With the help of modern technologies such as data analytics, open platform software, and sophisticated material handling systems – coupled with the right experience and expertise of a systems integrator – fashion fulfilment centres can come a long way in optimising their intralogistics operations. Here's how.
By BEUMER Group
The surge in e-commerce, dealing with omnichannel customers and finding workable solutions to manage returns are all challenges fashion fulfilment and distribution centres face. Designing new logistics operations to meet these challenges is both difficult and costly, so we’ve come up with this guide on how to manage common issues.
This guide covers:
Investing in automation tools and technology is expensive. It’s essential then that fashion distribution facilities work out how to secure long-lasting automation solutions to save money in the end. Here’s three things we suggest you do.
Investing in technology without first mapping your business needs puts you at risk of ending up with a solution that doesn’t work in the long run. Instead, you should run sensitivity tests and simulations of potential scenarios first to see if your plans for automation are sound.
You need to consider your operations and figure out where problems are arising. Is it a matter of speed, resources, expenses, storage or managing returns? After mapping your system, you’ll be able to select which parts of your operation would add value if automated.
Partner with a systems integrator with expertise in systems design and automated processes. An integrator can identify which processes you need to automate. It will also know the potential of your current technology and how you can prepare for future integrations.
Learn more: “How to future-proof your fulfilment or distribution centre with automation”.
It’s difficult for fashion operators to prepare for logistics of the future. Working with open platform software and designing for new integrations will help minimise the effects of incompatible technological developments.
Open platform technology is open-ended and able to connect with other interfaces – the more open the infrastructure, the easier it is to attach other systems to your warehouse control system (WCS). Open platform software helps prevent your WCS from becoming obsolete or unable to function.
The flexibility of open platform software means you can update your legacy system bit by bit and avoid disrupting the performance of your older components. You can make changes progressively and test their functionality before making further changes.
With open platform software, you are able to use software applications, data analytics and machine learning tools to test the effectiveness of your system. A specialised, skilled system integrator is often needed, however, to understand the data structure and the benefits to be gained from it.
Learn more about the integration possibilities and benefits of open software for fashion fulfilment.
The surge in e-commerce has driven many more B2C customers to fashion distribution and fulfilment centres. If you are used to operating cost-effective facilities for just your B2B customers, how can you now successfully run omnichannel operations?
Dealing with B2C customers involves overcoming a number of issues:
There are different ways you can manage omnichannel fulfilment as a fashion intralogistics operator. You can operate separate facilities or separate areas for your B2C and B2C production. Or, you can merge the two types of fulfilment and split the operations only at the point of outbound fulfilment.
Whether integrated omnichannel fulfilment is the right answer will be different for every fashion logistics facility. You need to consider your current structure, process and space. Think about your budget, ROI and resources, as setups adaptable to both B2B and B2C are expensive.
Technologies such as pouch sorter systems, automated guided vehicles, robots and artificial intelligence can help you cope with increased B2C orders. But you should first assess the key factors mentioned above with the help of an expert systems integrator.
Related: “How fashion fulfilment centres can structure their systems for both B2B and B2C”
Increased online shopping behaviour of consumers has created a deluge of returned items that are costing fashion operators revenue. But it’s possible to modify your processes to make reverse logistics more manageable, if not profitable.
The greatest number of returned items are in fashion items and this is challenging for several reasons: you spend a third of your operations on returns; you’re unable to plan resources; your handling costs are higher; and you have space issues.
There are two sorts of returns in fashion logistics: the returns coming straight from the customer or straight from the customer via the store; and the end of season items the store returns. Either way, the returns process is labour intensive and is very pricey.
With an automated sortation system, however, you can:
By using an automated sortation system, you can actually leverage your returns. The system’s so accurate that following the first sortation, it’s able to perform a second or third-tier sortation into SKU master packs or gaylords, which you can then on-sell to a fashion reseller.
In-depth look at the challenges of reverse logistics in fashion e-commerce.
To improve upon your already automated system, source a suitable system integrator. You will gain a long-lasting partner that can help you with concept development. You will also be able to perform gradual system changes in a controlled environment.
Read more: “Understanding investments in fashion fulfilment centres”
