Ferguson PLC, a leading distributor of plumbing and heating products in the US and Canada, has a vast supply chain that sources goods from 36,000 suppliers out of 30 nations. With over a million products ranging in size from small copper fittings to 40-foot pipes, Ferguson serves 9 specialist customer groups and operates through 3 import centers, 14 distribution centers, 106 final-mile shipping hubs, and nearly 1,700 branch locations. The company boasts a fleet of 5,300 trucks ranging from semi-trucks to delivery vans, allowing for seamless delivery to customers across the region.
In an interview with Michael Jacobs, the senior vice president of supply chain at Ferguson, he discussed the company’s innovative approach to enhancing its distribution network. Ferguson has implemented a market distribution center strategy to enable efficient same-day and next-day deliveries to customers in major metropolitan areas. By positioning inventory closer to customers and leveraging new technologies such as AutoStore robotic systems, Ferguson has greatly improved its picking speed and productivity. The company’s goal is to provide a seamless and efficient customer experience while reducing the number of touches throughout the supply chain.
The AutoStore solution, which features dense grid structures containing robotic bins that retrieve products for orders, has proven to be a scalable and cost-effective solution for Ferguson. With a payback period of just over three years, Ferguson has seen significant improvements in productivity and customer satisfaction since implementing the system. By marrying robotics with mechanization and sortation, the company has been able to streamline its operations and provide customers with faster service and access to inventory.
Ferguson’s collaboration with vendors and consultants such as Körber Supply Chain Solutions and TGW has been instrumental in implementing cutting-edge technologies like AutoStore and shuttle systems for order fulfillment. Additionally, the company’s focus on customer service and satisfaction has led to improvements in Net Promoter scores and overall satisfaction levels. With a commitment to delivering simple, successful, and sustainable solutions to customers, Ferguson has positioned itself as a trusted partner for complex projects and large-scale initiatives under various US government-funded bills.
The company’s dedication to innovation and continuous improvement in its supply chain operations has not only resulted in higher customer satisfaction but also set the stage for future growth and expansion. By investing in cutting-edge technologies, reconfiguring its distribution network, and prioritizing customer service, Ferguson has solidified its position as a leader in the plumbing and heating products industry. With a strong focus on customer satisfaction and project excellence, Ferguson is well-positioned to capitalize on opportunities in the market and continue its success in the years to come.
