Revolutionizing Garment Rental Logistics- A $97 Million Savings Story for Urban Outfitters' Subsidiary
Automation and Bespoke ERP Transform Manual Distribution Center, Delivering 42% Picking Efficiency Improvement and Setting a New Standard for Garment Rental Logistics
Client:
- Acquirer: The parent company of Urban Outfitters, a leading lifestyle retailer.
- Acquired: A newly acquired garment rental service subsidiary.
Challenge
Following the acquisition, Urban Outfitters’ parent company inherited a 500,000 square foot distribution center critical to the operations of their new garment rental service. This facility handled the complete lifecycle of rental garments – from picking and packing for outbound shipments to receiving returns, dry cleaning, quality assurance inspections, and restocking. However, the operation was heavily reliant on manual processes, leading to significant inefficiencies:
- Manual Operations: Picking, packing, shipping, receiving, dry cleaning sorting, and quality checks were largely performed by hand, requiring a large workforce.
- Storage Space Constraints: The facility was rapidly running out of storage capacity, hindering scalability and increasing operational bottlenecks.
- Inefficient Picking Processes: Locating and retrieving individual garments was time-consuming and labor-intensive.
- Lack of Real-Time Visibility: Limited technological infrastructure resulted in a lack of real-time data on inventory and processing status.
- Suboptimal Delivery Performance: On-time and in-full delivery rates were at 72%, impacting customer satisfaction.
Solution
To address these challenges and establish a scalable and efficient operation, JET Consults partnered with Urban Outfitters’ parent company to design and implement a comprehensive automation and technology solution. Our approach focused on streamlining the entire garment lifecycle within the distribution center:
- Vertical Carousel System: We designed and implemented a state-of-the-art, vertically aligned carousel system spanning approximately 20,000 square feet and three levels. This automated material handling system, similar to those used in advanced dry-cleaning facilities, revolutionized garment storage and retrieval. Each garment was tagged with a unique identifier, allowing for automated scanning and sourcing.
- Batch Picking Efficiency: The carousel system was designed to deliver garments in pre-determined batches, significantly improving picking efficiency and reducing the time required to fulfill rental orders.
- Vertical Lift Module (VLM): To further enhance picking efficiency and accessibility, we installed a Vertical Lift Module (VLM), acting as an automated elevator to bring stored garments to the picking level.
- Optimized Storage Racking: We redesigned and optimized the existing storage racks, adding tiers to increase vertical storage capacity from three to five levels, maximizing space utilization within the facility.
- Bespoke ERP System: Recognizing the unique needs of a garment rental service, we developed a bespoke Enterprise Resource Planning (ERP) system. This custom-built solution managed the entire picking, packing, shipping, and processing logistics of the rental garments within the facility.
- ERP Integration: To ensure seamless data flow and visibility across the broader organization, we integrated the bespoke garment rental ERP system with Urban Outfitters’ parent company’s existing enterprise systems.
Implementation:
The $25 million project was executed with a focus on minimizing disruption and maximizing impact:
- Detailed Planning and Design: We worked closely with the client to understand their specific requirements and design a tailored automation and technology solution.
- Seamless System Installation: Our team managed the complete installation of the vertical carousel system, VLM, and optimized storage racking.
- Bespoke ERP Development and Deployment: We developed, tested, and deployed the custom ERP system, ensuring it met all functional requirements.
- Comprehensive Integration: We successfully integrated the new ERP system with the parent company’s existing IT infrastructure.
- Thorough Testing and Training: Rigorous testing was conducted to ensure the reliability and efficiency of the new systems. Comprehensive training was provided to the facility staff to ensure smooth adoption.
Results
The implementation of the automated system and bespoke ERP delivered significant and measurable improvements for Urban Outfitters’ garment rental subsidiary:
- Dramatic Picking Efficiency Improvement: The automated carousel system and VLM resulted in a 42% increase in picking efficiency, significantly reducing labor costs and order fulfillment times.
- Significant Long-Term Cost Savings: The $25 million investment is projected to generate over $97 million in savings over the next five years through reduced labor, improved space utilization, and streamlined operations.
- Blueprint for Scalability: This successful implementation serves as a blueprint for potential rollout to four other North American picking facilities, offering a standardized and efficient model for future expansion.
- Enhanced Delivery Performance: On-time and in-full delivery rates soared from 72% to an impressive 98%, leading to increased customer satisfaction and loyalty.
- Maximized Storage Capacity: The optimized storage racking and vertical carousel system effectively addressed the storage space constraints, providing ample capacity for future growth.
- Streamlined Operations: Automation and the bespoke ERP system streamlined the entire garment lifecycle, from receiving to shipping, resulting in a more efficient and cost-effective operation.
Conclusion:
By embracing automation and a tailored technology solution, Urban Outfitters’ parent company successfully transformed their newly acquired garment rental service’s distribution center from a manual, space-constrained operation into a highly efficient and scalable facility. This $25 million investment is projected to deliver substantial long-term savings and has established a best-in-class model for garment rental logistics. Jet Consults is proud to have partnered with them on this transformative project, demonstrating our expertise in delivering innovative solutions that drive significant operational improvements and financial returns.
Looking to optimize your distribution center operations and achieve significant cost savings through automation and bespoke technology solutions? Contact us today to learn how we can help.
Revolutionizing Garment Rental Logistics- A $97 Million Savings Story for Urban Outfitters' Subsidiary
Automation and Bespoke ERP Transform Manual Distribution Center, Delivering 42% Picking Efficiency Improvement and Setting a New Standard for Garment Rental Logistics
Client:
- Acquirer: The parent company of Urban Outfitters, a leading lifestyle retailer.
- Acquired: A newly acquired garment rental service subsidiary.
Challenge
Following the acquisition, Urban Outfitters’ parent company inherited a 500,000 square foot distribution center critical to the operations of their new garment rental service. This facility handled the complete lifecycle of rental garments – from picking and packing for outbound shipments to receiving returns, dry cleaning, quality assurance inspections, and restocking. However, the operation was heavily reliant on manual processes, leading to significant inefficiencies:
- Manual Operations: Picking, packing, shipping, receiving, dry cleaning sorting, and quality checks were largely performed by hand, requiring a large workforce.
- Storage Space Constraints: The facility was rapidly running out of storage capacity, hindering scalability and increasing operational bottlenecks.
- Inefficient Picking Processes: Locating and retrieving individual garments was time-consuming and labor-intensive.
- Lack of Real-Time Visibility: Limited technological infrastructure resulted in a lack of real-time data on inventory and processing status.
- Suboptimal Delivery Performance: On-time and in-full delivery rates were at 72%, impacting customer satisfaction.
Solution
To address these challenges and establish a scalable and efficient operation, JET Consults partnered with Urban Outfitters’ parent company to design and implement a comprehensive automation and technology solution. Our approach focused on streamlining the entire garment lifecycle within the distribution center:
- Vertical Carousel System: We designed and implemented a state-of-the-art, vertically aligned carousel system spanning approximately 20,000 square feet and three levels. This automated material handling system, similar to those used in advanced dry-cleaning facilities, revolutionized garment storage and retrieval. Each garment was tagged with a unique identifier, allowing for automated scanning and sourcing.
- Batch Picking Efficiency: The carousel system was designed to deliver garments in pre-determined batches, significantly improving picking efficiency and reducing the time required to fulfill rental orders.
- Vertical Lift Module (VLM): To further enhance picking efficiency and accessibility, we installed a Vertical Lift Module (VLM), acting as an automated elevator to bring stored garments to the picking level.
- Optimized Storage Racking: We redesigned and optimized the existing storage racks, adding tiers to increase vertical storage capacity from three to five levels, maximizing space utilization within the facility.
- Bespoke ERP System: Recognizing the unique needs of a garment rental service, we developed a bespoke Enterprise Resource Planning (ERP) system. This custom-built solution managed the entire picking, packing, shipping, and processing logistics of the rental garments within the facility.
- ERP Integration: To ensure seamless data flow and visibility across the broader organization, we integrated the bespoke garment rental ERP system with Urban Outfitters’ parent company’s existing enterprise systems.
Implementation:
The $25 million project was executed with a focus on minimizing disruption and maximizing impact:
- Detailed Planning and Design: We worked closely with the client to understand their specific requirements and design a tailored automation and technology solution.
- Seamless System Installation: Our team managed the complete installation of the vertical carousel system, VLM, and optimized storage racking.
- Bespoke ERP Development and Deployment: We developed, tested, and deployed the custom ERP system, ensuring it met all functional requirements.
- Comprehensive Integration: We successfully integrated the new ERP system with the parent company’s existing IT infrastructure.
- Thorough Testing and Training: Rigorous testing was conducted to ensure the reliability and efficiency of the new systems. Comprehensive training was provided to the facility staff to ensure smooth adoption.
Results
The implementation of the automated system and bespoke ERP delivered significant and measurable improvements for Urban Outfitters’ garment rental subsidiary:
- Dramatic Picking Efficiency Improvement: The automated carousel system and VLM resulted in a 42% increase in picking efficiency, significantly reducing labor costs and order fulfillment times.
- Significant Long-Term Cost Savings: The $25 million investment is projected to generate over $97 million in savings over the next five years through reduced labor, improved space utilization, and streamlined operations.
- Blueprint for Scalability: This successful implementation serves as a blueprint for potential rollout to four other North American picking facilities, offering a standardized and efficient model for future expansion.
- Enhanced Delivery Performance: On-time and in-full delivery rates soared from 72% to an impressive 98%, leading to increased customer satisfaction and loyalty.
- Maximized Storage Capacity: The optimized storage racking and vertical carousel system effectively addressed the storage space constraints, providing ample capacity for future growth.
- Streamlined Operations: Automation and the bespoke ERP system streamlined the entire garment lifecycle, from receiving to shipping, resulting in a more efficient and cost-effective operation.
Conclusion:
By embracing automation and a tailored technology solution, Urban Outfitters’ parent company successfully transformed their newly acquired garment rental service’s distribution center from a manual, space-constrained operation into a highly efficient and scalable facility. This $25 million investment is projected to deliver substantial long-term savings and has established a best-in-class model for garment rental logistics. Jet Consults is proud to have partnered with them on this transformative project, demonstrating our expertise in delivering innovative solutions that drive significant operational improvements and financial returns.
Looking to optimize your distribution center operations and achieve significant cost savings through automation and bespoke technology solutions? Contact us today to learn how we can help.