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Optimizing Supply Chain Logistics for Growth

Business & Supply Chain Optimization

for

a

Startup Apparel Company

Opportunity

An early-stage apparel brand landed major nationwide retail accounts and needed to optimize its global supply chain and operations in order to deliver. Specifically, it was essential that key business processes were automated, target margins and lead times achieved, and a new third-party logistics provider (3PL) that could meet the service demands was identified and engaged.

Solution

To automate processes, Netsuite, a cost-effective, cloud-based ERP solution that would allow the immediate integration of necessary operations and scale for increased functionality over time, was identified and implemented for accounting, order management, reporting, and later CRM, including the training of all impacted team members. To increase production capacity and margins, an additional supply chain was opened in India and raw materials were sourced in-country to reduce transit time and costs. In addition, production process improvements, from product design to demand planning and inbound shipping, were identified and implemented. Finally, a new 3PL that had the ability to scale with the company’s needs was identified and warehouse operations were transferred from the previous 3PL, reaching a 98% on-time ship rate within three months.

Outcome

The company doubled its revenue two years in a row, while maintaining a small, efficient workforce and reducing operational costs as a percentage of revenue. The company used insight from Netsuite’s sales reporting to increase production on high performing styles, while trimming less profitable styles. Overseas manufacturers delivered higher quality standards and firm lead times, and the company was able to put its largest and most successful collection on shelves in time for the holidays.

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