One of Scotch & Soda’s long-term objectives is to maximise customer loyalty

One of Scotch & Soda’s long-term objectives is to maximise customer loyalty

Dutch fashion brand Scotch & Soda is tapping into radio-frequency identification (RFID) to give real-time insights on stock levels throughout its entire supply chain.

The company has selected Nedap as its strategic RFID partner for Europe and North America, and will deploy its !D Cloud inventory management platform throughout 162 stores globally.  

The challenge of item visibility has taken on added importance due to Covid-19.

With 162 stores worldwide, 71 franchises, 414 branded shop-in-shops, and shipping to over 70 countries, the dynamics of countries going in and out of lockdowns made it even more important for Scotch & Soda to optimise the view on stock levels within its supply chain. This way, the balance of stock in-store and distribution centres can be adjusted to the local situation. 

The brand also faced a dramatic shift in shopper behaviour caused by the pandemic. "A single view on stock is crucial for a successful omnichannel strategy. It allows us to increase our online sellable stock, as we do not necessarily need to ship from our distribution centres anymore. We can now use our stores as mini-DCs and use stock from the shop floor and back-of-house for web order fulfilment as well", says procurement director Rik Kok.

Scotch & Soda is kicking off the RFID implementation in the physical stores, where most sales take place. Goods are source-labelled at the factory, leading to full traceability in the supply chain from source to consumer.  

In addition to ensuring product availability for store sales, Nedap's !D Cloud solution also provides the ability to quickly locate web orders in the store. This way, the time spent preparing an e-commerce order will be reduced to a minimum.  

The next step will be taken at Scotch & Soda's new distribution centre, where efficiency and accuracy must be optimal. 

As RFID provides real-time insights in stock levels throughout the entire supply chain, safety thresholds can be reduced to a minimum. This means Scotch & Soda can fulfil consumer demand without overstocking and eventually wasting garments.