The Real Handbag Shop: www.realhandbagshop.co.uk
From back bedroom to Amazon best seller
The Customer
The Real Handbag Shop are designers and distributors of high quality leather handbags, purses and messenger bags.
Customer profile
The business was founded in 2006 by two entrepreneurs, who identified a gap in the rapidly expanding online market for quality handbags at affordable prices. The Company currently uses the primary routes to market of Amazon & EBay whilst also operating from the dedicated website of www.realhandbagshop.co.uk
The Client has since evolved through the typical growth cycle of a cottage industry onto industrial unit and finally onto a fully outsourced warehouse solution with 3P Logistics in September 2008. In recent times the Client has launched into European markets serviced from 3P Logistics in the UK.
“GAP” Analysis
Having grown the business to a certain size, the increased activities bred a number of constraints largely centred on a lack of both space and insufficient time to devote to the physical handling activities. In addition further IT development, buying power and supply chain expertise were seen as additional motivators for change.
The client sought a dedicated third party logistics provider that would offer sufficient warehousing capacity and significantly reduce the amount of time they were devoting to managing the supply chain. This would enable more focus towards design, manufacture and infrastructure. In addition, the client required a provider who could consistently deliver a service level in excess of 98% of all orders on time and in full.
The additional support would also provide a catalyst for continuous improvement in various areas including I.T. SOP`s etc.
The Task
To combine all strands of a previously fragmented supply chain system under one roof, enabling efficiency and savings without compromising on quality.
To allow the owners the time and space to concentrate their energies on their undoubted talent in designing innovative new products and exploring new markets.
In outsourcing to 3P Logistics the client was able to quickly enjoy immediate tangible benefits:
Centralised stockholding
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Robust inventory control
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Bonded warehousing – VAT & Duty deferment as required
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Shorter lead times: point of manufacture to availability + point of order to end user
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Enhanced service provision – “On time in full”
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A “leaner” supply chain – Reduction in cost
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Increased sales linked to customer satisfaction
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Ability to devote valuable time and resources to take their business onto new levels
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Buying power
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Continuous improvement i.e. IT development
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Dedicated point of contact
Closing the Gap
Following on from appointment, 3P Logistics set to work on compiling an Integration Plan in the form of a timeline for each part of the account integration, including:
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IT integration – harmonising 3PL’s WMS to interface with Amazon & e-Bay via channel advisor®, Catwalk ’s nominated e-commerce and marketplace management software.
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A staged & seamless transfer of stock from the two existing locations into 3PL completed over a weekend to ensure minimum disruption to service.
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Acquisition and transfer of consumables for immediate use on first day of Go Live.
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Completion of packaging matrix to ensure compliance with specific customer instructions.
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Written SOP’s and Work Instructions and agreed KPI’s put into place covering all areas of service, including bar code scanning protocols and timed collection arrangements with carriers to come into effect on first day of Go Live.
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Training of staff.
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Agreed procedures for handling returns/Quality Checks put into place.
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Agreed reporting protocols established to come into place on first day of Go Live.
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3P Logistics have an enviable reputation when integrating new accounts and this particular customer successfully went live exactly as planned. Business has since increased steadily, and we list below a typical selection of customer reviews from online sales:
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Obtaining historic sales analysis and future sales data to allow optimum set up of pick face and replenishment routines.
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Setting up of dedicated packing station complete with all necessary tools and materials (including gift wrap etc), and PC workstation linked to WMS and Real Handbag Shop website.
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Setting up of all SKU data on WMS in advance of stock transfer
The Result
The move to 3P Logistics allowed The Real Handbag Shop to enjoy their busiest ever sales period in the history of the Company in the run up to Christmas 2008, with orders on some days double the previous highest volume day.
Real Handbag Shop were also able to make inroads into the German domestic market with deliveries as easy to make to Berlin as to Birmingham from 3PL’s Warrington base. Further expansion plans now include the United States of America.
Summary
The transition to 3P Logistics was at all times “seamless” to the end customer & was project managed throughout by our experienced team of professionals.
” Continuous improvement” remains firmly at the forefront of our ongoing commitment to the client. This objective is monitored via regular joint reviews where ideas are shared and additional objectives identified, with a joint focus on raising standards ever further.
Deciding to outsource can be a daunting task for most businesses albeit choosing the right provider will ensure peace of mind within the supply chain & provide the engine room to facilitate further growth
Comment
"We really do appreciate all the hard work the team at 3PL do and the way in which they have looked after us.
We would like to say a big THANK YOU to the friendly and efficient staff at 3PL. Our customers tell us that their purchases have been expertly packed and arrive in super quick time. When our customers are happy, so are we."
With Kind Regards Mike and Jane Abbatt
Directors: The Real Handbag Shop