The partnership with XPO will continue to drive the ASOS global service proposition, creating an efficient, customer-focused experience and supporting our mission to become the world’s number one online destination for young fashion.
ASOS, a flagship brand in the world of online fashion, needed a global distribution center where garments and accessories could be stored, sorted and shipped to over 230 countries. As a pure-play e-tailer with over 6.5 million active website users, ASOS sought a logistics provider with significant expertise in e-fulfillment and the ability to continuously improve service levels. The company also looked for project management experience to support its growth, a successful track record in large, complex implementations and a proven ability to manage cultural engagement during staffing changes.
As ASOS’s selected provider, we began by transferring approximately 2,000 ASOS colleagues to XPO’s payroll, launching a “hearts and minds” campaign to ensure retention and development. Throughout this process, we took measures to ensure continuity of service levels. Within the first contract year, our teams completed a 70,000m2 extension to the distribution center, doubling the storage capacity while increasing the square footage by 25%. We also installed two parcel sorters with a weekly throughput capacity of 2.7 million items, and a pouch sorting system to feed packing benches.
Project management, including site expansion and automation, was exclusively in the hands of XPO teams. By re-energizing an experienced ASOS workforce under XPO management, we were able to reduce turnover versus historical benchmarks at the facility, while picking costs and accuracy improved significantly. The extension to the distribution center increased capacity by 50%, and the new sorters improved throughput by 20%. These results were achieved with close collaboration between XPO and ASOS during planning and implementation.