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Magna Valor
Magna Valor

Opening Fulfillment Center for major e-commerce

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Our client is a pure e-commerce retailer selling light & small products across Europe

CapabilityNew fulfillment center opening managementShare

Challenge

A multi-billion e-commerce company, growing 40% year-over-year during the pandemic, aimed to expand its warehouse network by adding a Fulfillment Center (FC) in Central Europe. The new FC needed a minimum weekly capacity of 1.1 million orders. The main constraints were tight timelines and limited resource availability, as the decision was made in March with a target GO-LIVE before the Christmas peak the same year.

Actions

To meet the capacity and timing challenges, the company executed an ambitious project:

  • Strategic Planning – Analyzed expected product flows to design FC layout and processes meeting performance targets. Order profiles, service level goals, and current processes were assessed to optimize the FC design.
  • Equipment Selection – Installed MHE suitable for processes and available within strict schedule, including flexible picking racks, soft-belt conveyors, and packing stations compliant with company standards.
  • Project Management – On-site management ensured plan execution, team building, and training. Continuous stakeholder coordination involved Supply Chain, Operations, and Commercial functions to guarantee seamless opening.

Results

  • On-Time Completion – First inbound delivery received in October, first customer order fulfilled in November.
  • Capacity Achieved – FC reached 1.2 million orders per week with a 22/7 staffing schedule.
  • Workforce Prepared – 800 fully trained employees before Christmas peak, with capacity for additional 140 staff if needed.
  • Improved Performance – Reduced customer delivery time by 1.2 days.
  • Seamless Operations – First peak completed without operational delays, zero accidents in first 60 days despite new equipment and staff.

Summary

Within 8 months, a 37,000 m² Fulfillment Center was successfully opened. Through strategic planning, careful equipment selection, and strong project management, the company achieved 1.1 million weekly order capacity, employed 800 associates, supported business growth, and reduced delivery times by 1.2 days, all while maintaining safe and uninterrupted operations.