Deichmann

One-solution partnership helps Deichmann to fulfil their customer service objectives

Deichmann is an international footwear retailer for whom the combination of physical and online stores is a key focus area. Supply chain management is an important factor in its business success and its customer service promise.

Challenge

Consumers are becoming more demanding: they want 24/7 availability that an online shop can offer, and after purchase, they want their shoes delivered fast. Standard delivery time for Deichmann is 2 days, and online and physical shops go hand-in-hand. E.g. while visiting the online store, customers can “click and reserve” a pair of shoes in a nearby shop.

 

Solution

FREJA collects merchandise from Deichmann’s distribution centre in Soltau, Germany and transports them to special distribution hubs in Stilling, Denmark and Stockholm, Sweden. From its two Nordic hubs, FREJA delivers to all Deichmann shops in Sweden and Denmark through FREJA’s own distribution network - typically 20-100 cartons per shop, 10 pairs of shoes in each carton. The cartons are transported and delivered in cages on wheels, which makes it easy for the Deichmann shops to store or move the merchandise immediately upon delivery. Fixed-schedule deliveries are planned one year in advance, so every shop knows exactly when the trucks will come.

The hubs in Stilling and Stockholm also function as warehousing depots designed to handle returns and internal transfers between Deichmann shops. E.g. if a customer orders a pair of shoes that is not available in a particular shop, FREJA coordinates the transfer from another shop. FREJA also manages some of the returns.

At its specially designed warehouses, FREJA receives all orders placed by consumers through Deichmann’s online shops in Denmark and Sweden. Shoes are then picked and packed individually, several times a day if necessary, and made ready for delivery. 

Results

The multi-channel strategy supported by an integrated full-service logistics setup is driving Deichmann’s footwear sales in the Nordics. Key advantages of integrating distribution, warehousing and e-commerce is that no matter which channel the customer chooses as the method of purchase, it is sourced at one place - there is no need to move goods from one warehouse to another, which means reducing one logistics step.

FREJA’s goal has been to establish a partnership that allows Deichmann to focus on its core business. 

"The one-solution partnership with FREJA helps us to fulfil our customer service objectives. Delivery is a key parameter, and we put a lot of thought into delivery optimisation. The solution in the Nordic region has been developed in close cooperation with FREJA and they have shown they are willing to work with us in striving for continuous improvement."

Mikkel Linck, Director Finance, IT & Admin, Deichmann Denmark

 

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