Dive Brief:
- Ralph Lauren is opening a distribution facility in Greensboro, NC, to assume control of some of its own warehousing and inventory management.
- Since 2013, the retailer had contracted with XPO Logistics Supply Chain to manage logistics for the Chaps brand.
- XPO will close the Whitsett, NC, facility that handled Ralph Lauren goods, and 108 workers will be invited to join Ralph Lauren at its new facility.
Dive Insight:
Ralph Lauren announced it will bring distribution in-house for its Chaps brand, taking over warehousing and inventory management from third-party provider XPO Logistics Supply Chain Inc. Lauren will open and operate a new center in Greensboro, N.C. beginning in April, and invite former XPO employees to work there.
Lackluster financial results released earlier this month encouraged CEO Stefan Larsson to launch a review of Ralph Lauren’s operations. He said that the company can do a better job of aligning inventory to consumer demand so that goods don’t have to be sold at a discount.
More large retailers are taking control of supply chain operations to meet the demands of the omnichannel marketplace, with the idea that they can provide superior inventory control, avoid errors and produce fewer markdowns, the Wall Street Journal reports. Macy’s, Nordstrom, and Amazon are just a few of the companies that have started to operate their own distribution centers in recent years.
