The customer
Abercrombie & Fitch Co. (A&F Co.) is a global, omnichannel speciality retailer of apparel and accessories for men, women and kids through five renowned brands. With their headquarters in the United States (US), the company operates over 750 stores across North America, Europe, Asia and the Middle East, as well as their e-commerce sites.
The retailer has a growing presence in Asia Pacific, where they first opened a flagship store in Japan in the late 2000s.
The challenge
Hong Kong is an international trade location known for its high warehouse costs. In 2021, it was the second-most expensive city in the world to rent a warehouse, only behind London. Businesses are also hampered by labour shortages and limited storage capacity for their daily operations, resulting in orders not being fulfilled during a big promotion event or an urgent requirement. These restrictions can greatly impact sales and dampen the business’s long-term development.
Source: Cushman & Wakefield Plc
The solution
As A&F Co.’s long-term strategic partner, Maersk was able to offer a variety of customised omnichannel supply chain solutions to solve the customer’s issues. Through Maersk’s global distribution centre (DC) network, the team proposed relocating the customer’s Asia DC from Hong Kong to Great Bay, Shenzhen in China – an hour away by road. Maersk provided a full relocation solution without any interruption of business.
After the rearrangement, Maersk also provided integrated services, including warehousing, customs, cross-border trucking and last-mile delivery. Automated mobile robots were also introduced in the new DC to increase the centre’s daily processing capacity and accuracy.
The result
Maersk’s solution was a success. One of the biggest gains for A&F Co. was the decrease in annual operation costs since the relocation provided the same lead time from DC to stores or business-to-consumer (B2C) markets. Automated mobile robots increased productivity and lowered the reliance on manual labour, reducing human errors. The new DC was efficiently handled peak-season orders and offered flexibility for any unexpected increase in sales. Order accuracy was as high as 99.99%, leading to a better B2C consumer shopping experience.
Take the next step with Maersk
To ensure your business benefits from a supply chain that’s agile and flexible, Maersk offers customised solutions suited to your needs. Partner with us for supply chain and logistics solutions that work to take your business to the next level.
Find out more about Maersk Omnichannel Fulfilment solutions here.
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Get to know how Maersk Omnichannel Fulfilment used automation to aid growth for a lifestyle brand here.
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