LARGE APPAREL BRAND GETS $45M IN PRODUCT RETURNED TO STOCK AND RELIEVES 650K-UNIT BACKLOG

SITUATION

A major-brand omnichannel apparel seller had a returns backlog of 650,000 units of returns blocking forward-bound product in its fulfillment center. Returns weren’t moving out of distribution centers fast enough to accommodate volume from new, higher corporate sales directives for retail and online business. Returns were being liquidated at an unacceptable level of value loss.

STRATEGY

Inmar moved returns processing to its facility to relieve the backlog and retain value:

  • Interfaced with client’s returns initiation platform to automate receipts/credits
  • Replicated client’s specific inspection and repackaging process to evaluate returned products’ eligibility to be returned to stock
  • Implemented new liquidation program to improve value recovery in secondary markets

RESULTS

Inmar cleared a total returns backlog of 650,000 units valued at $45M:

  • Inmar cut the product backlog by more than 75% (250,000 units) in the first 6 weeks 
  • Folded, poly-bagged, and labeled products to return 95%+ to retail stock
  • Processing returns in Inmar facilities allowed rededication of DC space to forward flows
  • 130+ employees were returned to fulfillment duties in the client facility and square footage was dedicated to forward-bound product, meeting throughput for new corporate sales objectives 
  • Extra shifts and weekend work were eliminated

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