OVS is Italy’s largest clothing and accessories retail group, with 1,200 stores across the country and a multi-brand online presence. XPO Logistics has been the group’s logistics and transport provider since 1999. OVS knew it could rely on XPO’s technological expertise when consolidating its warehousing into a single, high-tech distribution centre in Pontenure, near Milan.
XPO and OVS collaborated during two years of planning for the consolidation, creating a roadmap that included specific improvement projects focused on automation and other operating efficiencies. The goal was to merge the company’s three Italian warehouses into a single 85,000m2 distribution centre. The new site opened in 2010 and has been followed by several automation integrations, including four automated sorters for flat and hanging garments. In early 2016, we added state-of-the-art, multi-shuttle automation that receives all inbound and reverse flows, sorts the items for storage and manages retrieval for stock replenishment in stores. We deliver to approximately 250 stores across Italy daily for OVS, using trailers that are specially equipped for hanging garments. Recently, we began handling all of the group’s e-commerce logistics, using cutting-edge technology and our global e-fulfillment expertise.
The automations at the Pontenure distribution centre have allowed OVS to achieve substantial cost savings while increasing sales. Retail stock levels are tracked and managed more effectively with multi-shuttle technology, leading to better demand planning. Now OVS and XPO will work together to apply similar innovations to the group’s online business and expect to achieve further strong results.