‘Fulfilment by 3PL’ trends well for leading online clothing retailer
Client Profile: Our client specialises in sourcing Men’s designer clothing and fashion accessories, retailing online at discount prices and have been trading online since 2004. At the time of integration the profile of the account was a follows:
- 8,000 units in stock
- 1,500 different product lines
- Fulfilment of between 750 and 1,000 orders per month.
The decision to outsource its storage and order fulfilment was largely driven by the common constraints of both time and space. There is insufficient time for sourcing and marketing and insufficient space for growth as previously operating from home and garage.
Lorem amounts of time were being devoted to picking, packing and customer service type activities, restricting growth. Customer enquiry response times were too protracted.
Storage space was disjointed whilst non/ slow moving lines were not pro-actively managed
Supplier inbound wasn’t clearly identifiable and discrepancies often overlooked. The turnaround times on inbound from point of arrival to point of availability were also elongated.
Closing the gap
Phase 1 – Stabilise
Following a detailed integration plan aimed at achieving a seamless transfer of stock, the first batch of 500 SKUs were dispatched on the Friday and received at 3PL across the weekend. By Monday, the opening stock balances were acknowledged and fulfilment operations commenced.
Phase 2 – Growth
Working with 3PL, our client realised increased efficiency through reduced wastage.
- Inbound compliance – remove supplier identification, insert discount vouchers, apply bar coding.
- Returns management – process returns on a same day basis, conduct QC inspections
- Back order management – switch on the facility to automate within the Warehouse System.
- Order fulfilment – day 1 for 1 processing on all orders
- Customer care – a dedicated contact improving response times
- Management information – SKU analysis, tracking id. End of business reporting ins/outs and stock
Within the first eight months our client’s business is realising its potential.
Profile of over 2,000 orders per month on average, representing over 100% uplift on since integration.
Transparency & Coordination
Better availability and services to customers.
Improved supply chain
Leaner stock holding relative to demand
I must mention the feedback I am getting from my customers is excellent. They regularly comment on the speed of delivery and must admit although I used to send out my goods within 24 hours yours seem to reach my clients quicker!