Fashion & Apparel

Fashion warehouses handle both hanging garments (garment-on-hanger or GOH) and folded items, requiring different storage and handling systems. SKU counts typically range from 20,000 to 100,000+ items, with extreme velocity variation—bestsellers may turn 50+ times annually while slow movers sit for months. Size curves add complexity, with certain sizes (M, L) moving much faster than others (XS, XXL).

Return rates are significantly higher than other e-commerce sectors, often reaching 30-40% for online orders. Returns must be quickly inspected, processed, and returned to available inventory or marked for liquidation. This reverse logistics capability is critical for profitability. Seasonal transitions require rapid inventory changes, with old season merchandise cleared out and new collections deployed within tight windows.

High return rates create significant operational burden and cost. Each return must be inspected for condition, repackaged if necessary, and returned to inventory—or diverted to outlet channels or liquidation. Processing returns efficiently while maintaining quality standards is critical. The inspection process is largely manual, making it labor-intensive.

SKU proliferation makes inventory management extremely complex. With 50+ variations per style, maintaining optimal stock levels across all sizes and colors is challenging. Stockouts in popular sizes lose sales, while excess inventory in slow sizes ties up capital. Size curve optimization requires sophisticated analytics and frequent adjustments.

Seasonal volatility creates capacity planning challenges. Facilities must handle 2-3x normal volumes during peak seasons (back-to-school, holidays) and seasonal transitions. Labor scaling is difficult given the specialized knowledge required for fashion handling. Space utilization varies dramatically—peak season requires maximum capacity while off-season leaves facilities underutilized.

Storage Solutions: Garment-on-hanger (GOH) systems with overhead conveyors or vertical carousels preserve garment quality and reduce handling. Automated storage for folded items uses shuttle systems or goods-to-person solutions. Dynamic slotting by size and velocity optimizes pick density. Reserve storage holds seasonal inventory awaiting deployment.

Transport Systems: Overhead conveyor systems transport hanging garments throughout the facility. AMRs handle totes and boxes of folded items. Sorters route items to different processing areas based on order type, destination, or return status. Vertical conveyors enable multi-floor operations separating GOH and folded item processing.

Picking Technologies: Goods-to-person systems achieve high pick rates for folded items. GOH picking from overhead systems maintains garment quality. Put walls enable batch picking across multiple orders. Automated bagging or poly-bagging systems prepare items for shipment. Pick-to-light or voice systems guide pickers through complex size/color matrices.

Software Systems: Advanced WMS with fashion-specific features: size curve management, seasonal planning, style/color/size matrix handling. Returns management systems automate inspection workflows and disposition decisions. Allocation engines optimize inventory distribution across channels and locations. Integration with PLM (Product Lifecycle Management) systems for new product introductions.

Flexibility to handle both GOH and folded items is essential—many operations process both formats. Scalability must accommodate seasonal peaks without excessive capital investment in capacity used only part of the year. Consider modular systems that can be expanded incrementally. Returns processing capability should be evaluated carefully—this is often an afterthought but critical for fashion profitability.

Quality preservation is important—automation must not damage garments or packaging. This is particularly critical for luxury brands where presentation matters. Integration with fashion-specific systems (PLM, allocation, markdown optimization) is more complex than general e-commerce. ROI calculations should include benefits from improved inventory turnover and reduced markdowns, not just labor savings.

Start with high-velocity items and proven technologies before tackling complex GOH systems. Many operations begin with folded item automation and add GOH capabilities later. Returns processing should be addressed early—it's tempting to focus on outbound efficiency, but returns volume in fashion makes this a critical capability.

Seasonal timing is crucial—avoid implementations during peak seasons or seasonal transitions. Plan for 9-12 months from project start to operation. Build flexibility for future changes—fashion trends and business models evolve rapidly. Consider separate processing for different price points or brands if quality requirements vary significantly.

Workforce training is more extensive than general e-commerce due to product knowledge requirements and quality standards. Plan for longer ramp-up periods. Test thoroughly with actual product before going live—fashion items often behave differently than test materials used during installation.