GSI Commerce

Situation

GSI had reached a capacity limitation in their two current facilities in storage and outbound volume, and needed to increase this ability to support their future growth with new partners and organic growth with current partners.

The staffing demands with a DTC environment created a large demand on short term labor which created a human resource issue.

With the volume growth, one of the current facilities required them to hire 1,200 additional people to meet peak demand.

Solution

To combat the capacity limitation, GSI strategically decided to open a third DC for their network.

AHS's Design Team utilized the Forward Motion Process to ensure the facility would operate in the most efficient manner and handle future growth of the company during off and peak season.

To minimize the staffing demand, they chose to utilize a batch pick and sort operation instead of the cluster picking process they had used in their previous facilities.

During the design process, AHS engineered an automated solution to handle a wide array of GSI's high volume partner's DTC fulfillment needs.

Result

Designed and built facility to increase network storage capacity by over 65%.

The ROI model justified the automation costs based on reduced labor costs by outbound efficiencies.

The new facility increased the capability over the entire GSI fulfillment network.
Increased overall network outbound capacity by over 100% on peak day.

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Project Snapshot

	Client Name: GSI Commerce Location: Richwood, Kentucky Facility Size: 550,000 Square Feet Timeline: Design: 12 Weeks Implementation: 14 Weeks Commissioning: 25 Weeks Successful Projects Implemented: 10 Years Servicing Client: 2 Vertical Market: 3PL

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