Multi-channel logistics for the fashion industry
In the past, having the option to browse and buy a wide range of products around the clock, and being able to deal with both a company’s online and retail stores interchangeably was something consumers could only ever dream of. But that’s no longer the case thanks to ADD/UP, a new joint venture between Hamburg-based mail order fulfilment house Hermes Fulfilment and Osnabrück-based fashion logistics provider Meyer & Meyer. The two organizations are combining their expertise to create a brand-new service for the fashion industry: "Until now, there has been no comparable solution on the market that brings together both distance selling and store-based retailing in this way," comments Meyer & Meyer CEO Michael Meyer.
Previously, a company’s online/mail order and retail operations were generally run as separate entities. Not any more, thanks to the creation of ADD/UP. With its integrated multi-channel approach, this new joint venture will bring together and manage all of a company’s distribution channels centrally. "This way, consumers will have complete freedom to shop where and how they want, and access the complete range of fashion items," explains Dieter Urbanke, CEO of Hermes Fulfilment. For example, customers will be able to order an item they have seen in a catalogue by phone, have it delivered by courier to their home, and return it in person to their nearest store for a cash refund or exchange if they don’t like it.
This multi-channel approach also benefits retailers, as it means they can offer their customers a greater range of products through all their distribution channels, and a more flexible shopping experience. In the face of ever shorter collection lifecycles, the option to sell products via various channels means that the risk of having to write down stock is reduced. "If an item has sold particularly well through one channel, the retailer has the opportunity to top up supplies from other channels at any time," explains Dieter Urbanke. "What’s more," adds Michael Meyer "the fact that they can access consumers’ account details through various channels offers a completely new dimension in cross-selling."
ADD/UP’s services are primarily aimed at European consumer goods retailers, particularly those in the fashion industry. Together, Meyer & Meyer and Hermes Fulfilment have all the necessary expertise to effectively serve their customers: the former has extensive experience as a service provider for store-based retailers, while the latter is an expert in mail order fulfilment. ADD/UP is is headquartered in Hamburg, and ownership is split 50:50 between the two joint venture partners.
Today, ADD/UP was presented to the industry for the first time at the Deutscher Versandhandelskongress (German congress for distance selling) in Wiesbaden.