Get in touch
Barrett Distribution Centers
15 Freedom Way
Franklin, MA 02038
508-553-8800
Reverse Logistics for Clothing: Finding Cost Saving Opportunities
Scott Hothem • Sep 28, 2015
There’s an old adage in sports, specifically football, that “defense wins championships”. The truth is that while defense is inherently important, the best teams are complete on both sides of the ball. Any team that ignores one aspect for the other can doom their season. The same is true when it comes to logistics. A company that is solely focused on forward logistics with little strategy for reverse logistics can leave a lot of money on the table.
Competition and market factors across all industries have grown in complexity with the rise of e-commerce. In fact, due to the increase in online shopping, there is a corresponding increase in the number of product returns. A recent study by shows that up to 40% of clothing orders from last year’s holiday season resulted in a return. This can create a significant cost when the goal of most supply chains is to create efficiencies to meet these new challenges.
Many companies are beginning to give added focus on reverse logistics to create more cost savings. This lesser known side of the supply chain can account for one percent of overall costs if managed well and as much as 10% if managed poorly. Some of the common problems that create the scenario for a product return include:
- Inaccurate counting
- Delays
- Inaccurate paperwork
- Mishandling in the warehouse, truck or destination
- Misloading
- Damaged products
- Unwanted products
There are two ways to optimize the supply chain that will streamline the reverse logistics process in order to prevent these scenarios from happening as often, if at all, or being as costly to correct.
- Research: Discovering where your pain points lie in the returns process is the first step to creating a solution. This root cause analysis can spur updates and operational changes. It is key to determine:
- Do product purchases exceed consumer demand?
- Are you shipping too much?
- Are you shipping at the wrong time?
- Did the shelf life expire?
- Was the packaging ineffective?
When these questions, among others, can be answered, improvements in shipping processes and systems can be made as well as order and performance management.
- Recapture Income: Of course when you ship and sell a product it creates revenue, and when that order is returned, you lose that revenue. So reducing returns and having the ability to efficiently return these orders to the supply chain where they can generate revenue has an immediate impact on supply chain cost. By maximizing the profitability of these items through: repacking, refreshing and returning to inventory, revenue is increased and costs are lowered.
By focusing on reverse logistics, significant cost savings can be found. By reducing the number of returns through better supply chain management and creating a strategy to efficiently and effectively return these products to stock to be resold, your logistics costs will decrease while your revenue increases.
For over 70 years Barrett Distribution Centers has been helping clothing manufacturers create supply solutions and better manage their reverse supply chains.
Recent Blog Posts
"For over a decade, Barrett has been more than just a logistics partner; they've been an extension of our company. Barrett facilitated our expansion into the West Coast, enabling quicker turn times for our screen-printed goods. This partnership played a crucial role in our growth during the first several years." – Mike McAllister, Fruit of The Loom At Barrett Distribution, we pride ourselves on being more than just a logistics provider; we are a committed partner in our clients' growth journeys. Our ideal customers seek a deep, collaborative relationship, and our success stories, like that of Fruit of The Loom, highlight the importance of engagement, professional communication and mutual growth. This blog explains the key characteristics that define the ideal Barrett customer blueprint and how these traits contribute to a successful and long-term 3PL partnership. The Importance of Engagement When considering our most successful relationships at Barrett, it becomes clear that our best customers thrive on engagement. These customers are not just looking for a vendor; they seek a true partner. This partnership approach contrasts sharply with the transactional nature of typical vendor relationships, which often lack the depth and collaboration necessary for mutual success. Professional Communication and Mutual Growth Our ideal customers prioritize high levels of professional communication. They understand that a successful partnership with a 3PL provider requires ongoing dialogue, transparency and trust. This communication ensures that both parties are aligned and can work together seamlessly to achieve shared goals. Many of our most successful partnerships started with small, emerging brands. These companies were new in their journey and sought a partner who could help them scale. Through consistent performance and effective communication, we've helped these brands grow, and as a result, our credibility and level of trust have increased over time. Avoiding the Transactional Trap On the other hand, brands that frequently change 3PL providers, often in pursuit of the lowest cost, do not align with the Barrett approach. These short-term, cost-focused relationships lack the cultural fit we seek. We aim to enter partnerships with the expectation of a long-term commitment, ideally spanning ten years or more. This long-term perspective fosters deeper collaboration and a stronger, more resilient partnership. Conclusion The ideal Barrett customer values engagement, professional communication, and mutual growth. These customers view us as partners rather than vendors and share our commitment to long-term success. By focusing on these characteristics, we ensure that Barrett and our customers thrive in the competitive 3PL industry. Why Choose Barrett Distribution? With over 80 years of experience in the logistics industry, Barrett has a proven track record of helping businesses overcome their 3PL challenges. Our commitment to innovation, scalability and customer satisfaction sets us apart from other 3PL providers. You're partnering with a logistics provider dedicated to your success. Are you a company looking for a long-term 3PL partner? Contact us today to learn how our 3PL services can help your business scale and thrive.
Did you know that global e-commerce sales are expected to reach $8.1 trillion by 2026, a 56% increase from 2021? According to a report by Statista , the rapid growth in online shopping is driving this significant increase. Brand and consumer demands have fueled an explosive expansion of the third-party logistics (3PL) industry. 3PL services cover the full range of e-commerce fulfillment processes, from warehousing to pick-and-pack, shipping, and returns. If you’re an e-commerce company and fulfilling orders in-house is no longer viable, it’s time to turn to a third-party logistics (3PL) provider like Barrett Distribution Centers to expand your fulfillment strategy. Here’s what you should know about working with a logistics partner and how to choose the right one for your business's needs: 1. Experienced and Reliable Team The first and foremost consideration is the experience and reliability of the 3PL partner’s team. When leading a Request for Proposal (RFP), you might evaluate several companies, initially focusing on price and cost. However, these elements can often be quite similar across different proposals. What truly distinguishes one 3PL from another is the team’s expertise and proven track record. You want a partner who has “been there, done that” and can easily navigate the complexities of logistics. At Barrett, we pride ourselves on our people and culture, which consistently win us business. The team’s ability to do things efficiently and effectively is crucial for a successful partnership. 2. Exceptional Service Levels Service quality is another critical factor. The ability to fulfill orders accurately and on time is paramount, especially in the e-commerce sector. Customers expect their orders to arrive when promised, and any delays or inaccuracies can lead to dissatisfaction and lost business. When choosing a 3PL partner, ensure they have a robust system for managing order fulfillment and a track record of delivering exceptional service. The right partner will help you maintain high standards and keep your customers happy. 3. Scalability and Systems Lastly, consider the 3PL’s scalability and technological capabilities. While most large, reputable 3PLs have sophisticated systems in place, scalability is what sets them apart. You need a partner who can grow with your business and support you as you expand into new channels and markets. At Barrett, we aim to be your long-term partner, making it virtually impossible to outgrow our services. We think five, ten, or even fifteen years ahead, ensuring we can support your business's growth and evolving needs. Look for a 3PL that seamlessly integrates with your current operations and scales as your business grows. In summary, when hiring a new 3PL partner, prioritize their experience, service quality, and scalability. By focusing on these key areas, you can ensure a successful and long-lasting partnership that supports your business’s growth and operational efficiency. Why Choose Barrett Distribution? With over 80 years of experience in the logistics industry, Barrett has a proven track record of helping businesses overcome their 3PL challenges. Our commitment to innovation, scalability and customer satisfaction sets us apart from other 3PL providers. You're partnering with a logistics provider dedicated to your success. Are you a high-velocity D2C brand looking for a 3PL? Contact Barrett today to learn how our e-commerce fulfillment services can help your business thrive.
KAO Brands is a leading consumer products company specializing in haircare and hygiene products. They rely on Barrett Distribution Centers (BDC), to manage their entire fulfillment operation. As KAO's e-commerce business flourishes, optimizing costs per order becomes increasingly crucial. A Sustainable Impact Historically, KAO used seven carton sizes for packaging all their e-commerce orders. With ever-increasing shipping costs, BDC knew exploring hidden opportunities to improve KAO’s packing efficiency was necessary. Beyond the impact on their bottom line, KAO Brands strives to develop sustainable products and packaging, “making the world healthier and cleaner.” BDC’s Industrial Engineering team, spearheaded by Nick Halcombe , investigated potential cost reductions through cartonization optimization. Halcombe stated, “By partnering with Paccurate to pilot their innovative cartonization platform, BDC sought to determine if Paccurate’s software could identify a more efficient carton suite for KAO Brands. This collaboration can lead to significant savings in transportation and materials and positively impact the environment.” Leveraging Simulation for Real-World Impact The power of Paccurate’s packaging analysis tool, PacSimulate, lies in its ability to analyze vast amounts of order data and perform millions of cartonization iterations rapidly and at scale to test different carton sizes, cartonization rules, rate card changes, and more. In this case, BDC leveraged Paccurate to evaluate an entire year’s worth of order data to determine what savings might be found by optimizing the outbound shipping container sizes. Data-Driven Results The analysis revealed a clear path toward significant savings by comparing KAO's existing seven-box system to the ideal-fit cartons suggested by PacSimulate. Five out of the seven existing cartons were identified for replacement. This strategic shift resulted in a projected annual transportation cost reduction of 5.9%. Furthermore, PacSimulate's analysis identified a substantial opportunity for material savings. The optimized carton suite yielded a 33% reduction in corrugated material usage and a 34% net DIM weight reduction. These savings will contribute to KAO Brand’s ESG initiatives of ensuring 100% of their products will leave a full lifecycle environmental footprint that science says the natural world can safely absorb. Additionally, further analysis identified that KAO Brands could even reduce the number of cartons they stock while still seeing some benefits from a transportation and corrugated waste perspective. Optimization Results By implementing Paccurate's cartonization solution, BDC identified significant cost savings for KAO from both a transportation and materials perspective. The power of data-driven cartonization and its potential to significantly impact e-commerce fulfillment costs benefit customers and provide a value-added service for 3PLs like Barrett Distribution Center. The Bottom Line for KAO + BDC 33% Less corrugated material usage 5.9% Transportation cost reduction 34% Net DIM weight reduction About Barrett Distribution: With over 80 years of experience in the logistics industry, Barrett has a proven track record of helping businesses overcome their 3PL challenges. Our commitment to innovation, scalability and customer satisfaction sets us apart from other 3PL providers. You're partnering with a logistics provider dedicated to your success. Ready to overcome your logistics challenges? Contact Barrett today to discover how our tailored solutions can help your business thrive.
