Nelly.com Case Study

“On a scale of 1 to 10, our experience of working with Socius24 is a definite 10.”

John Enevoldson, Senior Logistics Developer, Nelly.com

About Nelly.com

Launched in 2003, Nelly.com is Scandinavia’s leading e-commerce company in fashion and beauty for young adults. They provide a wide range of products from hundreds of internationally well-known fashion houses as well as their own NlybyNelly brand.

Nelly.com continues to embrace new technologies to ensure it meets the fast-paced demands of the online fashion world. This allows the company to grow whilst continuing to exceed the high expectations of fast fashion shoppers.

Background

Nelly.com has continually expanded its product range for both women and men. In 2011 they launched their own NLY clothing range that now consists of 10 brands and accounts for almost 50% of their sales.

In 2015, they selected the Blue Yonder Dispatcher Warehouse Management System (WMS) to manage operations at their Falkenberg, Sweden warehouse and have recently upgraded to the 2019 version. This has allowed the operation to accurately process around 3 million orders per year and manage inventory of over 1.4 million items.

In order to keep up with the ever-increasing demands of the consumer, reduce costs and shorten delivery times Nelly.com have recently moved to a new 35,000 m2, purpose-built warehouse in Borås, Sweden.

Challenges

To be highly competitive in such a challenging market, Nelly.com recognised that they needed to drive efficiencies in their logistics operation. At the time, the existing operations were heavily manual and they had outgrown their current warehouse facility.

Nelly.com saw automation as key in order to reduce costs and shorten delivery times, and as part of moving their operation to Borås, decided to implement Autostore to automate picking and an automatic sortation system from InterSystem to sort the picked parcels.

Integrating these two systems into Blue Yonder Dispatcher WMS was essential to ensure that the full benefits of automation were gained while stock integrity, order management and other operations remained accurate. At the time, no current standard interfaces existed between these systems, so Nelly.com turned to Socius24 to help make this happen.

Solutions Delivered

Nelly.com selected Socius24 to provide consultancy, development and support for the warehouse move and automation integration. Socius24 was chosen over alternative providers due to their unprecedented product knowledge and experience and how they demonstrated a commitment to fully understand Nelly.com’s operation and to work as a highly valued supplier.

Outcome

Through their partnership with Socius24, Nelly.com are able to maximise their investment in the Blue Yonder Dispatcher WMS and to embrace leading technologies and automation to drive both operational efficiencies across their operation and to deliver their customers a fast and effective service.

SMOOTH TRANSITION TO NEW FACILITY – Having done this many times before, Socius24’s advice, planning and meticulous attention to detail enabled Nelly.com to transition from their warehouse in Falkenberg to Borås seamlessly. By enabling a period of parallel running, the move was completed without disruption to customers.

EFFICIENCY AT SCALE – The level of seamless integration that Socius24 has provided to both the Autostore picking system and the InterSystem sortation solution is already making a difference. Nelly.com are processing around 10,000 orders per day with on average 2.7 line items per order. It is expected that 80% of picking will be automated which is a 40% saving over manual picking and a 30% overall reduction in fulfilment cost per item.

BEST POSSIBLE SERVICE TO CUSTOMERS – For this sector quick delivery is key, so too is providing the customer with choice on flexible delivery options. Through the use of automation Nelly. com is able to provide their customers with a wide range of options and ensure that speed of delivery is achieved.

Blue Yonder Dispatcher Warehouse Management System

Blue Yonder is one of the most recognisable and implemented solutions in the world.

Socius24’s expertise comes from our involvement in the design and development of the original RedPrairie Dispatcher solution, which enables us to fast-track deployment and ensure that our clients use its capabilities to the full. This reduces the cost and risk of deployment, leveraging a broad set of pre-built templates and plug-ins, allowing our customers to quickly gain the functionality they require.