Supply chain snarls continue to limit availability of new inventory. Retailers are responding by getting returned items on-sale faster, particularly as e-Commerce increases the percent of returned items.
Companies are investing in multiple ways to cut the time for returns to become salable inventory. Gap lost ~$300 MM in sales in 3Q21 due to lack of inventory, so added new automation to help returns become “in stock” within an hour of arrival at a warehouse versus several days previously. Brooks Brothers and Crocs are testing a service with GoPigeon (Now Narvar) to pick up shoppers’ returns to get items to warehouses faster. AMERICAN EAGLE OUTFITTERS INC. set up more warehouses to receive/repackage returns and prioritized hard-to-get items, cutting time to return to shelf from 14 days to 6 days.
MOSIMTEC simulation modeling can help retailers develop/implement innovative solutions to get returns on sale faster. Explore options virtually to see what works best and what doesn’t before implementing in the real world. Evaluate warehousing, automation, software, systems, processes and more to predict outcomes, decide actions and improve operations. Take action to enhance KPI’s and your bottom line. MOSIMTEC data scientists/industrial engineers are here to help. Read more about our simulation consulting services here: https://mosimtec.com/simulation-consulting/
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Read more here: https://www.wsj.com/articles/stores-are-getting-your-christmas-returns-back-on-shelves-fast-11640610002