Bradford based Advanced Supply Chain is aiming to change how fashion retailers deal with their costly returns process, as eCommerce becomes a core revenue stream for the major brands.
The global supply chain provider has launched ‘ReStore’ – a returns service it hopes will stem the losses incurred by retailers due to inefficient and inadequate returns processes.
Only last year Retail analyst firm IHL Group reported that revenue losses per annum due to preventable returns cost retailers more than £400 billion worldwide.
Ben Balfour, Advanced Supply Chain’s commercial director, explains: “Retailers are focused on driving revenues up and increasing their sales figures year on year. We are looking to educate them that by not revisiting their ‘lost’ stock, they are haemorrhaging profits and making their business much less successful.
“All too often customers return items in a condition that renders them unfit for resale, leaving retailers with a stark choice – refuse the return and risk damaging customer relations, or write down the value of the stock, often significantly. With ReStore, we are giving retailers a third option.”
Ben further claims the ReStore service has been incredibly well received during its trialling. Indeed, one major retailer used ReStore to process a batch of return merchandise worth £80,000, investing £20,000 to do so. The returned stock was restored to a full retail value of £350,000.
“That’s a massive return on investment of £250,000 for a small batch of garments,” adds Ben. “For large retailers to replicate that throughout their operations could redefine how eCommerce is viewed by retailers.”
Advanced Supply Chain began life specialising in garment processing, and has broadened its services to include haulage, distribution, warehousing and logistics.
The business now delivers revenues in excess of £50 million, and is one of the fastest growing logistics and supply chain operators in the country, with a workforce of around 600.
Advanced Supply Chain manages more than 1.4 million sq. ft. of storage, warehousing and distribution space, across eight UK sites. The firm handles 3.5 million parcels a year, within more than 200,000 collections and deliveries.