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Collections change faster than ever before; stock levels must be optimal
The world of fashion seems to run faster and faster, however retail prices are under pressure. Online retail is increasing its share and it seems that the players who are able to combine both offline and online hold the right cards in hand. Flagship stores pop up to create the necessary brand building and a good website is imperative for online sales. This industry is a leader in developing an omni-channel strategies; hypermarkets, traditional retail, online and even (pop-up) outlet centres are very common. Clearance sales happen all year and fashion seasons are getting shorter; we see more new collections being introduced during the year, but they have smaller volumes.
In addition, the customer uses a myriad of different channels to gather and share information. Obviously 24/7. The cut-off moment for ordering is getting later and later. Some innovative retailers are able to deliver the same day.
Clearly, logistics systems must be flexible, fast and accurate. Warehouses perform additional activities such as labelling, hanging, marking or making anti-theft additions. Product identification is important, partly because of the relatively large return flows. Smart sorting systems, suspended transportation and efficient orderpicking systems are supported by sophisticated inventory management software.