Fashion Warehousing: What You Need to Know

Key takeaways

• Fashion warehousing is vital for managing inventory, seasonality, and SKU complexity in the fast-paced fashion industry.
• Automation enhances speed, accuracy, and scalability and reduces operational costs in warehousing operations.
• RFID and robotics are transforming fashion warehousing, improving stock tracking and operational efficiency.
• Three fashion retailers that are crushing it with AutoStore!

What is fashion warehousing?

Fashion warehousing is the specialized storage and management of apparel, footwear, and accessories within the supply chain. It plays a pivotal role in ensuring these products move seamlessly from manufacturers to retailers or customers, keeping pace with the fashion industry’s fast-moving demands.

Unlike traditional warehousing, fashion warehousing prioritizes agility and accuracy to ensure that items are always in the right place at the right time. This flexibility is crucial for meeting customer expectations and staying competitive in a fast-paced market.

Fashion warehousing stands apart with its unique challenges, from managing countless SKUs to keeping up with seasonal surges. But how can businesses tackle these hurdles and stay ahead in a fast-paced industry? Let’s explore the key obstacles and how to overcome them.

Navigating the unique challenges of fashion warehousing

What sets fashion warehousing apart is its ability to handle unique challenges that other industries rarely face. It presents challenges that directly impact efficiency and profitability. To stay competitive, businesses must address these hurdles effectively.

Inventory turnover: Rapid trend changes and short product lifecycles demand quick inventory movement to avoid overstocking outdated items and missing new trends.

Seasonality: Fashion demand spikes during key seasons. Warehouses must scale operations to handle surges and store off-season stock without disrupting the flow of in-demand products.

SKU complexity: With countless sizes, colors, and styles, managing a vast number of SKUs requires precise organization and tracking systems.

Overcoming the challenges of fashion warehousing is no small feat, but innovation holds the key. How can businesses boost efficiency, accuracy, and scalability to meet industry demands? The answer lies in automation. Let’s dive into how cutting-edge technology is transforming fashion warehousing.

Why automating fashion warehousing is a game changer

Could your business benefit from automation? You see, automated warehousing systems are transforming the way fashion businesses manage their supply chains. By integrating advanced technologies, these systems tackle industry challenges head-on, ensuring smoother, more efficient operations.

Inventory accuracy: Automation reduces human error by using precise tracking systems, ensuring correct stock levels and minimizing costly mistakes like stockouts or overstocking.

Speed: Automated systems speed up order fulfillment, allowing for faster picking, packing, and shipping. This efficiency is critical in meeting the fast-paced demands of customers who expect quick delivery.

Scalability: Automated solutions easily scale to handle fluctuating order volumes and seasonal peaks. Whether it’s a holiday rush or a new fashion season, automated systems can adjust operations without compromising performance.

Cost savings: Automation helps optimize resource use, from reducing labor costs to maximizing warehouse space. The result is lower operational costs and more efficient use of resources.

Improved customer satisfaction: Reliable and fast deliveries lead to higher customer satisfaction. Automation ensures that fashion items are available and shipped on time, boosting brand loyalty and repeat business.

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Automation is just the beginning of the transformation in fashion warehousing. The technologies powering these advancements are pushing boundaries even further. From robotics to radio frequency identification (RFID), let’s explore the cutting-edge tools that are shaping the future of this industry and setting new standards for efficiency and accuracy.

Key technologies shaping the future of fashion warehousing

Several cutting-edge technologies are revolutionizing fashion warehousing, driving efficiency of operations. Here’s how they’re making a difference:

Automated storage and retrieval systems (AS/RS): AS/RS systems optimize storage density by automatically organizing products in vertical storage racks. They reduce the time spent locating items and improve retrieval speed, which is essential when dealing with large volumes of fashion products.

Robotics: Robotics is transforming warehousing by reducing manual labor, speeding up tasks like picking, sorting, and packing. Robots work alongside human workers to increase throughput, reduce errors, and lower operational costs.

RFID: RFID technology provides real-time tracking of inventory, improving visibility and accuracy. By scanning RFID tags on fashion items, warehouses can track product movements instantly, leading to better stock management and fewer discrepancies.

These technologies are transforming fashion warehousing, but automation isn’t just about boosting efficiency — it’s also a powerful tool for promoting sustainability in fashion warehousing. Next, we’ll explore how automation helps businesses reduce waste, conserve energy, and build greener supply chains.

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How automation drives sustainability in fashion warehousing

Automation doesn’t just improve efficiency — it also supports greener, more sustainable practices in fashion warehousing. Here's how:

Reducing waste: Automated systems help minimize overproduction and inventory mismanagement by providing real-time data on stock levels and demand trends. This results in less unsold merchandise and fewer discarded items.

Energy-efficient systems: Many automated systems are designed to be energy-efficient, using less power than traditional manual operations. Energy-saving technologies, like LED lighting and optimized climate control, reduce the carbon footprint of the warehouse.

Sustainable practices: Automation enables smarter routing, minimizing the travel distance for goods, reducing fuel consumption, and optimizing storage space. This not only conserves resources but also lowers emissions associated with transportation and storage.

Sustainability is just one of the ways automation is transforming fashion warehousing. But the future holds even more exciting possibilities. Let’s dive into the emerging trends shaping the industry and discover how they’re setting the stage for a more innovative and customer-focused supply chain.

Emerging trends in fashion warehousing

Fashion warehousing is evolving with key trends that can reshape the industry:

AI and machine learning: These technologies enhance demand forecasting, inventory optimization, and decision-making, reducing stockouts and excess inventory.

Omnichannel fulfillment: With the rise of seamless shopping, fashion warehouses are integrating retail, ecommerce, and direct-to-consumer channels for faster and more flexible order fulfillment.

Customized storage solutions: Warehouses are moving towards tailored storage options like modular racking to improve space efficiency and storage capacity.

As these trends reshape fashion warehousing, AutoStore takes it a step further with innovative automation solutions. Let’s see how AutoStore is optimizing operations for the future of fashion warehousing.

How AutoStore optimizes fashion warehousing

There's a reason why over 270 warehouses distributing fashion apparel, accessories, luxury items, and sportswear use AutoStore. By automating key processes, the good-to-person technology helps these businesses achieve faster deliveries, reduce costs, and enhance customer satisfaction, particularly with e-commerce.

Get the basics on how AutoStore works.

The results speak for themselves. Here are three fashion retailers that are crushing their KPIs using AutoStore.

Cutter & Buck

AutoStore has significantly transformed Cutter & Buck's warehousing operations, addressing their need for a scalable logistics solution to keep up with growing online demand. By implementing AutoStore's automated storage and retrieval system at their fulfillment center in suburban Seattle, Cutter & Buck has achieved remarkable improvements in efficiency and speed.

“AutoStore helped us to have the largest, most profitable fourth quarter that we’ve ever had in the history of Cutter & Buck. A large part of that is built on the speed and the efficiency that we get through all of our processes, and the cornerstone of that process here at this operation is AutoStore.”

— Joel Freet, CEO, Cutter & Buck

The system's goods-to-person principle, which keeps pickers stationary while robots retrieve totes from a high-density storage grid, has eliminated travel time within the warehouse. This has enabled faster and more accurate picks, allowing Cutter & Buck to handle increased order volumes with fewer staff, especially during peak seasons.

The impact of AutoStore on Cutter & Buck's operations has been profound. The company experienced its most profitable fourth quarter in history following the system's implementation, with a 60% reduction in peak season staff and the ability to fulfill orders in just 10 minutes. This efficiency has not only improved customer satisfaction but also provided the capacity for future business growth. The seamless integration of AutoStore has revolutionized Cutter & Buck's fulfillment process, making it more agile and responsive to market demands.

Benetton

AutoStore has played a pivotal role in revolutionizing Benetton's warehousing operations, addressing the company's need for enhanced efficiency and space utilization. By implementing the AutoStore system, Benetton has tripled its storage density and doubled operational efficiency, significantly reducing errors and streamlining operations.

“It allows us to accept orders up to the last minute and still ship them the same day. Even if an order comes in just one hour before the courier's pickup, we can still dispatch it that day with the new system.”

— Matteo Miele, Warehouse Operation Manager, Benetton

This transformation has enabled Benetton to efficiently manage both B2C and B2B orders, maintaining staff levels while processing up to 15,000 order lines per day with increased accuracy. The system's high throughput and scalability have allowed Benetton to meet growing online demand, ensuring same-day delivery for orders placed just one hour before the courier's pickup.

The adoption of AutoStore has also brought about notable improvements in workforce training, safety, and ergonomics. The system's design minimizes idle times and reduces goods-handling by 50%, creating a more efficient and safer working environment. This has not only enhanced the overall productivity of Benetton's logistics operations but also provided the flexibility needed to adapt to changing market demands. The seamless integration of AutoStore into Benetton's existing infrastructure has proven to be a game-changer, enabling the company to maintain its competitive edge in the fast-paced fashion industry.

Fenix Outdoor Logistics

AutoStore has significantly enhanced Fenix Outdoor Logistics' warehousing operations, addressing their need for efficient space utilization and scalability. By implementing AutoStore's automated storage and retrieval system, Fenix Outdoor Logistics achieved a 75% space savings, allowing them to manage their growing order volumes without the need for additional warehouse space.

“The system is fully utilized, but it can be flexibly expanded and thus adapted to our growing requirements. We are currently discussing mirroring the system in the neighboring hall, or alternatively, gradually doubling the throughput capacity (by adding) Robots and Ports.”

— Hans-Joachim Heuer, Director Supply Chain Management, Fenix Outdoor Logistics

The system's compact design requires just 25% of the area that a traditional manual warehouse would need for the same volume of goods, enabling Fenix Outdoor Logistics to streamline their e-commerce operations and support the group's omnichannel retail and brand operations across Europe.

The impact of AutoStore on Fenix Outdoor Logistics has been profound. The system was implemented in just six months, and it has significantly increased shipping volumes and efficiency. With 85% of SKUs now managed by AutoStore, the company can handle seasonal peaks and growing order volumes more effectively. The flexibility of the AutoStore system allows for easy expansion without interrupting regular operations, ensuring that Fenix Outdoor Logistics can continue to meet future needs in the competitive European outdoor retail market.

Conclusion

In conclusion, fashion warehousing is essential for keeping pace with the rapid demands of the fashion industry. By tackling challenges like seasonality, SKU complexity, and fast inventory turnover through automation and advanced technologies, businesses can improve efficiency, reduce costs, and boost customer satisfaction. Ready to optimize your fashion warehousing? Contact AutoStore to learn how our innovative solutions can streamline your operations and drive success.

FAQ

What is a warehouse in the garment industry?

A warehouse in the garment industry is a facility used to store and manage clothing, footwear, and accessories before they are distributed to retailers or customers.

How are clothes stored in warehouses?

Clothes are typically stored on shelves, hanging racks, or in bins, organized by categories like size, color, and style to optimize space and retrieval speed.

What is the difference between store keeping and warehousing?

Storekeeping focuses on managing inventory within a store or retail environment, while warehousing involves the storage, organization, and distribution of goods in a larger, centralized facility.

What is the best storage for clothing?

The best storage for clothing includes hanging items in garment racks for wrinkle-free storage, using shelves or bins for folded garments, and implementing climate control to prevent damage from humidity and temperature fluctuations.