Inventory Management in the Luxury Fashion Industry

2022.02.14

Do you have the right inventory in the right place at the right time?

Discover our exclusive business case with a global manufacturer of luxury apparel

GEODIS engineered an efficient logistics network for a leading global manufacturer of luxury apparel in APAC, the Americas and Europe.

 

GEODIS has helped to fulfill the ambition of one of the world’s leading manufacturers of luxury apparel. The international retailer was facing the challenge of having the right inventory in the right place at the right time.

With the rise of e-Commerce as a major channel after Retail and Wholesale, the brand wanted to convert their distribution centers to omni-channel operations, enabling their customers to gain access to their products from anywhere and with shorter lead-times.

They were looking for a logistics partner that could support their worldwide expansion.

 

A global study to optimize the retailer’s logistics network

Customer challenges

 

Optimize the logistics network

Challenge the current logistics setup and propose an optimized ‘to-be’ configuration encompassing the overall optimization of transportation and warehouse costs while improving service levels.

 

Create faster turnaround

Align lead-times to demand and optimize overall outbound costs, taking into consideration growth plans in terms of markets (countries), B2B and B2C over a period of 5 years.

 

Increased competition

The brand faced increased competition in a market that demanded faster delivery times.

Implemented solutions

 

GEODIS’ logistics engineering team identified order volume hot spots in terms of stores, wholesalers and e-Commerce, and compared them with the brand’s current logistics network.

The team used a technology-based approach to compare the current logistics setup globally with potential locations. They used several criteria to do this: warehousing and transportation costs, as well as average lead times to stores/wholesalers and final customers.

Based on this study, several scenarios were developed including these for the USA and Europe.

Expected Created Value for retailers 

Expected created value for retailer