FMCG
Fashion

Overview

Apparel industry faces different challenges and one of them is the speed at which fashion changes with time. Fashion trends get outdated with each season making it the most volatile industry in terms of costs & risks which is also influenced by different economic factors leading to supply and demand gap. Manufacturers and retailers are required to clear outdated fashion merchandise and add new clothing options for every season. Apparel manufacturing is mostly a global business having high lead times and short business season making it complex and unpredictable.

Predicting upcoming styles, forecasting demand and cost estimations are challenging tasks, so businesses need to build responsive and efficient supply chains. E-commerce has acted as a catalyst in changing the shape of the industry by changing shopping habits of people and bring retailers on toes as number of channels to discover, research and purchase apparel has increased exponentially. Multi-channel distribution strategies have to face challenges such as just in time inventory, SKU proliferation, demand surges, seasonalities, same day/ next day delivery and return orders processing.

Industry Insights

  • Market size - $60 billion in 2018 | CAGR of 10.7% till 2020
  • Typically, warehouses are of 1,00,000 to 2,50,000 SqFt
  • One warehouse serves 100-350 stores per day & per store 3-4 orders will be processed
  • Average 800-2000 orders per day with an order picking of 70,000 to 2,00,000 eaches
  • Approximate count of 30,000 to 60,000 SKUs
  • In case of organized retail, store formats are multi brand outlets & single brand outlets
  • At warehouse 40% -60% of the distribution happens through cross dock
  • Storage of stock in the warehouse happens in the same format as display in retail store
  • Packing of the goods will also happen in the same format as retail store display

Fashion Ecommerce

  • On an average warehouse will have up to 6Lakh SKUs
  • The depth of item storage in warehouse is very small - for 1 style -> 1 size -> 1 colour
  • Max basket size – 3 pieces & single line orders are more
  • 25,000 to 40,000 orders per day
  • Warehouse storage is not properly organized; multiple sizes of same product are clubbed
  • Storage stock consists of broken sizes

Demand Drivers

  • Demographics: With nearly 60% of young population, Indian youth have high aspirations & towards fashion trend
  • Increasing disposable incomes
  • Emerging rural markets & increased working women population
  • Evolution of ecommerce business & expansion of multinational brands to tier-2 & tier 3 cities

 

Solutions

  • Same carton with multiple SKUs – Solutions serialisation, sorting
  • Voice, Put-to-Light & sorters are the main solutions

Major Challenges

  • Fashion changes for every 3 months as season changes, hence the lead times for stock clearance are very short
  • On demand production which happens in small lots, especially for luxury brands
  • Returns handling: 25% to 28% of total sales are returns
  • Finding the right product for quick order picking or stock clearance due to broken sizes
  • Improving shipment density /load utilization
  • Shortening go to market lead times
  • Ensuring perfect order fulfilment
  • Stock clearance at the end of season
Addverb Solutions

With the complexities of the apparel industry, firms need to be more flexible and organized to stay ahead of their competitors. Addverb Solutions at various stage of apparel supply chain make your organisation more agile and responsive by virtually bringing you near to your customers. Integrating our solutions provide an added advantage in terms of visibility and control over business processes. We help you reduce your in-house errors, enabling you to avoid product shortages and fast order fulfilment. Our solutions are hand-picked for manufacturers and retailers of various sizes and operations.

Our engineered approach solves specific problems of your organization like omni-channel distribution centers, reverse order processing, e-commerce order fulfilment and seasonal peaks. We help you maximize space utilisation in a current facility with our warehouse automation solution. Addverb's picking solutions increase your order fulfilment efficiency with exponential increase in speed. Our software solutions help you keep a track of multiple SKUs with just in time inventory.

Picking

For apparel industry, it is of utmost importance to have 100% accurate picking solution at distribution centers to avoid unnecessary return handling cost and inconvenience to customers. Our AddLight and Khushi solutions help you achieve exactly the same, be it for slow-moving items or fast moving items.

AddLight: It is our light directed picking technology, that provides high speeds & accuracies for picking. An alpha-numeric display system shows the quantity to be picked from specific locations for multiple orders. It has the highest throughput with minimal error rate.

Khushi: voice directed, hands free, and eyes-up picking technology that enables the operator to handle products with utmost care at great speed and accuracy. Khushi is a user-friendly product specially built for Indian warehouses with 22 regional Indian languages.

AGV

Our AGVs have the capability to safely transport all kinds of products without human intervention within warehouse and distribution environments. They travel by using natural navigation technology on a predictable path within a controlled environment.

AGVs reduce product damage, aisle traffic, and provide the ability to schedule efficiently to minimize the lead time to market . Our solution does all the repetitive movement and ensures efficient placing of your SKUs resulting in better inventory management.

SmartMove

Catching up to the inconsistent fashion trends to provide customers what they want leaves apparel industry with shorter response time. These shorter cycle times make warehouse the busiest place with forklifts, drivers and lots of things to collect. Our SmartMove solution from Addverb provides 100% visibility of your equipment by tracking the movements of your forklift .

It provides all the necessary information about your MHEs namely their movements, paths and routes taken, performance analysis . With advanced analytics, SmartMove helps you rationalize the number of MHEs and optimize their usage to increase your operational efficiency, warehouse safety, reduce cycle time and cut costs.

Conveyors

To ensure shorter lead times to the market, a quick mechanism is needed to move your materials inside the facility. Our conveyors have the ability to handle various types of loads including cartons, totes, polybags.

Addverb designs and develops customized conveying systems by matching different conveyors and sortation technologies to meet the order fulfilment requirements. Our solution includes Gravity Conveyors, Live Roller Conveyors, and Accumulation Conveyors.

AddSys

AddSys, our warehouse control system seamlessly integrates with your WMS, ERP or Legacy systems to reduce inefficiencies, enhance the capability of handling more volumes, and improve warehouse operations .

It exchanges real-time data among material handling equipment to provide better coordination and to ensure that everything works in harmony. AddSys can address your business needs, provides the best functional fit solution and is flexible to accommodate new functionalities as your needs grow or new innovations hit the market.

AddLoc

With the availability of too many options and changing trends in apparel industry, the cost of switching brands is very less for customers. To ensure prompt availability of your product at the right time, you need high operational efficiency at your warehousing and distribution center. AddLoc, our warehouse management system optimizes your material handling operations by providing better control and visibility .

It has got built-in modules that can be customized to support the needs of small businesses as well as large facility with complex features. AddLoc has the capability to handle large physical inventories, facilitate smooth flow of materials and take cycle counting (stock takes).

Deal the seasonalities of trends with our automation solutions

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