Fashion industry: smart warehouse processes for handling mixed cartons and collection changes (Part 1).

The fashion industry works quickly, is globally networked, and is under constant pressure. Trends change rapidly. Sales channels are multiplying. Customers expect immediate availability.

Every item of clothing goes through a complex value chain. It starts with the fabric fiber and ends with the finished outfit. Logistics managers and IT teams have to keep this chain running smoothly. To do so, they need lean processes in intralogistics. This is the only way to remain flexible when collections, demand, and sales channels change.

Three closely related industries:

• Textile industry: It produces yarns, fabrics, and fibers. Weaving, knitting, dyeing, and finishing determine quality and variety. This is where the basis of every garment is created.
• Clothing industry: It transforms materials into wearable products. Design, patterns, sewing, and finishing characterize the result. This includes everyday fashion, workwear, and protective clothing.
• Fashion industry: It thrives on creativity and presentation. Labels, designers, fashion shows, and campaigns turn clothing into statements.

And then there are logistics service providers such as Meyer & Meyer and Fiege. Many labels outsource their entire logistics operations in order to focus on their core business. This means that logistics service providers face the same challenges as the manufacturers themselves.

Our customers in the fashion industry include Breuninger, Hugo Boss, HAKRO, NKD, and the Oberalp Group with Salewa.

Our solution understands fashion

Our WMS is designed to meet the requirements of the fashion industry. However, it is flexible when processes from goods receipt to shipping change. It ensures clear warehouse processes. It speeds up delivery times. And it supports consistent shopping experiences. Collection changes, returns, and exchanges can be mapped cleanly when the processes are implemented correctly.

The daily challenges in fashion logistics:

1. Mixed cartons with different sizes
   Stores rarely order one size. They need a mix. A carton therefore often contains several sizes. Different item numbers in one carton must be recorded, stored, and delivered.
2. Collection changes and fluctuations in demand
   Old stock goes out, new collections come in. Trends on social media can double sales overnight. The warehouse must be flexible.
3. Multichannel, cross-channel, and omnichannel distribution
   Customers shop online, in stores, or via marketplaces. They expect the same shopping experience everywhere. All channels must run synchronously and processes must function in real time. Logistics forms the foundation for this.
4. Returns, exchanges, and complaints
   A large proportion of online orders are returned. Returns are part of everyday life in the fashion business. But handling them is time-consuming: quality checks, repackaging, restocking, and credit notes. Speed is crucial to customer satisfaction and margins.
5. Hanging and flat goods
   Jackets hang and jeans lie flat. But both are stored in the same warehouse. Different goods receipts, storage zones, and picking routes increase complexity. Clear structures and automation create order here.

The solutions:

1. Automated mixed carton handling in goods receiving
2. Efficient processes for large-volume deliveries
3. Real-time inventory management
4. Smart picking process for single-location orders in AutoStore
5. Dynamic inventory adjustment in response to fluctuations in demand
6. Integrated channel management for multichannel, cross-channel, and omnichannel
7. Automated returns handling with quality inspection
8. Separate but interconnected goods receipt processes for hanging and flat goods

1. Challenge: Mixed cartons of different sizes

A box containing 100 shirts in size S is easy to store. Mixed boxes containing several sizes—for example, 50 shirts in size S and 50 in size M—increase the amount of work involved. Such sets are common, as retailers usually order mixed sizes. This structure places special demands on goods receipt.

Solution: automated mixed carton handling in goods receiving

There are two options:

1. Separate and sort
   Those who store their items individually open the box in the goods receiving area. Employees separate the goods according to size. The WMS assigns each size to a stock. It automatically assigns storage locations, which can be chaotic or based on ABC analysis. Repackaging takes place at defined workstations.
2. Store as a set carton
   If the entire carton is sent to B2B customers (retailers) as is, it remains closed. It is stored as a unit, either randomly or with a fixed allocation. The WMS recognizes that the loading unit contains different items (sizes). The software takes this composition into account during picking.

Automated support
EAN or item codes uniquely identify each size. The WMS indicates whether the carton contains uniform or mixed sizes.

A sorting system—such as the one used by Meyer & Meyer—performs the separation automatically. Employees open the box, place the goods in the sorter, and the system sorts them by item and size. The goods are then ready for storage.

2. Challenge: Collection changes, fluctuations in demand, and seasonality

Collections change quickly. Trends emerge overnight. What was a must-have yesterday will be on sale tomorrow. Manufacturers of casual wear are familiar with this pace. No sooner have the first summer items arrived than the fall collection is already ready. Demand skyrockets before events such as Black Week, the change of season, or the Christmas shopping season, and then falls just as quickly. Goods arrive, leave, are relocated, or returned. The warehouse becomes a hub for goods. For logistics, this often means piecework deliveries and mass returns.

Solution 1: Efficient processes for large-volume deliveries

When changing collections, every minute counts. Day-to-day business continues while the new line has to be distributed to stores and online shops. Returns arrive, others are sent back. Our WMS keeps track of everything. It controls all processes precisely and ensures that every delivery arrives at the right place—quickly and transparently. All material flows are interconnected and guide employees safely through every process.

Solution 2: Real-time inventory management

If an item is listed as "available" in the shop, then it is actually in stock. Our WMS monitors all inventories and locations in real time. It continuously compares them with the ERP system. Example: There are 10 items of a particular product in stock. Two are reserved, three are being picked, leaving five available. This accurate inventory tracking prevents stock shortages and strengthens customer confidence.

Solution 3: Smart picking process for single-location orders in AutoStore

During peak periods such as Black Week, individual orders suddenly rise from 10,000 to up to 30,000 per day. To keep the warehouse stable, there is a special picking process for single-position orders in AutoStore. You can find the exact procedure here: How to get the most out of a warehouse with AutoStore.

The process reduces the workload for employees and speeds up shipping. This allows the team to remain efficient, focused, and capable of acting even during busy periods.

Solution 4: Dynamic inventory adjustment in response to fluctuations in demand

Trends change quickly. What is in demand today may be left behind tomorrow. Our WMS responds to this with integrated inventory planning and accurate demand forecasting. The software evaluates historical data, recognizes patterns, and automatically adjusts inventory levels. It categorizes items according to ABC analysis. This keeps the warehouse flexible, triggers replenishment in a timely manner, and continuously optimizes strategies.

Clothing that hardly changes—such as workwear or basic lines—is particularly easy to predict. But even if, for example, the color of the polo shirt changes in the following year, the "Follow-up item" field enables a precise forecast.

ABC items are categories that are created for all items in a product range according to ABC analysis. A items—the so-called "fast movers"—have high sales volumes and access frequencies and are stored in easily accessible locations to save travel time. C items, on the other hand, can be stored further back. The result: shorter walking distances, lower costs, and faster processes.

A customer example shows how the ERP system and our "forecast order" function in the WMS work together.
The ERP system transfers forecasts directly to the WMS. The WMS automatically creates transfer proposals and controls replenishment. If the forecast indicates that an item will soon be needed more frequently, the system automatically initiates the order, for example, 30 pallets from the external warehouse to the main location. Without manual intervention and without any loss of time.

Result: The fashion industry needs warehousing processes that are just as flexible as the trends it produces. Mixed cartons, collection changes, and seasonal fluctuations show how demanding everyday life behind the scenes is. To keep track of everything, you need not only good structures, but also a WMS that thinks, learns, and grows with you.

Outlook: The second part deals with multichannel to omnichannel distribution, returns processes, and the special requirements of hanging and flat goods.