We - KappAhl

VALUE CHAIN
24
STEP 4: DISTRIBUTION
60,000,000 GARMENTS TO
THE RIGHT DESTINATIONS
Having the right garment in the right quantity in the right place at the right time is not
only good. It’s a must. In today’s tough competition and high fashion tempo the goods
cannot come either too early or too late, otherwise we risk losing sales and being forced
to reduce prices.
So we have made major investments in streamlining the supply chain, which means
our distribution is among the best in the business, in terms of effectiveness. This has
attracted attention from outside. For example we receive invitations to talk about our
distribution solution at trade fairs and schools. Visitors also come here to learn from us.
TOP CLASS FACILITY Our distribution centre is located close to the head office in
Mölndal, outside Gothenburg. It is the most modern in Northern Europe and more or
less completely automated. Each year almost 60 million garments pass through the facility.
But with minor supplementary investments capacity can be increased to more than 100
million garments. The work of directing goods on all markets goes on here round the
clock. The distribution system is constantly being refined with regard to quantities, timing,
sizes and colours, as well as adaptations for the climate in the regions where the stores
are located. This contributes to increased sales and reduces the proportion of goods sold
at reduced prices – which is, of course, good for profitability.
FREQUENT STORE DELIVERIES Most goods go directly to the stores. Deliveries are
labelled with bar codes in accordance with electronic packing lists already at the place of
manufacture. Storage space in our stores is limited, since store areas must primarily be
used for selling. This means that timing of distribution is important. Our stores receive
deliveries three to four times a week or more often if sales require. Most transportation
from the country of manufacture is by boat for cost and environmental reasons. Air transport
is used in exceptional cases, if necessary for commercial reasons.
Kappahl 2008/2009