Fashion apparel brand
Fashion apparel brand
The client primarily operates a fashion apparel brand on Amazon, with their supply chain based in Yiwu, China, focusing on the German and American markets. To quickly respond to market changes and improve search rankings on Amazon, they are concentrating on expanding their entire industry chain to once again increase sales. Given the lack of a warehouse within China, the fashion apparel industry's high demands for logistics and inventory management pose significant challenges.
Pain points
Fashion apparel is highly seasonal and styles update rapidly, requiring swift timeliness. Missing the popular period for supply or untimely restocking for a new season can lead to inventory backlogs or stockouts, damaging performance and brand image. Without a warehouse in China, supply chain fluctuations can leave them without inventory to dispatch, especially during peak seasons or when hot-selling products emerge. This affects order processing and restocking plans, constrains the ability to respond to market demands, and increases operational risks.
Collaboration outcomes
The client's company, as a self-operated brand, previously suffered from insufficient warehouse capacity during peak seasons, impacting their restocking plans. They decided to partner with Mei Ou Cloud Warehouse and utilized cross-border cloud warehouse services. Within one year of cooperation, Mei Ou Cloud Warehouse has helped them ship over 100,000 orders, assisting in smooth restocking and reducing their peak season storage costs. Additionally, based on the varying demands of different markets during off-peak and peak seasons, Mei Ou Cloud Warehouse provided customized logistics solutions, enhancing the brand's market adaptability.
What challenges will be faced?
Cross-border logistics is greatly affected by policies, trade environments and other factors. It may encounter problems such as transportation delays and customs clearance obstacles, which will increase logistics costs and delivery uncertainties.
Fashion trends change rapidly. It is necessary to accurately predict market demand. Otherwise, there will be risks of inventory overstock or out-of-stock. Meanwhile, it is necessary to balance inventory and capital occupation.
Cooperation with cloud warehouses involves multi-party coordination. Poor information communication may lead to order processing errors, shipping mistakes and other situations, which will affect the customer experience.
What are the solutions provided?
To address logistics risks, Meiou Cloud Warehouse utilizes its own resources and experience to plan multiple logistics routes in advance, track the transportation status of goods in real time, and provide timely feedback and solve customs clearance and other issues to ensure the on-time delivery of goods.
To deal with the problem of market demand prediction, a big data analysis system is established, which combines fashion trends, historical sales data, etc. to assist customers in preparing goods accurately. Meanwhile, inventory management strategies are optimized. For example, a flexible supply chain is adopted, with small-batch and multi-batch replenishment to reduce the risk of inventory overstock.
A highly efficient information communication platform is built to realize the real-time sharing of order information, inventory data, etc. Operational processes are standardized, and personnel training is strengthened to reduce human errors and improve the overall operational efficiency and service quality.
The impact of cooperation on customer satisfaction and inventory management
In addition to the cumulative shipment of over 100,000 orders and the reduction of warehousing costs during the peak season, the logistics timeliness has been significantly improved. The average delivery time of customer orders has been shortened by 10 to 20 days, and the customer satisfaction has increased from 60% to 90%.
The inventory turnover rate has increased by 100%. The situation of inventory overstock has been significantly improved, and the out-of-stock rate has decreased by 100%, effectively ensuring the market supply of products.
The brand's search ranking on Amazon has risen by 100 places, the market share has increased by 30%, and the sales volume has increased by 50% year-on-year, successfully helping the brand expand its market influence and competitiveness.
