How Much a Zero Return Rate Would Improve the Bottom Line of Online Apparel Business (% of Respondents)
The implementation of auto-bagger technology, which automatically bags ecommerce purchases, more than doubled packing productivity while improving outbound shipping efficiency. “Our decreased use of packing materials and plastics is intended to reduce waste and use of landfills,” Barta adds. MANAGING INVENTORY AND SUPPLIERS Balancing inventory to meet customer demand without overstocking or understocking is a major problem, especially with fluctuating demand patterns within sectors such as apparel, footwear, and mass merchandise, says Sunny Zheng, an analyst with Coresight Research, which focuses on the consumer sector. Retailers can use advanced analytics and artificial intelligence to forecast demand, optimize inventory levels and personalize the customer experience. Also key is a multi-supplier sourcing strategy, says Johann Grassi, consumer industries leader with Syntax, a technology solutions provider. This mitigates the risk that comes with depending on a single supplier. With multiple suppliers, a customer is less vulnerable to delays due to natural or geopolitical events or system breakdowns that impact a single vendor. LEATHER SKIN SHOP: A DATA-DRIVEN, EFFICIENT SUPPLY CHAIN Leather Skin Shop sells ready-to-wear and customized leather apparel through its website. “Our commitment to a data- driven and efficient supply chain is a pillar of our success,” says co-founder Peter Martinez. The company’s supply chain approach combines strategic partnerships, data-driven insights, and innovative software, all of which ensure agility and resilience, and help Leather Skin Shop thrive in a competitive marketplace. Leather Skin Shop sources products from an established network of trusted suppliers in Pakistan and India. Building strong relationships with a select group of
50% or more 40% to <50% 35% to <40% 30% to <35% 25% to <30% 20% to <25% 15% to <20% 10% to <15% 5% to <10% 1% to <5% 0% (no impact)
7% 7%
15%
67% of apparel brands and retailers think a zero return rate could improve the bottom line of online apparel businesses by at least 20%
10%
19%
9%
15%
10%
6%
1% 1%
Base: 100 decision-makers at U.S.-based apparel brands and retailers Source: Coresight Research
Leather apparel retailer Leather Skin Shop's supply chain approach combines strategic partnerships, data-driven insights, and technology to navigate a competitive marketplace.
suppliers in different locations minimizes dependence on any single partner, mitigating risk, Martinez says. It also enables Leather Skin Shop to leverage each partner’s strengths and specialties. For in-stock items, which account for about 85% of sales, Leather Skin Shop maintains a fulfillment center in Tualatin, Oregon. Custom-made products are crafted and shipped directly from the company’s workshops in Pakistan and India. To prioritize responsive inventory management, Leather Skin Shop leverages Shopify, Google, and Microsoft Clarity. Shopify Analytics provides valuable basic traffic statistics. Google
Analytics lets Leather Skin Shop analyze user behavior, track marketing campaign effectiveness, and gain insights into customer acquisition channels. Microsoft Clarity offers valuable visual recordings of user sessions, helping the company identify potential website usability issues and optimize the customer experience. Another tool, Assisty, functions as an advance forecasting system that analyzes historical sales data and lead times. This allows Leather Skin Shop to identify items at risk of going out of stock within a specific timeframe, while also considering the 60-day lead time for shipment and storage in the United States.
August 2024 • Inbound Logistics 33
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