Achieving ROI through Automation: Iron Mountain’s Success Story with Dexory
Achieving efficient, accurate, and agile warehouse operations is crucial for maintaining customer trust and meeting fast-changing demands. Iron Mountain, widely recognised for its expertise in information management, recently expanded into 3PL warehousing with a fresh approach centred around automation and data-driven decision-making. Through a partnership with Dexory, they transformed inventory management across their UK warehouse network, achieving significant operational efficiencies and measurable returns on investment (ROI).
Iron Mountain's transition into 3PL warehousing
Iron Mountain’s journey into warehousing has been remarkable, building a new business arm with 13 warehouses across the UK and Ireland, totalling 2.4 million square feet and capable of storing over 420,000 pallets. As a relatively new entrant in the 3PL sector, Iron Mountain faced several logistical challenges: accurately managing inventory across multiple customer accounts, optimising space in high-demand facilities, and delivering fast, reliable service. Dexory’s automation solution provided a seamless path to address these challenges while supporting their operational agility.
Key ROI benefits of Dexory's automation solution
Reduced labour costs and productivity gains
Traditionally, warehouse operations rely heavily on manual cycle counting and inventory checks, requiring dedicated teams to perform repetitive tasks. Dexory’s autonomous robotics dramatically reduced the need for these manual processes. By automating inventory scans, Iron Mountain achieved rapid cycle counting, freeing their workforce to focus on value-added activities. This shift not only cut down on labour costs but also improved employee productivity and job satisfaction, as staff could focus on more critical tasks rather than mundane, error-prone counting.
Error reduction and faster issue resolution
Inventory errors are a costly disruption in logistics, leading to delayed orders, mispicks, and unnecessary investigations. With DexoryView, Iron Mountain achieved near real-time visibility into their inventory, reducing the likelihood of errors and making it faster to correct any discrepancies.
In traditional warehouses, investigating an error can involve several steps, from locating missing pallets to verifying data, costly in both time and resources. DexoryView platform provided a 15-minute correction turnaround, thanks to rapid data access, compared to the standard 20-minute industry average. This efficiency led to faster order processing and fewer delays, boosting overall customer satisfaction.
“Every time an operator finds an error in the warehouse, it takes time to investigate and rectify it. We calculated around 15 minutes to fix each error, and even though the industry average is closer to 20 minutes, we were conservative. Ultimately, it worked out like a no-brainer, it made perfect sense, with all the benefits, not just the pure numbers.”
Maria Torrent-March, Warehousing and Logistics Strategy Director at Iron Mountain
Space optimisation and utilisation
Iron Mountain needed to maximise its capacity while accommodating varied customer needs. DexoryView enabled real-time monitoring of space occupancy, pallet layout, and racking adjustments, ensuring optimal utilisation. With clear data on current occupancy and future demand forecasts, Iron Mountain could make informed decisions on racking configurations, pallet placements, and overflow management. The solution provided a full view across all their sites, allowing Iron Mountain to allocate space strategically and respond swiftly to capacity changes.
Strengthening customer relationships through transparency and data accuracy
Dexory’s solution gave Iron Mountain a unique competitive advantage: unparalleled accuracy and transparency. For customers, accurate inventory data and swift order fulfilment are critical to maintaining lean operations and just-in-time delivery schedules.
DexoryView integrated seamlessly with Iron Mountain’s existing WMS and those of its customers, ensuring consistency and up-to-date data across all stakeholders. This transparency enhanced customer confidence, positioning Iron Mountain as a proactive and trusted partner in supply chain logistics.
Moreover, the level of visibility provided by DexoryView’s digital twin technology offered Iron Mountain valuable insights into customer behaviour and inventory trends. For instance, they could identify which customers frequently required additional space, plan for seasonal fluctuations, and adjust racking heights based on recurring pallet dimensions. This data-driven approach allowed Iron Mountain to support its customers’ evolving needs more effectively, delivering an agile, client-centric service model.
A scalable, future-ready solution
One of the standout features of Dexory’s solution is its scalability. Iron Mountain’s warehouses vary from dedicated facilities for specific clients to shared spaces serving multiple accounts. As Iron Mountain expands its footprint, they can easily replicate DexoryView across additional sites, whether in the UK or globally, without significant upfront investment or prolonged deployment timelines. This adaptability is critical as Iron Mountain anticipates expanding its automated solution into other regions to support the growing demand for faster, more transparent warehousing solutions.
“When people think about automation projects, they think about long timelines to see benefits, but we addressed that head-on to provide value very quickly. With Dexory’s solution, within five days on site, we’re already giving users their first real look at exactly what’s in their warehouse.”
Oana Jinga, CC&PO and Co-founder of Dexory
Building a strong business case for automation
The financial benefits of DexoryView became apparent early in the deployment. Iron Mountain built a strong business case by comparing traditional labour costs for manual inventory management with the efficiency of Dexory’s automation. They calculated the savings from reduced error investigation times, lower labour demands, and higher productivity, presenting a clear path to ROI within months rather than years.
Furthermore, intangible benefits, like improved customer trust, safety from reduced manual checks, and enhanced reputation for innovation, strengthened Iron Mountain’s position in a highly competitive market.
Conclusion: A partnership driving innovation in warehousing
The partnership between Iron Mountain and Dexory exemplifies how automation, when thoughtfully implemented, can transform traditional warehouse operations. With DexoryView, Iron Mountain didn’t just achieve operational efficiency, they set a new standard for 3PL service excellence, characterised by accuracy, transparency, and responsiveness. As they continue to expand, Iron Mountain’s data-driven model will allow them to scale confidently, setting a strong example for innovation and value creation in the logistics industry.
