Last year, at the beginning of autumn at the height of my research into Supply Chain and Warehouse Management solutions, my attention was drawn to the Amsterdam-based lifestyle fashion brand Scotch & Soda.
Some announcements in the online press prompted a deep-dive into the world and history of Scotch & Soda.
The deep dive revealed an interesting and compelling journey of a Dutch wholesaler, that grew into a leading international player in the fashion and clothing sector.
See the link to part one under references.
The steps towards a composable digital business landscape
Scotch & Soda does not choose to replace its outdated ERP solution with D365 Finance and Supply Chain Management.
The platforms and solutions of NEW BLACK and Manhattan Associates are introduced while the value chain runs on the newest RFID-tags of Checkpoint Systems and the Nedap iD Cloud platform.
🌄 Nedap becomes strategic RFID partner | February 2021
Scotch & Soda selected Nedap as strategic RFID partner for Europe and North America.
Scotch & Soda will deploy Nedap's iD Cloud inventory management platform throughout 162 stores globally with the objective to increase accuracy throughout the supply chain.
Intented goals:
☛ Maximize customer loyalty
“We have been looking into RFID for quite some time already. Now is the time for us to step in, as product availability has become vital to fulfill the increasing demand of today’s consumers.” — Rik Kok, Procurement Director of Scotch & Soda
☛ Gain real-time insights in and optimize stock levels throughout the supply chain
“A single view on stock is crucial for a successful omnichannel strategy. It allows us to increase our online sellable stock, as we do not necessarily need to ship from our distribution centers anymore. We can now use our stores as mini-DCs and use stock from the shop floor and back-of-house for web order fulfillment as well” — Rik Kok, Procurement Director of Scotch & Soda
☛ Phased deployment
Scotch & Soda kicks off the RFID implementation in the physical stores. This is closest to the consumer, as most sales-transactions take place there. Goods are source-labeled at the factory, leading to full traceability in the supply chain from source to consumer.
Nedap's iD Cloud solution not only ensures that products are available for sale in the store, but also provides the ability to quickly locate web orders in the store via the "App for in-store RFID-processes". In this way, the time required to prepare an e-commerce order is kept to a minimum.
The next step will be taken at Scotch & Soda's new distribution center, where efficiency and accuracy must be optimal.
[See references: "App for in-store RFID processes"]
☛ Contribute to reducing the negative impact of the fashion industry on the environment
As RFID provides real-time insights in stock levels throughout the entire supply chain, safety thresholds can be reduced to a minimum. This enables Scotch & Soda to fulfill consumer demand without overstocking, and eventually wasting garments.
[See references: "Scotch & Soda selects Nedap as strategic RFID partner"]
🌄 The new generation of RFID-tags van Checkpoint Systems | August 2021
In the summer of 2021 Scotch & Soda decided to extend its partnership with Checkpoint Systems. Scotch & Soda has been using the Checkpoint Systems’ labelling technology for more than 10 years.
New Jersey-based company, Checkpoint System, is a global leader in EAS (Electronic Article Surveillance) and RFID (Radio Frequency IDentification) solutions for the retail industry, encompassing loss prevention and merchandise visibility solutions in growing omnichannel environment.
The brand is now advancing in the collaboration by incorporating the latest generation of RFID labels, featuring the high-performance Njord label with the Impinj M750 chip, onto all its merchandise.
“2020 has changed the buying behaviour of consumers worldwide. Shoppers no longer just buy clothes in a physical shop or online. They buy through their preferred channel, as and when it is convenient for them, if retailers want to grow, they will have to accommodate their consumers with this omnichannel behaviour. RFID ensures that shops can perfectly align e-commerce, click & collect and other online services. This improves customer loyalty by ensuring that the experience is enjoyable, from mobile/desktop browsing through to collection or delivery.” — Geert den Hartog, Key Account Director Apparel at Checkpoint Systems
[See references: "Scotch & Soda macht Online- und Offline-Shopping mit Checkpoint Systems zu einem neuen Erlebnis"]
🌄 Omnichannel European Distribution Center | Juni 2022
At the President business parc in Hoofddorp the new European distribution center of fashion company Scotch & Soda was completed in the past summer months.
Scotch & Soda will integrate three distribution centers in Europe into one distribution center from which omnichannel sales will be facilitated.
The distribution center provides space for a state-of-the-art warehouse of approximately 20,000 m2, sixteen loading docks and a three-storey office of 1,200 m2.
The impressive building of more than two football fields stands out because of its black facade panels, gold-colored roof awning and overhead doors, imposing glass sections and green columns that cover part of the facade.
The all-electric building has been designed and built in such a way that the highest sustainability ambitions are met. The requirements of the WELL Gold certification go very far, up to the height of the taps and the width of the sinks. Everything to ensure that the people in the building experience a pleasant environment.
“The hall is heated with two air-water heat pumps that supply the heaters with warm air. In the office area, the climate system cools and heats by means of a VRF system.” — Peter Moddejongen, project leader at Top Installatiegroep
Underneath the new building is a parking basement for almost a hundred cars, including a large bicycle shed.
“This building is all about the well-being of the people who work there. A good working climate with good air is therefore important. On the roof, for example, measurements are carried out with a sensor. If the air quality turns out not to be good, lights will come on inside and the employees will have to close the windows. After all, the company is located near Schiphol and that has consequences for air quality.”
[See references: "Opening Omnichannel Europees Distributiecentrum (June 2022)"]
[See references: "It was the installer's first time working for a WELL project"]
🌄 Manhattan Active® Allocations and Warehouse Management | 2022
The Dutch fashion brand Scotch & Soda implements Manhattan Active® Allocation and Manhattan Active Warehouse Management.
The choice for these solutions did not just fall out of the blue. It is part of a strategy to drive omnichannel transformation, both in-store and online, globally. In this way, the new omnichannel distribution center in Hoofddorp and the DC in Hong Kong can be used optimally.
The real-time approach to allocation makes for fewer redirects and end-of-season markdowns, less stranded inventory and less financial risk.
“By migrating three key distribution centers to Manhattan Active Warehouse Management, we are supporting a distribution and fulfillment transformation with smarter, more transparent and sustainable fulfillment and delivery options, which will ultimately benefit our growing customer base.” — Rik Kok, procurement director at Scotch & Soda
“Manhattan has reimagined the entire allocation process with the notion that today’s retailers must better align inventory deployment decisions with how the brand intends to engage its customers. For the first time, allocators will have the ability to make allocation decisions pre-season, before inventory hits the stores, and in real time during the selling season, leveraging granular omni-fulfilment insights. This will give them the ability to align their short-lifecycle inventory plans with their omnichannel fulfilment strategies, resulting in fewer fulfilment redirects and end-of-season markdowns.” — Scott Fenwick, senior director of product strategy at Manhattan Associates
Manhattan Active® Allocation is always up-to-date, constantly adapting, and automatically scales and bends to meet changing needs as a business grows.
The microservices-based, cloud-native solution never needs to be upgraded,
Manhattan Active® Warehouse Management is versionless, with continuous access to new capabilities. The system works in the cloud and is equipped with machine learning, which means that updates are not necessary. When Scotch & Soda needs more functionality, the solution will automatically scale with the need.
VCE Verkehrslogistik Consulting & Engineering GmbH
The German IT Consultancy company VCE Verkehrslogistik Consulting & Engineering GmbH took care of the implementation from start to finish in a number of phases:
[See references: "One Warehouse IT Consulting at Scotch & Soda"]
References
✅ What makes Emma, the Sleep Company, and Scotch & Soda so interesting? (Part one)
✅ App for in-store RFID processes
✅ Scotch & Soda selects Nedap as strategic RFID partner
✅ Scotch & Soda macht Online- und Offline-Shopping mit Checkpoint Systems zu einem neuen Erlebnis
✅ Opening Omnichannel Europees Distributiecentrum (June 2022)
✅ It was the installer's first time working for a WELL project
✅ Scotch & Soda drives global omnichannel supply chain transformation with Manhattan Associates