Fashion industry: confident intralogistics – from omnichannel to smart returns processing (Part 2).

The second part shows how cross-channel processes work, how companies manage returns, and what requirements hanging and flat goods pose. A powerful warehouse management system (Element Logic Software Suite) determines efficiency and speed here.

3. Challenge: Multichannel, cross-channel, and omnichannel distribution

Shopping used to be straightforward. Customers went to the store, chose a product, and paid. Today, they constantly switch between channels. They scroll through apps and social media, click through online stores, and later visit the physical store. They expect a smooth process, regardless of the channel.

First, we will classify the terms and explain what they mean.

Multichannel: Companies sell through several separate sales channels. However, it is not possible to exchange items in-store if the purchase was made online. This is because the channels operate independently of each other.

Cross-channel: The channels are linked. Customers order online and can pick up the goods in the store. The reverse also works. The shopping experience remains linked across all channels.

Omnichannel: All channels merge into one seamless experience. Customers buy via app, track shipping online, contact support via social media, and return goods in store. The process remains consistent throughout.

Multi-channel sales are now standard practice. However, they increase logistical complexity. Each additional channel generates orders, data, and interfaces. Systems run continuously in sync. Employees need clear processes to work efficiently.

Solution: Integrated channel management (multichannel, cross-channel, and omnichannel)

Our WMS combines all sales channels in one system. It centrally records orders from the online shop, marketplace, and app. The software precisely controls deliveries and "click & collect" processes. These automated processes reduce the workload for the warehouse team. Employees are given clear tasks and customers receive their goods reliably.

Special feature: AutoStore in omnichannel operation

An AutoStore with 20 ports enables flexible picking:

• 15 ports for the online shop: Orders leave the warehouse within 24 hours.
• 3 ports for major customers: The software bundles orders and organizes them according to schedule.
• 5 ports for branches: Brick-and-mortar stores receive goods just in time.
• 2 ports for express orders: The goods are shipped on the same day.

The result: fewer errors, short turnaround times, and consistent processes across all channels.

How does a fashion warehouse with AutoStore work? Our customers report on this in the case studies.

4. Challenge: Returns, exchanges, and complaints

The fashion industry has high return rates. Returns arrive every day. The reasons for this are incorrect sizes, wrong purchases, or selection orders. Without structured processes, the effort involved quickly increases. Companies lose time and overview. Customers expect fast and easy returns processing. Employees need clear procedures to efficiently check, record, and restock returns.

Solution: Automated returns handling with quality inspection

Our WMS controls the entire returns process. It ensures transparency and speed. Employees work step by step in the system. They check the goods directly upon receipt. This means that every item is quickly returned to the warehouse or put back on sale. The software offers numerous functions and can be adapted to industry-specific requirements. Every step of the process remains traceable. The software documents the path of the goods from receipt to replacement delivery.

Returns processing at a glance

A clear process saves time and reduces errors. How it works in practice:
1. Identify: The WMS recognizes the return in the goods receiving area based on the item and delivery position.
2. Record: The item is digitally recorded and assigned to the order.
3. Check (decision on use): Employees assess the condition and usability.

• Option 1: The return is evaluated immediately:
  - Scrap → dispose of
  - B-grade goods / second choice → store or refurbish
  - Repair or cleaning → forward
• Option 2 (complex items): The return goes to the inspection warehouse. The QA team evaluates the goods and determines how to proceed.

4. Stocking & inventory correction: After verification, the system automatically adjusts the inventory.
5. Inform customers & complete process: Replacement, exchange, or repair are handled directly via the ERP system.

This is how a return is created in the system.

The system requires a notification (notification data) for correct processing. This can be created in two ways:

1. Automatically upon completion of shipment: Upon delivery, the system generates one notification per package item. It remains valid for six weeks and can be customized. Returns can be processed directly within this period.
2. Manually as an ad hoc variant: If the customer spontaneously announces a return, the ERP system creates a notification and transfers it to the WMS. The WMS checks whether a preliminary notification already exists and only creates a new notification if necessary.

5. Challenge: Hanging and flat goods

Fashion places different demands on storage. Coats and blazers are stored on hangers as hanging goods. Shirts, jeans, and accessories are folded and stored in boxes as flat goods. Each product group requires its own processes. Incorrect handling leads to creases or damage. This is unacceptable for high-quality items.

Solution: Separate but networked goods receipt processes for hanging and flat goods

A customer regularly receives exclusive winter jackets on hangers. At the same time, folded shirts arrive. Our software automatically recognizes the product group. It guides employees through the appropriate process. The process ranges from goods receipt to removal from storage. Every item remains in perfect condition.

Another useful feature: reducing travel times with algorithms

The "warehouse healing" strategy shortens walking distances during order picking. Algorithms analyze picking frequencies and product affinities. The WMS suggests targeted stock transfers. Many warehouses reduce their walking times by up to 60 percent. The method combines data analysis with AI-supported simulations. Customer example at Technilog.

Conclusion: The fashion industry thrives on speed and movement. Success comes from a keen sense of style and clear processes. Smart warehouse management ensures that collections reach stores on time. It reliably manages returns and keeps inventory transparent.

More on the topic of e-commerce
Fashion companies today operate like e-commerce providers. They need fast processes, reliable data, and flexible structures. These articles show how warehouse logistics works in online retail:

• E-commerce industry: How warehouse management works in the online age (Part 1/2)
• E-commerce sector: Amazon Prime, value-added services and additional testing processes (Part 2/2).
  

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

Additional contribution: Gain the confidence that you have everything under control despite constant change in the fashion industry.