As an increasing number of logistics leaders aim for hyper-growth, their tools and strategy can either be a revolutionary stepping stone to dominance or a recipe for disaster.
For the global supply chain leader Flexport, however, aiming to scale successfully became a defining opportunity. By strategically adopting Logiwa’s AI-driven WMS, Logiwa IO, Flexport saw a remarkable 100% growth in its network, transforming fulfillment operations from chaos into a finely tuned example of fulfillment orchestration.
Read on to learn about the challenges Flexport faced when aiming for logistics growth, how and why it partnered with Logiwa, the gains Flexport unlocked, and the key takeaways for logistics leaders.
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The challenge of scaling successfully in logistics
In the logistics industry, rapid growth presents both opportunities and risks. Here’s how one global leader navigated those challenges.
Flexport’s vision to modernize a fragmented supply chain
With over 5 million square feet of warehousing space, more than 1,500 associates (with plans to double that headcount), and millions of orders shipped each month, Flexport is a global supply chain and logistics provider with a mission to simplify and modernize the supply chain.
However, as Flexport’s network expanded, its leadership realized that traditional approaches to warehouse management couldn’t keep up with merchant demand, evolving fulfillment requirements, and the company’s own growth targets. As a result, leaders began exploring new tools and partnerships that could help modernize the company’s fragmented supply chain.
The tipping point: transitioning to a 1P network
Flexport reached a tipping point when it transitioned from a third-party (3P) network to a first-party (1P) fulfillment network. This change meant moving from outsourced facilities to owning and operating every U.S. warehouse in its network.
Although this change brought greater control, it also introduced new challenges. As Cody Moreland, Senior Director of Fulfillment at Flexport, put it, the early days of the transition were “really like herding cats.” Among the challenges faced:
- Lack of structure: “Everyone was running around,” said Moreland. “We really had no sophisticated way to organize our warehouse.” This led to disjointed operations that hindered coordination and efficiency across the network.
- Disjointed operations: Processes varied depending on facility, making it hard to maintain consistent performance across the network.
- Scaling limitations: Flexport’s existing 3PL systems weren’t equipped to handle the increasing volume and rapid expansion of its new 1P network.
- Cost management issues: Inefficient workflows and inconsistent labor utilization drove up per-unit costs.
- Suboptimal picking: Average pick productivity rates were around 15% lower than industry benchmarks, resulting in slower order fulfillment and increased operational costs.
To succeed while scaling up, Flexport needed an AI-powered tool that could bring order to its expanding network without disrupting daily operations.
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Partnering with Logiwa
Realizing they needed advanced technology to expand without disrupting daily operations, Flexport set out to find a platform that considers current and future growth. That led the company to Logiwa IO, a cloud-based fulfillment management system (FMS) designed to optimize warehouse operations, inventory management, and order fulfillment. An upgrade from traditional WMS, Logiwa IO provides an agile, scalable solution for growth-minded 3PLs.
Why Logiwa IO? Key differentiators
Flexport picked Logiwa IO over other WMS solutions for several reasons:
- AI-driven optimization: Logiwa IO’s intelligent algorithms orchestrate complex warehouse operations in real time. They generate pick paths, help monitor on-ground activities to optimize workforce management with labor standards, and more.
- Intuitive user experience: Thanks to its simple, modern interface, Flexport was able to onboard over 1,500 associates on Logiwa IO in just 6 months.
- Proven scalability: Logiwa IO demonstrated the ability to launch new warehouses in days, not months. As such, Flexport was able to expand on schedule.
- Collaborative partnership: Logiwa IO stood out for its client-centered approach. It worked closely with Flexport to design customized operational blueprints, ensuring the technology aligned perfectly with Flexport’s fulfillment model.
A symphony of operations: The Logiwa IO transformation
The results were immediate and dramatic. As Cody Moreland, Senior Director of Fulfillment, Flexport, put it, “Before Logiwa IO, it was really like herding cats… Now it’s really like a symphony. Everything is extremely orchestrated.” Thanks to Logiwa IO, every associate now has clear responsibilities. Additionally, workflows are transparent, and new warehouses are quickly onboarded in an average of just six weeks.
Unlocking unprecedented efficiency and savings
With every warehouse running in sync thanks to Logiwa IO, Flexport started achieving unprecedented gains, including the following.
Achieving 100% network expansion
After adopting Logiwa IO, Flexport achieved over 100% network growth in just a few months. With Logiwa IO’s AI optimization capabilities, the company could keep up with surging order volumes while maintaining high service standards.
Logiwa IO optimized pick paths for faster order processing, dynamically balanced workloads across facilities, and prioritized tasks in real time to prevent bottlenecks. These warehouse automation features kept operations fast, accurate, and consistent, making it easy for Flexport to scale rapidly without sacrificing speed or quality.
Boosting productivity & bottom line for a 15% pick rate
Another significant gain Flexport experienced after adopting Logiwa IO was a 15% increase in pick productivity across the network. This translated into $0.10 savings per item, or $1,300 saved for every 10,000 order lines—savings that Flexport passed back to its merchants.
Much of these gains came from the transition from a 1D to 2D AI-optimized picking environment, where Logiwa IO dynamically adjusted routes and workflows to maximize efficiency.
Rapid implementation & future-proofing
Logiwa IO has also empowered Flexport to bring new warehouses online in just six weeks. This dramatically reduced the lag between securing new facilities and going live.
Due to Logiwa IO’s AI-driven job optimization and tech-enabled analytics, Flexport’s systems will remain future-ready. In other words, they will easily adapt to new merchant needs, whether that’s wholesale expansion, customized returns, or kitting.
Key takeaways for logistics leaders
Logiwa IO is built to empower growth-minded 3PLs to reach their goals. Here are the key takeaways for logistics leaders aiming to achieve the kind of explosive growth Flexport experienced.
Choose a strategic WMS partner
First, you need to choose the right WMS partner. Besides meeting your current needs, your chosen WMS should also be equipped to handle your business’s needs in the coming years. Additionally, your partner should go beyond just providing software. They should also offer a dedicated team that listens to and understands your challenges, and works with you as a consultant and collaborator.
Embrace AI for optimal performance
These days, AI is essential for real-time decision-making, productivity gains, and lower costs. Accordingly, you need to choose a vendor with top AI tools and implement these functions into your business strategy to unlock gains. Examples include AI-driven pick paths and predictive labor allocation.
Prioritize user-centric design
Pick an AI-driven WMS with an easy-to-use and user-centric interface. Even the most powerful WMS delivers little value if your team struggles to use it. A well-designed interface translates to faster onboarding, fewer errors, greater employee satisfaction, and sustained efficiency—all essential for scaling successfully.
Build for seamless scalability
Finally, your chosen WMS should be built for seamless scalability. In other words, it should scale effortlessly as you add warehouses, expand into new markets, and diversify fulfillment offerings. Otherwise, growth will strain your systems, create operational bottlenecks, and undermine service quality.
Orchestrating the future of fulfillment
Before adopting Logiwa IO, Flexport struggled with disorganized warehouse operations that limited efficiency and growth. However, since adopting this powerful supply chain technology, Flexport has achieved breakthrough results—including a 100% network growth—and built a more scalable and efficient operation.
Want to see the full transformation in action? Watch the Flexport success story video or read the complete case study to learn how they achieved 100% network growth with Logiwa IO. If you’re ready to transform your logistics operations like Flexport did, consult Logiwa’s experts today.
