Storage for clothing brands: when to outsource?

In short

Outsourcing storage for clothing brands becomes interesting as soon as counting stock, processing orders, personalisation and returns take more time than sales and collection development. The number of orders is not the only yardstick. Above all, the number of sizes, colours, sales channels and decoration steps determines how complex your operation becomes.

A clothing brand with fifty personalised orders can have more handling steps than a brand with two hundred standard orders. So the right question is not just: how much storage space do I need? Also ask how much control, capacity and error prevention you need to process every order correctly and on time.

Storage for clothing brands in brief

Good clothing storage connects five processes:

• receiving and checking new stock;
• registration per style, colour, size and version;
• synchronisation with your online store or other sales channels;
• order picking, personalisation, packing and shipping;
• assessing and processing returns.

Why one central process helps

When these parts are organised separately, extra handovers and manual checks arise. That increases the risk of stock discrepancies, wrong sizes and delays. A central process makes clear where every item is, which stock is available and which orders still need a decoration step.

Why clothing stock quickly becomes complex

One clothing style is rarely one stock item. Suppose you sell a hoodie in four colours and six sizes. You are then already managing 24 SKUs, even before you distinguish between blank stock, printed variants, embroidery or different labels.

Drops, pre-orders, bundles and marketplaces add extra stock statuses to that. A product can be physically present but reserved for an open order in the meantime. Without central registration, your online store can sell that same item again.

So record at least:

• a unique SKU per sellable variant;
• the physical storage location;
• available, reserved and damaged stock;
• which personalisation or branding belongs to the item;
• whether a return can be resold;
• which sales channels use the same stock.

Consistent product data first

A good online store integration automates stock movements and order data. However, the integration doesn't solve messy product data. So make product names, variants, SKUs and bundles consistent first.

Store it yourself or outsource?

Both options can be suitable. The best choice depends on your order profile, available time and the level of control you want.

• Range. In-house storage often fits better: few styles and variants. Outsourcing often fits better: many sizes, colours, drops or bundles.
• Orders. In-house storage often fits better: limited and fairly predictable. Outsourcing often fits better: growth, peaks or several sales channels.
• Personalisation. In-house storage often fits better: hardly any, or fully produced in advance. Outsourcing often fits better: embroidery, printing or labels per order.
• Team. In-house storage often fits better: time and space for daily processing. Outsourcing often fits better: the team needs to focus on sales and the collection.
• Systems. In-house storage often fits better: manual processing remains manageable. Outsourcing often fits better: stock synchronisation and automation are needed.
• Shipping. In-house storage often fits better: one market and simple shipments. Outsourcing often fits better: several countries, carriers or delivery options.
• Returns. In-house storage often fits better: low volume and simple assessment. Outsourcing often fits better: a structural flow of returns with fixed checks.

When outsourcing makes sense

Outsourcing makes particular sense when stock and shipping work slows down your commercial growth, when errors occur more often or when you would otherwise have to arrange extra space and staff yourself. In-house storage can remain sensible during a manageable test phase in which your processes still change often.

So don't just compare the price per pallet or parcel. Also calculate the time for receiving, counting, picking, packing, customer service, stock corrections and returns.

How the process should run

A manageable fulfilment process consists of six clear steps:

• Goods receipt. Quantities and visible quality are checked. Discrepancies are recorded before stock becomes available.
• Registration and storage. Every variant gets the right SKU, status and fixed location.
• Order transfer. The online store passes on order, customer and product data without manual retyping.
• Order picking and personalisation. The right garment is collected and, where necessary, printed, embroidered or fitted with a hangtag or neck label.
• Quality control and packing. Item, size, decoration and packaging are checked before the parcel is closed.
• Shipping and feedback. Stock is updated and the shipping status goes back to the sales channel.

Exceptions

Discuss exceptions too. What happens with missing stock, a damaged item, an illegible personalisation file or an order that comes in after the cut-off time? A process is only reliable when not just the standard order, but also the deviation is taken care of.

Which figures should you track?

You don't need an extensive dashboard to get a grip. Start with a few measuring points that say something directly about stock and customer experience:

• Stock accuracy: does the system stock match what is physically present?
• Order lead time: how much time is there between receiving the order and handing it over to the carrier?
• Picking and personalisation errors: how many orders contain a wrong size, variant, position or decoration?
• Return to stock: how quickly is an approved returned item available again?
• Stock age: which sizes and colours stay on the shelf for a long time?
• Peak capacity: how much extra volume can be processed during a drop or campaign?

Agreements on reporting

Agree how often you receive these figures and who takes action when there is a deviation. Reporting alone, without an owner or follow-up action, achieves little.

What determines the cost of clothing storage?

A useful quote breaks the operation down into parts. In any case, ask about:

• inbound handling and checking of new stock;
• storage per pallet, bin, shelf location or item;
• order picking per order and per extra order line;
• embroidery, printing or other personalisation;
• packaging materials and branded packaging;
• shipping per country, weight and service;
• receiving returns, assessing them and putting them back into stock;
• integrations, onboarding and periodic stock checks;
• any surcharges for peaks, rush orders or non-standard handling.

Compare on the same order profile

Without your number of SKUs, average order lines, monthly volume, peaks and decoration steps, a price comparison can easily be misleading. So provide the same order profile to every potential partner. Then you are not comparing separate rates, but a complete order flow.

Combining storage with personalisation

For clothing brands, it can be efficient to keep blank textiles in stock and only personalise after the order. You then don't have to produce every combination of size, colour and print in advance. That reduces the risk of unsold variants and makes small drops or tests more flexible.

This on-demand approach does call for clear agreements. Record which files have been approved, where the design is placed, which labels or inserts are needed and how quality is checked. Also check whether the available production capacity matches the delivery time you promise in your online store.

Storage and personalisation at one location can limit handovers. The garment then doesn't first have to go from the warehouse to the producer and then back to fulfilment. That can make the process simpler, but only when stock status, production order and quality control come together in the same system or the same way of working.

Returns are part of your available stock

A return is not automatically sellable again. The item must be checked for signs of wear, odour, stains, missing labels and damaged packaging. Agree in advance which outcomes are possible: back into stock, repair, register as second quality or reject.

Also record when the online store stock is increased. Does that happen when the parcel is received or only after quality control? The second option prevents an item from being sold again before it is clear whether it is actually sellable.

Returns information is also useful for purchasing and product development. When one size, fit or decoration comes back strikingly often, that can point to a problem that needs to be solved earlier in the process.

Checklist for a fulfilment partner

Use these questions during an introductory meeting or quote request:

• How do you register sizes, colours, bundles and personalised variants?
• How are discrepancies at goods receipt reported?
• Which online stores and sales channels can be connected?
• When is stock reserved and updated?
• How do you check size, decoration and shipping label?
• Can storage, embroidery, printing and branding take place in one process?
• How do cut-off times, peak capacity and rush orders work?
• Which returns criteria do you use and when does stock become available again?
• Which reports do we receive on stock, errors and lead time?
• Which costs are fixed, variable or dependent on exceptions?
• Who is the point of contact for deviations?
• What does the switchover or onboarding look like?

Ask for a process proposal

Ask for a process proposal based on your own order profile. A good partner should be able to explain where handling takes place, which data is needed and how errors are prevented.

Good preparation makes the quote more valuable

Before a meeting, gather your number of SKUs, average orders and order lines, expected peaks, delivery countries, returns volume, personalisations and packaging wishes. Add which online store platform you use and which stock is already available.

From Ridderkerk, AJDN combines textile personalisation, storage and fulfilment. Want to assess whether that combination suits your clothing brand? Then share your order profile and the decoration steps you want. That allows the process to be worked out concretely without guesswork based on general rates or delivery times.

Sharing your order profile

You can email your order profile and your questions to info@ajdn.com or ask them in the AJDN App, where recognisable AI specialists help you with communication and advice.