Superhub / Forward Stocking Location

End-to-End Operating Model — Cloud Supply Chain & Global Operations
1–2d
Transit SLA
93%
US Coverage
~$30M
CapEx Savings
5,560
Total Positions
Legend
Physical move
System / ERP
Exception
Decision
System signal
Physical doc
Freight move
1
Plan & Forecast
IBP demand planning
2
Build & Replenish
SI Factory → FSL
3
Store & Manage
FSL warehouse ops
4
Distribute
FSL → Data Center
5
Receive & Live
DC dock → install
🏭
System Integrator
Ingrasys · Wiwynn · Lenovo
Quanta · ZT
5 SIs · 19 factories
~2 WEEKS
1
Build FG Racks
Manufacture L11 Storage, Compute, GPU racks at SI factory per Build Order
Build OrderProduction
2
Serialize & GR
RSN assignment, goods receipt, as-built BOM/genealogy
ASNOBD
3
STO Collaboration
Ack STO from MSFT, prep outbound shipment
STO AckPGI
Route Decision
~70% direct to DC
~30% through FSL
IFS/IBP + OFM
Return & Rework
Returns from FSL; rework/disposition
📊
Microsoft
CSCP · SCOM · SCOPe
IFS · SAP IBP
Planning & ERP
P1
FG Demand Forecast
IBP generates inventory plan; automated WH levels
IBP Plan
ERP
P2
Create STO
Stock Transfer Order: SI Factory → FSL
STO via SAP
P3
IFS/IBP Routing
FSL vs Direct; OFM human-in-loop
OFM Approval
RDD
P4
Create Ship PO
Ship PO when DC calls for inventory (RDD)
Ship PO
P5
Invoice & Settle
P2P; FG on SI books until DC GR → MS books
InvoiceAsset Xfer
🚚
TMC / RMS
Managed Freight
(MMF)
All FSL freight
4
Book Inbound
Assign carrier, schedule SI factory pickup
Carrier Booking
GROUND
REGIONAL
5
Inbound Transit
Ground trucking SI → FSL (no cross-border)
In-Transit
10
Book Outbound
Assign carrier, schedule FSL pickup
Carrier Booking
1-2 DAYS
1-2 DAYS
11
Outbound Transit
93% US DCs ≤2d; hero regions 100%; cross-border 3-5d
In-Transit
🏢
3PL Warehouse
DSV / DBS
Cherry Valley IL
Venlo NL
6
Receive & Inspect
Verify RSN, condition, qty vs STO
GR Confirm
7
Store (FIFO)
US: 2,160/3,300
EMEA: 2,260 pos
On SI books; non-valuated
WMS
8
Inventory Mgmt
Cycle counts, adjustments, state transfers, holds
Adj/Count
24 HRS
9
Pick, Prep & Stage
DC calls → DSV picks per Ship PO; stages for load
OBD ≥1d prior
Returns to SI
Rework/damage → blocked stock → STO back
🏗
Data Center
CO+I · DC Ops
150+ Global DCs
End customer
12
Dock & Receive
GR at DC; FG → MS books; asset settlement
GRInvoice
13
Install & Go Live
Rack install → W2L live; RSN lifecycle complete
W2L Live

🎯 Purpose & Business Case

  • Reduce DC delivery transit from 5-7 days → 1-2 days
  • Enable Warehouse to Live (W2L) build-to-stock model
  • Support +25% YoY cloud demand with improved predictability
  • Deliver CapEx savings by reducing in-transit inventory
  • Reduce carbon emissions ~60% via consolidated distribution

📈 Key Performance Metrics

FSL → DC Transit1-2 days (93% US)
Hero Regions100% ≤ 2 days
Prior Baseline5-7 biz days
Volume via FSL~30%
CapEx Savings~$30M
Transport Savings$4M-$8M/yr
CO2 Reduction60%

🏛 Governance

  • US Ops: Horacio Ochoa Gomez
  • EMEA Ops: Altani Blakos
  • 3PL: DSV/DBS (both sites)
  • Freight: MMF via RMS/TMC (all legs)
  • Inventory: SI books until DC GR
  • Trade: SI is IOR/EOR at FSL
  • US Go-Live: Feb 2024 (Cherry Valley)
  • EMEA Go-Live: Sep 2024 (Venlo)

Scope

In Scope
  • L11 Storage, Compute, GPU racks
  • All 5 SIs (19 factories, 7 countries)
  • US FSL — Cherry Valley, IL
  • EMEA FSL — Venlo, NL
  • STO + Ship PO flows
  • Returns & rework
  • Serialization tracking (RSN)
Out of Scope
  • T2 component hubs (Arrow/DSV VMI)
  • India / Brazil / Australia FSLs
  • SI-managed freight (WWT)
  • Build order execution

Key Abbreviations

FSL — Forward Stocking Location
STO — Stock Transfer Order
Ship PO — Ship Purchase Order
ASN — Adv. Shipment Notice
OBD — Outbound Delivery
GR — Goods Receipt
PGI — Post Goods Issue
RSN — Rack Serial Number
MMF — MS Managed Freight
W2L — Warehouse to Live
BTS — Build to Stock
BTO — Build to Order
IOR/EOR — Importer/Exporter of Record
IBP — Integrated Biz Planning
IFS — Intelligent Fulfillment Sys
RDD — Requested Delivery Date
Source: FSL Architecture Design Review + BCL Interview (Aaron Bowman, May 2026) | BCL Domain: superhub-fsl (PR #110) | MICROSOFT CONFIDENTIAL