Thinklytics

XPO Logistics Regional Division · Manufacturing · Dallas, TX · 16 weeks

7 warehouse management systems consolidated into one

A regional logistics company operated seven separate warehouse management systems from past acquisitions, causing fragmented inventory data and slow order fulfillment, averaging 3.1 days. We consolidated all warehouse data into one unified platform, which cut logistics costs by $2.2 million annually and brought fulfillment time down to 18 hours.

Challenge

Seven distribution centers operated with seven different warehouse management systems, each added through separate acquisitions. This caused fragmented inventory data, no coordinated routing between sites, and inconsistent order tracking. Orders took an average of 3.1 days to fulfill. Maintaining these separate systems cost $2.2 million annually.

Approach

We consolidated data from seven WMS systems into a single Snowflake platform to create a real-time, unified inventory view. Then we developed a fulfillment dashboard that tracked order status, inventory, and routing efficiency across nine distribution centers, enabling informed decisions on cross-facility shipments.

Outcome

We launched the unified logistics platform in week 16. This cut the annual WMS cost from $2.2 million to $480,000. By optimizing routing across facilities, we shortened average order fulfillment from 3.1 days to 18 hours. We also replaced 24-hour batch updates with real-time order status, improving customer visibility.

How We Cut Costs and Got Shipments Out the Door Faster by Adjusting Facility Routes

We grabbed inventory data from all the locations. That let our routing system send orders to the nearest place that actually had the item, instead of just going to the original spot. That small change shaved 1.4 days off fulfillment time.

How We Tracked Orders in Real Time to Keep Customers from Dropping Off

So, our clients kept pushing for quicker updates on their orders. Instead of sticking with daily batch updates, we flipped the switch to real-time order status. It made a huge difference. Frankly, three of our top customers were almost ready to walk away, but this move convinced them to stay.

How We Merged Warehouse Systems and Cut Costs Big Time

We killed off 4 of the 7 WMS platforms. That cut our yearly maintenance from $2.2 million down to $480,000, huge savings. The other 3 stuck around, but just to feed data into the new, combined system.

Results

  • $2.2M Annual logistics cost saved
  • 3.1 days to 18 hrs Order fulfillment time
  • 7 to 1 WMS systems consolidated
  • 16 wks Full platform delivery

We were using seven different systems and couldn’t get a clear view of our inventory. Thinklytics helped us bring it all together, and we reduced our fulfillment time from three days to 18 hours. Having that real-time visibility also convinced three customers to renew their contracts.

VP of Supply Chain Operations, Regional Logistics Provider

In the client's terms

The question

What breaks when these systems become one?

The situation

Seven distribution centres on seven warehouse management systems, all inherited through acquisition. Inventory data was fragmented, routing between sites was uncoordinated, and order fulfilment averaged 3.1 days. The seven systems cost $2.2M a year.

What we found

The fulfilment time was not a warehouse performance problem. No single system could see stock at another site, so cross-facility routing was impossible and every order was served from wherever it landed.

What it produced

Live in week 16. WMS cost fell from $2.2M a year to $480K. Average fulfilment fell from 3.1 days to 18 hours. Order status moved from 24-hour batch to real time.

The roadmap

All seven systems were consolidated into one Snowflake platform giving a real-time unified inventory position, which is the precondition for routing at all. A fulfilment view was built on top covering order status, inventory and routing efficiency across the network, so cross-facility shipping decisions have something to be made from.

The work behind this result

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Frequently asked questions

How do you cut order fulfilment time across distribution centres?

Make inventory visible across the network first. XPO's regional division ran seven warehouse systems with no shared view, so cross-facility routing was impossible. Unified inventory took average fulfilment from 3.1 days to 18 hours.

Do you have to replace every warehouse management system?

No. Four of the seven were switched off here, taking annual maintenance from $2.2M to $480K. The remaining three stayed in place as data sources into the consolidated platform rather than being replaced for the sake of it.

What do customers actually notice from a logistics consolidation?

Order visibility. Daily batch updates were the sticking point here and three of the largest accounts were close to leaving over it. Real-time status is what kept them.