D2C Transformation Of An Athleisure Brand
How does PCH help an athleisure brand overcome supply chain challenges and transform the company into a robust online business
The Company
Gym+Coffee is Ireland’s largest and most recognizable athleisure brand. Founded in 2017, Gym+Coffee is on a mission to bring high-quality clothing to Ireland, the UK, and the rest of the globe.
The Challenge
Gym+Coffee had been selling their products through online and retail. When the pandemic hit, the cost of air freight increased 10X and there was significant hold up in sea freight, causing major delay in delivering manufactured products from suppliers to customers.
At the same time, online demand had climbed during the pandemic. To mitigate inventory risk, Gym+Coffee decided to shift its fulfillment from traditional B2B model, which used 3rd party fulfillment center, to Direct-To-Consumer (D2C) model, which was designed to improve efficiency and lower inventory risk in fluctuated demand.
PCH Solutions
Increase shipping capacity at a competitive rate
PCH secured sufficient shipping space from its global carrier network at a very competitive rate for Gym+Coffee. PCH’s Logistic Solutions helped Gym+Coffee moves all its backlogged merchandise and replenish its inventory within one week.
Direct-To-Consumer (D2C) Supply Chain
PCH helped Gym+Coffee transforms its business to be more e-Commerce focused. Gym+Coffee needed a new supply chain model that balances delivery speed and inventory management.
PCH centralized Gym+Coffee’s merchandise in its fulfillment facility located at the Free Trade Zone in China. PCH also developed an automated workflow that integrated with the Gym+Coffee website and An Post, the Ireland Postal Service. This workflow allows Gym+Coffee to pass online orders directly to the PCH fulfillment center, and enables PCH to print shipping labels recognized by An Post for the last mile delivery.
The Results
PCH’s Logistic Solutions helped Gym+Coffee moves all its backlogged merchandise and replenish its inventory within a week. It also saved Gym+Coffee over 70% in shipping costs comparing to their other alternatives.
PCH’s D2C supply chain model enabled Gym+Coffee to handle 3X+ more order volume per week. It also shortened the worldwide delivery time to 3-5 days, over 60% improvement.
Gym+Coffee projected a 2X increase in Sales in 2021.