By Matthias Vandecasteele, Sales Manager for Lifestyle at Bleckmann
For fashion and lifestyle brands with an omnichannel strategy, inventory accuracy and visibility are paramount. Read on to discover how changing consumer expectations, new transparency regulations, and the complexity of modern supply chains have increased the need for comprehensive data collection and management – and how a logistics provider can help.
Consumer expectations are evolving, with many now demanding clarity and transparency from brands on the sustainability of their supply chains. For example, 66% of consumers surveyed by McKinsey say they actively consider sustainability when making purchases.1 And it’s not just customers who are pushing brands to be more transparent. Customs legislation that came into force in Belgium and the Netherlands in 2024 now requires brands to be more transparent about the origin of their products and the journeys they take to reach consumers. This will require a centralised, transparent and agile data-sharing setup to make products easily traceable.
Data is also essential for achieving optimum operational efficiency. A logistics model that incorporates data from multiple channels simultaneously enables streamlined inventory management. For example, multiple sales channels can be served from the same central warehouse, helping to manage stock levels and maintain full visibility of the supply chain. Maintaining real-time data can also be instrumental in forecasting demand. Brands can analyse information from multiple channels simultaneously and react quickly to problems and opportunities. This allows for faster response times and more effective decision-making.
Your trusted partner for data-driven omnichannel fulfilment
Optimising operational efficiency while meeting consumer demands for greater transparency can be challenging. A robust enterprise resource planning (ERP) system is a key tool for streamlining and tracking business processes. These holistic platforms encompass financial, operational, supply chain, inventory and human capital data. ERP systems can also help companies comply with industry regulations critical to logistics, such as customs, traceability and product safety. Combined with strong warehouse management and transportation management systems, a robust ERP system helps brands capture and access data more efficiently. This allows for agile and flexible management of warehouse space and human capital throughout the year to manage peaks and troughs in demand. It also means that data from different sales channels can be consolidated, enabling early identification of supply chain risks so mitigation measures can be implemented. This kind of holistic omnichannel visibility is necessary to ensure your brand can proactively deal with supply chain issues.
Getting closer to your customers
Collecting and analysing data across channels can also be a valuable marketing tool for brands. For example, implementing a loyalty scheme that operates across e-commerce and physical retail channels can help a brand gain a deeper understanding of its customers’ spending patterns – which can be used to inform future marketing initiatives. Because so-called hybrid consumers – those who shop both in-store and online – tend to spend more on average than online-only shoppers2, this data is particularly important. Data collected across all channels makes it easier to track customers, helping brands to meet their needs more effectively.
One example of a brand that has invested in its loyalty scheme to drive sales is Levi’s. Faced with rising customer acquisition costs, the brand doubled down on its existing fan base. Its Red Tab™ programme enabled it to collect data on both online and in-store activity to build a much richer picture of customer behaviour3, driving operational efficiencies and revenue growth. Meanwhile, H&M is also using loyalty programme and supply chain data to get closer to its customers – as a key input for its AI-driven trend forecasting efforts.4 This helps the brand ensure that the styles it stocks are more in tune with customers’ tastes, improving sell-through and reducing overproduction. Inventory visibility can therefore be key to targeting growth.
Creating a more resilient supply chain
A data-driven omnichannel strategy can also improve logistical flexibility from an operational perspective. Real-time inventory information can help manage human capital, allowing operations teams to determine exactly when and where staff and warehouse capacity are needed. Real-time inventory accuracy is also essential for implementing flexible scaling, allowing brands to increase logistics capacity in line with demand. A close and collaborative partnership with your logistics provider is essential to facilitating such an adaptive strategy.
Unlocking the potential of inventory visibility
In today’s logistics landscape, integrated data management is the key to building a transparent, resilient and agile supply chain – enabling you to deliver an exceptional customer experience. From cost optimisation and resource allocation to demand forecasting and regulatory compliance, inventory accuracy and visibility are critical for omnichannel fashion and lifestyle brands. And a third-party logistics (3PL) provider can help you unlock the power of an integrated and data-driven approach to inventory management.
Want to find out more about the use of data in omnichannel logistics? Keep an eye out for my next blog! And if you’d like to talk to a Bleckmann expert about your brand’s omnichannel strategy, get in contact today for a free consultation.
