What were the challenges faced by gant apparels

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Reference no: EM133298865

Case study - Gant: Apparel retailer

GANT started in 1910 in New Haven, Conn., with one man's vision to create the perfect Oxford cloth button-down shirt. Over the years, GANT developed into a global lifestyle label for the entire family, with sales activities in over 70 countries. The company, which is headquartered in Sweden, offers apparel, footwear, linens and housewares.

Rapid time-to-market performance enables companies to capture retail sales when customers are buying. When the new UK management team for GANT saw turnaround times from order to delivery of nearly three weeks, they knew something had to change. Too much old inventory and too great an emphasis on airfreight were affecting profitability. In addition, the team had been charged with changing GANT UK's role in the supply chain from supporting nearly exclusively the company's wholesale functions to a balance of wholesale and retail channels.

GANT decided to capitalize on the retail expertise and capabilities of EXPRESS Logistics, including their robust warehouse management technologies and local capacity. Implementation of the solution started in December 2008. GANT moved its warehouse operations into the EXPRESS Logistics warehouse facility in Hemel Hempsted, which runs the PKMS® warehouse management system for integrating warehouse, labour, transportation and inventory logistics. The EXPRESS Logistics transportation services were based on a "cost-plus" structure, making transportation expenses transparent to GANT while reducing their actual cost-per-shipment charges. This solution also enabled EXPRESS Logistics to provide on-site, real-time customer service for GANT, answering their customers' questions and resolving their issues on the spot.

Since the initial implementation, EXPRESS Logistics identified and implemented additional efficiencies throughout the GANT distribution process. Building on their success with continuous year-over-year cost savings, GANT now turns to EXPRESS Logistics for packaging product for its Swedish and German operations and implementing a retail-specific e-commerce process.

The results were fruitful. Initial Key Performance Indicators called for a 15 percent improvement on all of the prior service provider's metrics within a six-month period. EXPRESS Logistics achieved this and more. With greater visibility and better control over its inventory, GANT cut its reliance on airfreight by 70 percent in the first year. At the same time, the turnaround time from order to delivery went from approximately three weeks to less than seven days. Overall, EXPRESS Logistics saved GANT 20 percent on transportation and warehousing in year one, and an additional 10 percent in year two and they continue to implement innovative solutions that improve GANTS' Supply chain.

Question 1. What were the challenges faced by GANT apparels?

Question 2.Briefly summarize the solution implemented by EXPRESS logistics.

Question 3.What were the results of the solution or the benefits for GANT Apparels?

Reference no: EM133298865

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