Page 102 - Inbound Logistics | April 2017 | Digital Issue
P. 102

An alternate strategy applies to ship-
                                                                            ments bound for Canada, which has
                                                                            different regulations. “We package
                                                                            individually for the end user, but those
                                                                            packages are consolidated into a sin-
                                                                            gle entry,” Haeber says. “That reduces
                                                                            our costs.” After a shipment enters
                                                                            Canada, Indochino breaks it down for
                                                                            final delivery.
                                                                              Like any fashion company,
                                                                            Indochino must carefully manage its
                                                                            relationships with overseas contractors.
                                                                            “Doing business in China is all about
                                                                            capacity planning and commitments,”
                                                                            Haeber says. “Forecasting is critical.”
                                                                              Indochino used to spread its produc-
                                                                            tion across five contract manufacturers
        Indochino sells menswear custom-tailored to the consumer’s exact dimensions. The   in China. “We reduced our risk by hav-
        company had to restitch its supply chain to enable quick delivery and fulfill its “perfect fit”   ing many sources of production capacity,”
        promise.
                                                                            Haeber says. Then, a new production
                                          through the customizations, giving    partner offered to make a strategic invest-
        As You Like It                    recommendations on what’s trend-  ment. Company officials decided to
                                                                            name that partner its exclusive suit sup-
                                          ing in fashion, whether it’s the style of
                                          the pockets, one button or two, wide or   plier. “We will be moving a lot of our
               owadays, personalized style   narrow lapel, pleats in the pants or not,”  shirt production to them also,” he says.
               isn’t reserved just for wealthy   Haeber explains.             Working with one production part-
        N consumers who can take their      Indochino allocates the right fab-  ner makes vendor management much
        desires to a dressmaker or tailor. Thanks   ric from its inventory and feeds all the   simpler. “We have our own production
        to e-commerce and “mass customiza-  details to its factory in China, where a   management staff that oversees what’s
        tion,” you can buy anything from a   software-driven system creates the cus-  going on in the factory,” Haeber says.
        pair of shoes to a complete ensemble   tom pattern. Then the fabric, pattern,  That presence provides visibility, a cru-
        made to your measurements, with the   and associated buttons and trim move   cial element in the made-to-measure
        fabric, color, trim, and other elements   from station to station on the pro-  business model.
        you prefer.                       duction floor. Workers cut the fabric,   “If we have a production problem, we
          Among the notable players in this per-  assemble the garment, iron it, and send   can’t just tell the customer, ‘Sorry, the
        sonalized fashion market is Indochino,  it through several stages of inspection   suit for your wedding will arrive late,’”
        a Vancouver-based firm that special-  and quality control.          Haeber says. “Having a tight partner-
        izes in custom-tailored men’s suits and   Indochino ships its finished products   ship with the factory, being able to
        shirts, plus accessories. Indochino sells   from the factory via air to customers   track orders and proactively identify
        its made-to-measure clothing through   around the world, with most packages   bottlenecks or other production issues,
        its website and one dozen showrooms in   bound for North America.    becomes critical.”
        Canada and the United States.       It takes about 11 days from the time
          Whether he checks out suits in per-  a customer places an order to the time
        son or peruses the selection online, the   the finished product goes out the door.  Life of Athleisure:
        customer who orders from Indochino   That quick turnaround is crucial, as is
                                          air transportation. “A high percentage  Spandex Meets
        starts by providing measurements. For
        e-commerce customers, Indochino uses   an occasion—a wedding, a graduation,  Cashmere
                                          of our customers are buying clothes for
        a video to show how to collect the right
        data and provide information about   a new job—so they’re on a deadline,”
        posture and body shape. These details   Haeber says.                    eggings, running shoes, yoga
        are crucial for ensuring that the gar-  Indochino ships packages to the   pants—you see them everywhere
        ment will fit and drape correctly, says   United States individually, to take  L from family parties to the grocery
        Clay Haeber, Indochino’s chief operat-  advantage of a rule that allows items   store to Sunday brunch. The athlei-
        ing officer.                      worth $800 or less to enter the coun-  sure wear trend stems from the public’s
          Next, the customer picks a fabric and   try duty-free, as long as the shipment is   love of comfortable fabrics, and from a
        color. “Then we’ll walk the customer   addressed to the actual end consumer.   desire to look fit and energetic even in


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