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Logistics & Distribution: Case Study-Fashion Point Corporation

Fashion Point Corporation is a merchandiser of men's and women's fashion apparel that contracts with local and international manufacturers. It aims to offer customers the best products, quality, and service. Products are marketed through catalogs and online. Timely order fulfillment and accommodating returns are critical but expensive. The company ships products to distribution centers in Delhi and Bangalore and uses carriers like UPS for last-mile delivery. Its logistics information system must track sales, purchasing, inventory, online orders, customer service, and transportation to adapt to changing customer tastes and demands.

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Keshav Lakhotia
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50 views20 pages

Logistics & Distribution: Case Study-Fashion Point Corporation

Fashion Point Corporation is a merchandiser of men's and women's fashion apparel that contracts with local and international manufacturers. It aims to offer customers the best products, quality, and service. Products are marketed through catalogs and online. Timely order fulfillment and accommodating returns are critical but expensive. The company ships products to distribution centers in Delhi and Bangalore and uses carriers like UPS for last-mile delivery. Its logistics information system must track sales, purchasing, inventory, online orders, customer service, and transportation to adapt to changing customer tastes and demands.

Uploaded by

Keshav Lakhotia
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Logistics &

Distribution
Case Study- Fashion Point
Corporation

Group-5
Fashion Point Corporation

• Merchandiser of contemporary fashion apparel


for men and women.
• Not a manufacturer.
• Company contracts with local manufacturers &
also imports from Korea, Hong Kong, Taiwan
and Singapore.
• Offers the best product assortment, product
quality and customer service.
• High quality catalogue sent to prospective
customers.
• Order received by mail or on a toll-free
telephone number.
• Growing, but it is fiercely competitive.
• Target customers- Young working couples.
Benefits

Appealing alternative for people who


are “just-to- busy” to shop at retail.
Offers element of prestige in social
circles.
• Fashion.com, provides full catalogue
& ordering services for on-line
customers.
Customer Service

• Two critical elements :


i)Company receives, packs and ships orders in
a timely manner to ensure that product return
procedures are “customer friendly”.
ii)Although the company accommodates product
returns with “little-or-not-bother” to the customer,
is practice is expensive and of growing concern
to the higher management.
Distribution Channel

• Shipping container loads of labeled and pre-tagged


merchandise by combination of ocean
transportation and domestic inland motor freight to
a centralized distribution centre in Delhi and
Bangalore.

• Subsequent movements to individual customers


are made by companies like UPS and Federal
Express.
Company Issues

• Unpredictable and changing


customer tastes/demands.
• Occurs in midst of the selling season
Components of the Logistic Information System Important to
Fashion Point

• Sales
• Purchase
• Inventory
• Online Logistics
• Customer Service
• Transportation & Delivery(DC)
LIS for Sales

• Through traditional catalogues &


online portal (fashion.com).
• Keeping up with changing consumer
preferences.
• Customize in a way to suit young
working couples.
LIS for Purchase

• Timely procurement of Apparels


• Continuous supply
• Fashion Market Forecast
• Procuring Bulk Quantities
• Cost Reduction through appropriate
channels of Distribution
• Quality improvement
LIS for Inventory

• Software for Stock Maintenance


• Replenishment of stocks.
• Tailor made – ERP
• Packaging
LIS for customer relationship

• There are 3 phases –


• Pre transaction
• Transaction
• Post transaction.
• Responsiveness to order
LIS for Transportation

• Shipment consolidation through


centralized DC (Delhi, Bangalore)
• Tie ups with UPS and Federal
express for efficient and cheap
delivery
Suggestions for Improvement of Company’s Logistics
Information System

• Tracking
• Organising
• More no. of centralised DC
• Customised transportation
• Payment collection on delivery (COD)
• Stock availability
• Direct shipping
LIS for Online Logistics

• B2C-Direct business to consumer


• Co-ordination with purchase &
inventory
• Online Payments System ensuring
transaction security
• Offering services like- order
postponement, cancellation,
substitutes
LIS for Online Logistics

• Reverse Material Flow in case of


goods return
• Incase the inventory is not available
the customer needs to be informed
and be offered refund or substitutes
• Responsiveness
• Online order status & documentation
• Customer Service
Logisitcs Challenges for
Fashion.com

• Online Transaction Security


• Order Processing
• Inventory Management
• Order Execution
• Tracking Shipments
Macro environmental factor critical to Company’s future
success

• Growing Market
• Escalating and varying customer
demands, tastes and preferences
• Information Coordination Capability
• Fashion-Dynamics
• Inbound Transportation Cost
• Responsiveness
• Assortment of products
Logistic capabilities to address
these factors
• Response time should be less/quick
• Diversified Product Portfolio-good variety
• High Product Availability
• Faster time to market the products
• Continuous Interaction with the customers
so as to increase performance capabilities
• Tie-ups with Shipping Companies
• Provide Customization Services
We are Group 5
Mayank
Aanchal Jain
Gajra Nikhil
Manish Adesara
Jivani
Tejas jain
h boo
s Keshav
Khu shi
Do

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