From the catwalk, straight to the customer’s closet in less than a few weeks. Fashion trends, subsequently the fashion industry, have evolved rapidly in the last few years. Earlier, the turn of the season was a process that took weeks and months of planning. Now trends change with each fashion show and celebrity outing.
Main challenges faced by the fashion industry
As fashion influencers and celebrities document their every look on social media, inspiration is available in abundance. These looks are recreated and brought to the shops in record time. Here lie two of the biggest challenges of fashion retail – short-lived trends and fluctuating demand.
Rapidly changing trends leave older stock out of fashion. To avoid turning this into deadstock, it has to be sold at discounted prices which lowers the profitability. Fashion, especially the apparel industry, is subject to immense demand uncertainty. This is mostly because fashion sales are highly influenced by external factors. With social media taking center stage, these trends change in the blink of an eye. For a retailer, being able to roughly ascertain demand and push the stock to convert it into sales in time is a massive advantage.
Finding an advantage
As the catalyst of change here is technology, the answer to these challenges is also technology. Just as the fashion industry is adapting to this new fast-paced way of operating at the backend, the retailers must also keep up and integrate technology to ensure that they aren’t left behind.
At the order fulfillment level, a new-age Warehouse Management System (WMS) can solve many of these problems. Let’s take a look at the order fulfillment process and some ways in which a modern WMS can help retailers function optimally.
- Receiving Goods – The stock received at the warehouse undergoes a quality check before it can be made live on marketplaces and made available for sale. At this stage, each piece is assigned a serial number/barcode, that captures all product attributes including a picture for better searchability during tracking. Automated warehousing helps optimize space in the warehouse by allowing storage of multiple SKUs at the nearest available location. The system keeps a record of the location and maps them during order picking so no piece is lost or misplaced.
- Order Processing – Once an order is placed, the automated WMS assigns priority to the picking process based on the delivery date committed to the customer at the time of sale and the channel of sale. Priorities are allotted to orders from across channels, ensuring order fulfillment is completed within stipulated time irrespective of the geographical source of the order. An automated picklist is created and scan-based picking ensures error-free first-time-right operations. Visual cues like the images linked to a barcode, guarantee flawless picking. When the barcode/serial number on an item is scanned, all the details of the item are displayed. This minimizes the chances of errors in order processing and improves efficiency. Consolidated packing at the pigeonhole reduces the number of shipments to the customer while saving the retailer additional logistics and packing costs. A priority-based fulfillment process eliminates the possibility of late deliveries
- Returns – According to Invespcro, around 23% of the orders are returned due to incorrect product delivery to the customer. Increff WMS can help make the returns process efficient with serialization. Barcode mapping helps in tracking the item through the entire return and quality check process. If the item matches quality expectations, it can be made available for sale immediately, saving time and avoiding loss in sales opportunities.
Serialization helps in obtaining 100% stock visibility across all channels of sale at all times. Real-time inventory-order sync reduces the chances of order cancellations due to overbooking.
Increff WMS is equipped to effectively manage products that have an expiration date by triggering an alert when the sell-by date is approaching. It also has an auto-replenishment feature which raises an alert when the quantity of stocks reaches a designated par level. This allows for the uninterrupted and smooth functioning of the warehouse without any delay in orders or deadstock piling up.
Investing in an intelligent WMS provides retailers the potential for scalability. An increase in demand can be extremely unprecedented in the fashion industry. With its many features, a WMS can optimize storage space, escalate the processing of orders, and prepare for a surge in demand without additional investments.
Increff WMS is designed keeping in mind the challenges of integrating a new system into the existing infrastructure, and it is equipped to merge with the existing ERPs without roadblocks and downtime. Deployment and onboarding can be done in less than 7 days without disruptions to everyday operations. The intuitive and simple interface makes it possible for everyone to adapt to it quickly and workers can be trained in less than 5 days. To face the constant challenges presented by the fashion industry, it is important to have technology and preparedness on your side as a retailer. Elevate your efforts with the foundation of future-ready technology to match the pace of the fashion industry by investing in a WMS.
18 October, 2021
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