Fashion Retailer

Fashion Retailer

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Fashion retailer reduces cost and improves performance with Control Tower


 

43%

Reduction in average freight cost

40+

Late arrivals avoided in 2018

90%

Lower CO2 by using less air freight

Summary

By using a control tower setup, a fashion company reduced late arrivals and improved transportation planning, thereby reducing cost and environmental impact while optimizing inventory management.

Customer

A leading fashion retailer with over 100 stores and strong e-commerce business serving customers in the EU. Primary suppliers located throughout Asia and Middle East, leading it work with multiple freight forwarders.

Problem

Underdeveloped internal transportation planning and lack of visibility led to inventory issues and overreliance on last-minute air freight. Made worse by suppliers struggling with purchase order fulfillment accuracy.

Solution

Improve transport planning by identifying bottlenecks and key areas and translating these into a control tower setup focused on KPIs and milestone tracking. This transparency allows better monitoring of performance of existing carriers and shift to ocean, rail, and road to replace airfreight.
To address purchase order fulfillment issues and related inventory impact, implemented PO auditing to identify and resolve costly fulfillment errors prior to shipping.

Results

Reduced dependence on air freight led to 43% lower freight cost/shipment and a drop of up to 90% in CO2 output.* Overall improved inventory efficiency and avoided over 40 late arrivals in 2018 alone.

Improving mode mix

Impact in cost and CO2

25%

*Based on International Chamber of Shipping emission factors

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