fashionLogistics
AN EXAMPLE of the changing pattern of fashion logistics operations when it comes to high-end goods is provided by Geodis Wilson, a global freight management company that forms part of French rail and freight group SNCF. The company, which claims to have been a leading player in fashion logistics for
several decades, manages the supply chain for a lot of high- end fashion brands from China/Hong
Kong to Europe but also moves high-end luxury goods from Europe into China/Hong Kong.
George Varghese, a fashion
sector expert working for Geodis Wilson Hong Kong, explains that the example involves a UK fashion company with 2,500 retail outlets in 42 different countries. “When Geodis Wilson
approached the UK company, its was operating its own distribution centre in the UK; all freight was first moved into a UK centre and then shipped to various stores worldwide. However, the company did face issues with longer transit times and high operating costs,” he told Air Logistics China. “After discussions with Geodis
Wilson, the customer realised that the solution was obvious – move the distribution centre upstream to Asia, where virtually all their products were being manufactured, and make it a global distribution centre. “We have been able to implement a fully-fledged ‘direct to store’
programme at Shenzhen for this customer, involving a set of value-added services which enables the customer to improve vendor compliance, reduce transit time and increase transparency, and also the cost transparency, of their supply chain,” Varghese concluded.
Indonesia, Vietnam and Cambodia. China is still going to be the largest manufacturing area and exporter for years to come but its piece of the overall pie will get a little smaller from a percentage point of view,” he said. Peter Wielockx, the Belgium-based global industry
director, lifestyle for TNT Express, which is looking to substantially expand its existing activities in the Asia Pacific region fashion logistics market over the next few years (see Panel page 28), highlights another anticipated trend in that market with implications for the air freight/ air express industry. “In the case of luxury
products being exported from, say, Europe into Asia, the current pattern is to fly or ocean freight those goods from the manufacturing base in Europe directly into a platform
32 AIR LOGISTICSCHINA
Wielockx sees need for a faster time to market
or warehouse in each of the individual Asian countries where they are being sold,” he said. “What I think you will see increasingly happening in
future is that companies selling luxury fashion goods in the Asia Pacific region will get rid of some of their local warehouses and instead use Hong Kong, for example, as a regional distribution centre and replenish stores in other Asian Pacific countries from there, using air express and air freight. The reasons for that will include reduced inventory costs and faster time to market.”
SEA-AIR OPTION A specific example of other changing patterns of fashion logistics operations in the Asia Pacific region when it comes to high-end goods is provided by Geodis Wilson, a global freight management company and part of French rail and freight group SNCF (see Panel above). However, while many of the current general global
fashion industry trends appear positive for providers of direct air freight and air express services, the need to contain costs is also encouraging retailers and manufacturers to seek cheaper transport options for some
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