Industries - Retail
Apparel manufacturing and retailing is increasingly more difficult to preserve a competitive advantage
while maintaining profit margins. You need to respond to demand fluctuations, reduce inventory without incurring stock-outs,
control product pipeline and meet the latest market trends by increasing your speed to market.
Client Challenge
Our client is a national apparel brand leader with over 1,500 self-owned
and franchise stores and 3,000 department store counters in first and second-tier cities across China.
Most of the retailing outlets are located in the very downtown metropolitan areas, where surrounding traffic,
delivery time, and type of delivery vehicles are all tightly restricted. On time delivery and efficient in-store
inventory control has been a long-time headache for the client.
CNL Solution
The very first step CNL logistics consultant took was to conduct a thorough and systematic
research of traffic conditions in all the first- and second-tier cities where the client has retailing outlets.
By building a sophisticated statistical model, CNL consultant helped the client to rationalize its delivery routes,
delivery frequency and in-store inventory carrying policy, which led to a greatly improved supply chain efficiency.
The Result
- reduced stock-out rate from 23% to 3%
- reduced in-store inventory level by 36%
- reduced shipment delivery cost by 26%