How Is Luton Airport Streamlining Its Supply Chain?

How Is Luton Airport Streamlining Its Supply Chain?

With decades of experience in management consulting, Marco Gaietti is a seasoned expert in Business Management, specializing in strategic operations and customer relations. As airports grapple with surging passenger numbers, the logistics behind the scenes—from stocking luxury boutiques to supplying bustling restaurants—have become more complex than ever. We sat down with Marco to discuss London Luton Airport’s new partnership with GXO Logistics, exploring how their first-ever consolidation center is set to revolutionize airside operations. Our conversation delves into the specific challenges driving this change, the cutting-edge technology ensuring shelves stay stocked, the tangible benefits for retailers, and how this project fits into the airport’s larger vision for growth and efficiency.

London Luton Airport is addressing rising passenger numbers with its first consolidation center. What specific operational challenges prompted this move, and how will centralizing hundreds of thousands of deliveries improve efficiency and security for airside operations?

The decision was born from a very real and growing pressure point. When you see passenger numbers climb from 16.7 million to over 17.5 million in just a year, the ripple effect on logistics is immense. Imagine the sheer volume of uncoordinated deliveries for over 40 shops and restaurants, all trying to access a secure, tightly controlled airside environment. This creates congestion, security vulnerabilities, and scheduling nightmares. By creating a single, purpose-built hub, you’re imposing order on that chaos. Every item, whether it’s high-end fashion or fresh food, now goes through one dedicated screening point. This streamlines the entire process, making it not just more efficient but fundamentally more secure. It transforms a complex web of individual deliveries into a single, managed, and predictable stream of goods.

You’re implementing the bespoke IT system, STREAM. Could you walk us through how its real-time alerts and dynamic scheduling will help retailers maximize revenue, and what specific metrics you’ll use to measure its success in improving on-time delivery?

STREAM is the digital brain of this entire operation. For a retailer, its value is immediate and tangible. Let’s say a cosmetics counter is running low on a popular perfume. The system doesn’t just track the replacement order; it provides real-time alerts and allows for dynamic scheduling. If there’s an unexpected disruption, like a flight delay affecting terminal traffic, we can adjust the delivery schedule on the fly to ensure those high-priority items still arrive precisely when needed. This keeps shelves stocked and prevents lost sales, which directly maximizes revenue. To measure success, we’ll be laser-focused on metrics like on-time, in-full delivery rates. We’ll also track the reduction in stock-out incidents reported by retailers and the overall time from an item’s arrival at the center to its placement on a store shelf. The accurate performance data it generates is gold for continuous improvement.

For LLA’s concessionaires, what does the new 24/7 customer service support look like day-to-day? Can you provide an example of how a restaurant or shop owner would use this service to troubleshoot a delivery issue more effectively than before?

The new support system is a complete departure from the old way of doing things. In the past, a restaurant manager dealing with a late delivery of fresh ingredients might have had to make a dozen calls with no clear answers. Now, it’s a single point of contact. Let’s say that manager sees via a real-time tracking notification that their delivery is delayed. They can immediately contact the dedicated 24/7 service team. That team has full visibility into the entire supply chain, from the consolidation center to the terminal. They can pinpoint the issue, provide an accurate ETA, and if necessary, work to expedite the delivery. It’s about replacing uncertainty and frustration with clear communication and proactive problem-solving, which is absolutely critical in a time-sensitive airport environment.

GXO has operated airport consolidation centers since 2006. Based on that experience, what are the most common logistical hurdles in a complex airport environment, and how is this new partnership designed to proactively address them from day one?

Having operated in this space for nearly two decades, you learn that airports are unique ecosystems with zero margin for error. The most common hurdles are always security compliance, managing unpredictable peaks in demand tied to flight schedules, and the physical constraints of operating in a secure, high-traffic area. This partnership addresses these head-on. The purpose-built consolidation center is designed specifically for stringent security screening, eliminating a major bottleneck. The use of the STREAM IT system allows for dynamic scheduling to absorb those peaks in demand. And by centralizing deliveries off-site, we remove a significant amount of vehicle traffic and logistical complexity from the airside environment itself, which is a massive operational win from the very beginning.

The new center is part of a larger £11.5 million refurbishment program that repurposes hangars and creates 150 jobs. Could you elaborate on how this facility fits into the airport’s broader development goals and enhances its overall operational capacity?

This consolidation center isn’t an isolated project; it’s a cornerstone of the airport’s strategic vision for growth. The £11.5 million investment to repurpose these hangars is about building a foundation for the future. By creating this streamlined logistics hub, LLA is freeing up valuable airside real estate and resources. This enhanced operational capacity allows them to confidently welcome new retailers and food outlets, like the five that opened in 2025, knowing they have a robust supply chain to support them. Furthermore, creating 150 new jobs demonstrates a commitment to local economic development. It’s a smart, integrated approach—improving today’s efficiency while simultaneously paving the way for tomorrow’s expansion.

What is your forecast for the role of consolidation centers in the airport sector over the next five years?

I believe they will become the industry standard, not just a value-add. As passenger numbers continue to rebound and grow globally, the pressure on airport infrastructure will only intensify. Airports can’t simply build more roads or expand security checkpoints indefinitely. The next frontier for gaining efficiency is in smarter, more centralized logistics. Over the next five years, we’ll see more airports adopting this model to enhance security, reduce their carbon footprint by minimizing vehicle movements, and provide a more reliable service to their retail and food partners. Consolidation centers will evolve from a competitive advantage to an operational necessity for any major airport looking to thrive.

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