Chain Reaction: Courtney Folk of Renewal Logistics on the Downsides of DIY Fulfillment

Chain Reaction is Sourcing Journal’s discussion series with industry executives to get their take on today’s logistics challenges and learn about ways their company is working to keep the flow of goods moving. Here, Courtney Folk, founder of Renewal Logistics, discusses how the logistics company’s warehousing and fulfillment services for fashion brands help them sell more, prevent chargebacks and de-risk their businesses.

IAF President Cem Altan Speaks to Structural Issues Within Fashion Supply Chain

Name: Courtney Folk
Title: Founder
Company: Renewal Logistics

What industries do you primarily serve?

We support the fashion industry, including apparel, footwear, beauty and consumer packaged goods (CPG) brands. Our expertise in compliance requirements for major retail and online marketplaces helps brands avoid chargebacks. This enables them to confidently pursue new trading partner opportunities and become fully omnichannel.

What is the main thing brands and retailers could do (or stop doing) right now that would immediately improve logistics?

Many brands choose to DIY and self-fulfill because they feel they must be involved in every element of their business. This is similar to hiring someone to clean your house: Just because you can do it doesn’t mean it’s the best use of your time.

Could you share more specifics on why someone should hire a company to manage logistics/fulfillment when they do it themself?

It’s generally acknowledged that brands achieve better outcomes by outsourcing fulfillment, as it allows them to focus on sales and customer connections. This approach reduces business risks by avoiding expensive long-term leases and the need for a large full-time workforce.

Unfortunately, many fashion brands handle fulfillment in-house because they can’t find outsourced options that adequately accommodate the complexities and uniqueness of their product lines.

Most third-party fulfillment providers are reluctant to handle the high stock-keeping unit (SKU) counts typical in the fashion industry due to several challenges. These include the need for more storage space, a complex picking process, time-consuming and varied quality inspections, tight seasonal deadlines and a difficult chargeback process with retailers. As a result, accessible outsourced options for fashion brands have been limited.

Recognizing this issue, we have leveraged our experience with some of the largest apparel brands in the world to provide an out-of-the-box solution for fashion brands of all sizes. This enables them to enjoy the benefits and strategic value of outsourcing the logistics arm of their business.

When it comes to supply chain logistics challenges, there are things companies can fix and things that are beyond their control. How can the former help the latter?

Understanding how brands impact their trading partners through product-related decisions is crucial for a successful distribution strategy. It’s called the supply chain because decisions have chain reactions, and learning this through trial and error is challenging.

Report: 90% of Global Companies Miss Mark on Human Rights, Ethical Conduct

For example, minor issues like incorrectly affixing case labels can prevent a retailer’s automated systems from shipping products to the correct stores. Such seemingly insignificant errors cause delays in product availability, incur chargeback fees and damage the brand’s reputation with the retailer, especially with repeated mistakes.

As a fulfillment partner for the fashion industry, we have spent decades mastering these requirements and taking on this responsibility for our customers. This allows brands to avoid getting involved in technical minutiae, helping to eliminate potential challenges and errors.

Additionally, having a process improvement strategy is key. When a mistake occurs, it’s critical to implement measures to ensure the issue doesn’t happen again.

What area of logistics isn’t receiving the industry attention it deserves?

The logistics industry often shortchanges apparel and fashion because they are more challenging to service compared to other verticals. Apparel and footwear have the highest SKU counts, highest return rates and the most complex needs for value-added services. Footwear and leather goods, for example, require special care due to mold remediation needs.

This is our center of expertise and excellence. We embrace the challenges of this industry not despite their difficulty, but because we are committed to solving real-world problems.

What is your company doing to make the movement of goods more sustainable?

With over 20 years of experience in apparel care, we have kept over 35 million units of apparel out of landfills. Brands of all sizes can leverage this expertise to streamline their returns management processes.

Are you optimistic about the state of supply chains in the next few years?

Yes, I am. The biggest challenges are the movement away from China, the associated quality control process and the migration of blue-collar workers to the Southeast.

If brands struggle to meet demand during peak seasons due to a limited number of available workers for picking, packing and shipping orders because their distribution centers are not in the Southeast, we can help.

Salesforce: Platforms Like Shein and Temu Could Grab 21 Percent of Holiday Spending