time in other operations, and our strong track record and lean operating model made us the partner of choice. We were awarded two parts-distribution centers in the United States — a 108,000 square-foot facility and a 98,000 square-foot facility.
We designed both sites for high-density storage, with the capacity to ship 38,000-to-45,000 rolling SKUs to dealers in the region. Logistics processes are engineered to deliver orders within 17 hours of placement at one site and make daily deliveries from the other. In addition, we manage order referrals from dealers, shipping parts that are unavailable at the customer’s other distribution centers for next-day delivery.
- Forged a collaborative partnership with our customer over the first term of the contract, expanding the relationship from the initial labor-only agreement
- Won, piloted and implemented a new inbound sortation process in our distribution centers and recommended improvements before our customer rolled out the process across its network
- Worked with the customer to hold Kaizen events and quantify process improvements within the parts-distribution network
- Presented a key Kaizen finding at headquarters and was recognized for dramatically improving the rate of error-free shipping