DHL SUPPLY CHAIN PROVIDES DIGITAL SOLUTION TO BAYCREW’S GROUP TO SUPPORT ITS OMNI-CHANNEL RETAIL STRATEGY

DHL Supply Chain is tasked to implement digital solutions to enhance and increase overall supply chain efficiency and visibility to meet Baycrew’s omni-channel retail goals

Baycrew’s Group, a prominent retail and e-commerce company in Japan has entrusted DHL Supply Chain to enhance inventory management and processes in its Kashiwa-shonan Logistics Center (KSLC) in Chiba in order to support its retail and e-commerce growth.

“With the Japanese e-commerce market expected to reach USD 325.9 billion by end 2026 and set to be the fourth-largest globally, we need to up our game for retail and e-commerce, and actively apply innovative solutions so that Baycrew’s can more effectively execute on its advanced omnichannel retail business model,” said Alfred Goh, President & Representative Director, CEO Japan and Korea, DHL Supply Chain.

To cater to its omni-channel retail growth strategy, DHL consolidated Baycrew’s retail supply chain operations across four warehouses into the 30,000-sqm KSLC in 2016, where all its retail inventory is currently housed. The global contract logistics solutions leader has been successfully running a warehouse management system (WMS) at the site that manages inventories supplied to Baycrew’s retail stores and e-commerce platforms. The improvement in efficiency translated into a doubling of inbound and outbound capacity, which consequently allowed Baycrew’s to better address customers’ needs with accurate shipments and faster shipping times. To improve overall efficiency, DHL Supply Chain has also introduced radio-frequency technology to track and transmit real-time data for every inbound and outbound product, reducing human errors and enabling accurate inventory management.

Goh added, “RFID is by no means a new technology but has only recently been implemented at scale in Japan’s logistics industry due to some initial execution challenges. The integration of RFID to organize and manage large volumes of products is an advantage to any supply chain operations,and this is a step in the right direction for Baycrew’s. We are excited at the prospect of continually working with Baycrew’s to explore more innovative measures in the near future.”

In the coming years, DHL Supply Chain will support Baycrew’s long-term digitalization strategy including in the areas of data analytics, internet of things, and robotics and automation to bring about greater inventory management efficiency.

Dobashi, Director, Logistics Division, Baycrew’s Group said, “With the warehouse consolidation and introduction of efficiency-enhancing tools and processes, we have strengthened our partnership with DHL and implemented operational transformation despite various challenges. During the past four years, we have seen a spike in warehouse capacity and online sales. On the fulfillment side, we have seen shipping volume increase approximately six times compared to before integration – one of our Key Performance Indicators (KPIs), in addition to overall service level visibility. As the social environment changes rapidly, we believe that only companies with retail and e-commerce capabilities integrated with logistics can survive. Baycrew’s has a competitive advantage in both retail and e-commerce, which is enabled and maintained by our logistics function and foundation superior to our competitors. As a leading player in the fashion industry, we will continue creating and delivering value to our customers.”

Kashiwa–shonan Logistics Center has become Baycrew’s critical base for the fulfillment of all retail and e-commerce order in the country, and the company is looking to grow its fulfillment capacity in the coming year.