Enhancing Apparel Distribution Efficiency for a Major Retailer

In late June/early July 2024, as the back-to-school season approached, a major retailer specializing in wearing apparel and accessories faced significant logistical challenges within the Greater Toronto Area. The company was tasked with servicing 86 stores daily but struggled with an inefficient shipping structure, manual reporting processes, and inconsistent service interruptions. They sought a comprehensive solution to improve their distribution system and enhance their overall operational efficiency.

 

Challenge

The retailer's core issues included:

  • Absence of a structured shipping system.
  • Manual and error-prone reporting.
  • Delays in response times.
  • Frequent service interruptions affecting timely deliveries.

These challenges led to poor visibility into operational data, hampering the retailer’s ability to make informed decisions and maintain consistent service levels.

 

Solution

SGL stepped in with a tailored approach designed to address these specific pain points. Leveraging a decade of hands-on retail experience and established EDI templates, SGL implemented the following solutions:

  • Daily Consolidated Pick-Ups: Streamlined transportation through daily consolidated pickups ensured efficient and timely deliveries.
  • Dedicated Drivers and Customer Service Team: Assigned dedicated personnel to handle the retailer’s needs, ensuring a high level of service and responsiveness.
  • Online Real-Time Data Visibility: Enabled the retailer to access and monitor real-time data, providing insights into operational performance.
  • 24/7 Escalation Path: Established a two-hour response turnaround time for escalations, ensuring prompt resolution of issues.

By utilizing these strategies, SGL addressed the retailer's logistical challenges effectively.

 

Results

The collaboration between SGL and the retailer led to significant improvements:

  • Enhanced Data Visibility: The retailer gained comprehensive visibility into their operational data, allowing them to identify both strengths and areas for improvement.
  • Operational Efficiency: With consistent and reliable service, the retailer experienced fewer disruptions and improved delivery timelines.
  • Strategic Insights: SGL provided a third-party perspective on the retailer's supply chain, offering valuable insights and recommendations for optimizing operations.

The implementation was so successful that it resulted in a noticeable increase in business opportunities for SGL. The retailer, previously serviced by a 20-year vendor, experienced a smooth transition and has described the decision to partner with SGL as one of the best they have ever made. The positive feedback from the client’s executive team and the effective resolution of their logistical issues underscore the success of the solution provided.