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Advanced returns system turns cost center into profit producer for global footwear leader
One of Europe’s leading online shoe retailers, selling more than 700 brands, was looking for a partner to support its rapid growth across the European continent and to support the company’s commitment to providing its customers with 100% free returns for 100 days following a purchase.
Its customers return approximately 25% of their orders. Returns need to be processed within 4 days to ensure the consumer can be refunded within a week with no additional cost to the business.
This retailer partnered with GXO to develop a solution to the returns problem. Together, we designed and implemented a 19,500-square- meter, ultra-modern, almost fully automated European distribution center.
GXO’s holistic approach began with auditing the returns process. The audit revealed the challenge was to implement a new scalable solution that facilitates quick restocking of compliant articles as well as a controlled circuit for rejected articles, either discarding them, returning them to the supplier or donating them to charities. The audit also identified the opportunity for a rail-mounted moving mast that picks stock and dispatches it to designated stations where GXO teams check and pack the orders.
In addition to approximately 2.6 million pairs of shoes and accessories stored on site, the facility can accommodate additional flexible workstations as volumes increase. This provides the quickly adaptable logistics support the customer needs to implement its growth strategy across Europe.
GXO provided the following services to optimize logistics processes, providing efficiency gains and ensuring the customer could deliver superior service to its end-consumers:
• Personalized gift packaging and easy-open boxes using one of GXO’s technical solutions
• Unique article traceability
• Mechanized and secured storage in 23 mini loads
• Goods-to-person preparation and express shipping
• Staff flexibility and expertise in reprocessing and repackaging processes