Volatility and fragility are among the factors with the most impact on supply chains today, as external conditions change more quickly than ever before. Unpredicted events like the Covid-19 pandemic have had long-term effects on global trade. Consumer expectations for service and fast delivery, on the other hand, are rising steadily.
Mytheresa, the retail platform specialized in luxury fashion and lifestyle products, has grown continuously in the past years. To maintain the highest standards of quality and achieve an optimal customer experience globally, together with 4flow, the business developed a second logistics center close to the DHL hub at the Leipzig/Halle Airport in Germany. The new site will support growth, handle changes in product assortment and fulfill customers’ high expectations.
Author
Nicola Berz
Marketing Manager
4flow
An optimized supply chain to achieve growth objectives
“Our goal is to offer an unparalleled digital shopping experience”, says Kevin Ehrmann, Director Operations Excellence at Mytheresa. The business serves a clientele with very high standards – the average order has a value in the upper three-digits.
“Our customers expect to see the latest luxury trends in the shop quickly and to have them delivered fast. At the same time, they expect the highest quality when it comes to the packaging and condition of each article. Customer service also demands quality and speed, as a quick response to questions and requests improves the customer’s digital experience.”
The business’s impressive growth in the last years has come significantly from the United States and Asia – so the new logistics center must meet the demands of global retail. As early as 18 months before the go-live of the new site, Mytheresa had conversations with DHL EXPRESS about the future delivery processes. The goal was to send packages directly into the air cargo hub to achieve shorter lead times around the world. An order received by 10 pm in Germany, for example, can be delivered in New York the next day.
Flexibility and speed as requirements
The brands Mytheresa carries belong to the luxury goods industry, as well, and have high standards for their retail partners when it comes to quality and image. For this reason and to maintain exceptional customer focus, Mytheresa implemented a no-tolerance policy for errors in the goods receiving and shipping areas. This meant establishing processes that go beyond the norm for e-commerce businesses.
Because of the required flexibility, a complete automation of intralogistics processes was not an option. All items from Mytheresa are carefully packed, wrapped in tissue paper and accompanied by a personalized note. “Packing each order is very time intensive. It cannot be automated, and it requires trained employees”, Ehrmann explains.
To ensure fast order processing, all available packing stations can be accessed easily and quickly. To do this, multi-item orders are separated from single-item orders, so the latter can bypass the order consolidation process.
To integrate future technologies or implement a partial automation solution later, walkways in the logistics center were built wide enough to accommodate cobots. These collaborative robots are designed to work together with humans in a shared space. An efficient connection of the conveyor technology is ensured for all areas of the site and will provide an efficient flow of goods.
“In 2020, we and 4flow thought about how we could develop our network. We wanted an evolution, not a revolution”, explained Ehrmann. “With the additional logistics center already prepared for the implementation of even more future-ready technologies, we’ve taken the first step in this evolution.”
Mytheresa is one of the leading global luxury e-commerce platforms shipping to over 130 countries. Founded as a boutique in 1987, Mytheresa launched online in 2006 and offers ready-to-wear, shoes, bags and accessories for womenswear, menswear and kidswear. In 2022, Mytheresa expanded its luxury offering to home décor and lifestyle products with the launch of the category “Life”. The highly curated edit of over 200 brands focuses on true luxury brands such as Bottega Veneta, Burberry, Dolce&Gabbana, Gucci, Loewe, Loro Piana, Moncler, Prada, Saint Laurent, Valentino, and many more. Mytheresa’s unique digital experience is based on a sharp focus on high-end luxury shoppers, exclusive product and content offerings, leading technology and analytical platforms as well as high quality service operations. The NYSE listed company reported €747.3 million GMV in fiscal year 2022 (+21.3% vs. FY21).