Shoe Retailer Launches Online Store With Help From Logistics Partner

Challenge

This OHL customer is a leading U.S. specialty branded footwear retailer.  When the retailer initially partnered with OHL it operated 273 retail locations in 37 states in the US.  As one of the most sought-after shoe stores in America, the retailer wanted to extend its customer base and its product availability by offering shoes online.  An online store was created in direct response to customer requests.

Approach

The company needed a logistics partner with expertise in the direct-to-consumer marketplace.  It also wanted a 3PL with deep experience in the retail sector.  Launching the online store was the first step.  Accurate order fulfillment was critical to the customer experience, so technology to support the operation was also key in the decision-making process.  OHL utilizes Manhattan Associates® Distribution Management Solutions WMS for this retailer.

The specialty branded footwear retailer and OHL worked out additional value-added services to maximize the capabilities of the partnership, and the appeal for online clients:

• Gift wrap – During the holiday season the retailer wanted to offer a gift wrap service.  OHL accommodates this with a dedicated team to take care of gift wrap-flagged orders.
• Gift with purchase – On occasion the retailer offers a gift with purchases.  A simple process update was completed by OHL to satisfy this requirement.
• Rework - A significant portion of inbound shipments are received in what is referred to as a “musical” vendor pack.  These vendor packs consisted of a store-based size run of shoes.  The retailer dictated that shoes should be packed in solid size, color, and style cartons before being dispatched.  Each musical case was reworked to ensure compliance with the updated dispatch orders and repacked as one SKU.
• Returns – Of great significance for all online retailers is the ability to accept and process returns.  The retailer offered its clients two return options; to retail store, or back to the OHL distribution center.  When a shoe is returned to the OHL facility, OHL documents the return, records the return reason code, inspects for damage, and fulfills the client’s request.
• Retail Transfer - In order to maximize the retailer’s inventory position between its retail and e-tail businesses OHL periodically accepts inventory from the retail DC.  OHL created ASNs to assist in the receipt of inventory.
• Quality Audits – OHL performs quality audits on both inventory product and returned goods - examples include ensuring that the product photo matches the boxed product, and verification of a client’s return reason code.

Value

This major shoe retailer continues to have delighted customers – those shopping in retail stores and those who choose to purchase online.  OHL processes over 5,000 orders per day and manages 65,000 SKUs for this customer in a 265,000 sq ft operation.  OHL’s performance is exceeding all of the customer’s defined KPI targets.

ROI

In addition to increased sales, OHL also provides quality assurance, gift wrap, re-work and return services.   Launching the online store has been a successful venture for the retailer.