CASE STUDY
UPSTREAM FULFILLMENT

A fulfillment solution for improved customer experience and reliable, cost-effective logistics across channels
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A PLATFORM FOR GROWTH. Arrangement of shipments and delivery into store, including packaging and placement into store.

WE WANT TO HEAR FROM YOU


CUSTOMER 

HERSCHEL SUPPLY CO.

SERVICE 

UPSTREAM FULFILLMENT

INDUSTRY 

FASHION & RETAIL

 

 

OVERVIEW

Founded in 2009 by brothers Jamie and Lyndon Cormack, Herschel Supply Co. is a design-driven global travel lifestyle brand producing timeless products with utility design for the modern traveller. Originally renowned for their contemporary renditions of classic backpack silhouettes, Herschel Supply's range has since expanded to include luggage, travel accessories, wallets, apparel, and more.   

Herschel Supply sells in over 90 countries worldwide and operates 44 company-owned retail locations, from Hong Kong to Dubai to Paris. Additionally, Herschel Supply sells product around the world through international distributors and direct to consumer channels. With multiple seasons per year, over 8,000 stock keeping units (SKU’s) available, and a sourcing strategy across multiple countries and suppliers, they needed a flexible model to support fulfillment across sales channels.

Read What is Upstream Fulfillment? >>

 

TABLE OF CONTENTS


OVERVIEW

THE OPPORTUNITY

CUSTOMER TESTIMONIAL

OUR SOLUTION

THE RESULTS 

THE OPPORTUNITY 

Herschel Supply was experiencing challenges managing documentation release to the multitude of freight forwarders used by Herschel Supply’s various distributors, which resulted in delays in their vendors applying for export tax refunds and the ability to fill orders to their international dealer customers. They needed a flexible model that would provide a superior customer experience while mitigating the logistics costs of assembling global orders for their international dealers.

Additionally, Herschel Supply was presented the opportunity by several vendors to attain additional discounts on products purchased by agreeing to overbuy additional product. However, Herschel Supply did not have accurate demand plans at the time of order to allocate the added product to appropriate sales channels.

Through prior experience, knowledgeable resources, and leveraging Expeditors global network, Herschel Supply and Expeditors developed an Upstream Fulfillment model that would provide the flexibility Herschel Supply needed to resolve both challenges.

 

"Expeditors' Upstream Fulfillment model provided Herschel Supply Co. the flexibility necessary to deliver an improved experience to our vendors and global distributors. It also gave us more agility to take advantage of immediate opportunities in our sourcing strategy and new market development."


LAN NGUYEN
SVP, Operations
Herschel Supply Co.

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our solution

Due to a concentration of vendors in or near Shanghai, China, Expeditors focused on locating the operation in a bonded logistics park (BLP) close to Herschel’s vendor base. The use of a BLP enabled Herschel Supply to receive goods and hold the goods for export without added Customs formalities, and release required documents for their vendors to apply for export tax refunds. It also gave Herschel Supply the ability to take advantage of the overbuy discount offered by vendors without having to ship the additional product to a DC to be held until allocated to a sales order.

The solution implemented provided both carton level PO consolidation as well as delayed allocation pick and pack services supported by a wide range of value-added services that include labeling, quality inspection and certificate of origin coordination.

 

THE RESULTS

The Shanghai Upstream Fulfillment hub delivers complete orders to around 30 distributors each season, helping to expand sales to more countries through more channels, covering full range of Herschel Supply’s products of backpacks, accessories, apparel, and luggage for each product launching season.

After implementing the Shanghai operation, Herschel Supply began selling products on the T-Mall Baozun ecommerce marketplace and needed a solution to support fulfillment of orders domestically within China. The flexibility of the Upstream Fulfillment operation allowed Herschel Supply to do this through the same Shanghai hub. Products could enter the BLP and then be declared with Customs and withdrawn to fulfill ecommerce orders or deliver direct to store to replenish.

The success of the first Upstream Fulfillment hub has led to establishment of additional sites in Vietnam to better serve the growing vendor base and distributor network in Southeast Asia. The latest B2C fulfillment center setup in Hong Kong, accelerating the sales on customer direct order in Asia Pacific region. It helps shortening the fulfillment lead time and shipping cost to direct customers in Asia.

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