Clothing retailer improves customer service levels
A high-end clothing retailer needed to transition to their own supply chain network after divestiture from a conglomerate. Their goal was to optimize cost and improve customer service levels, which included e-commerce customers.
The high-end clothing retailer is comprised of nation-wide boutiques with extensive, hyper-localized styles and a rapidly growing e-commerce channel. Their products are sourced from both international and domestic suppliers.
There are many SKUs in small quantities due to seasonal, high-fashion products. The items are predominantly parcel shipping throughout the network. Transitioning to their own supply chain required evaluating 3PL partners.
Solution & Results
3TO built & exercised a Supply Chain Architect model to identify optimal distribution center location(s) and 3PL partner. This involved end-to-end modeling from international & domestic suppliers to eCommerce and store customers.
The model identified optimal distribution center locations that minimize transportation cost and significantly increase customer service toward best-in-class 2-day service. Key advantages to using Supply Chain Architect included:
- Robust constraint approach to control nuances of this hybrid network
- Rich scenario development and management capabilities complemented with Tableau template for reporting