CUSTOMER STORIES

Luxury Goods Distributor

December 5, 2021

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CASE STUDY: LUXURY GOODS

A global luxury goods distributor ships products such as high-end clothing and handbags from a manufacturing facility in Vietnam to US warehouses by truck and sea freight. The products are made from materials that are very humidity-sensitive, so the company uses Tive’s supply chain visibility solution to monitor in-transit humidity levels as well as to ensure on time delivery. 

CHALLENGE

These luxury goods can be damaged if exposed to excessive humidity levels or high temperatures, since condensation caused by environmental fluctuations can lead to water damage for leather goods. In the past, the company was often forced to throw out goods that were damaged en route, or sell them at discounted prices. This was both costly for the manufacturer, and detrimental to the end customer experience. In addition, because they wouldn’t find out about the problem until the goods arrived, the company would be forced to pay expensive fees to expedite replacement shipments.

SOLUTION

With Tive’s supply chain visibility solution, the company is able to monitor their goods in real time. If a temperature excursion or humidity spike occurs, they can work with the carrier to resolve the issue, or if the products may already be damaged, they can make sure there are personnel available to inspect the goods upon arrival and prepare replacements right away to avoid expediting fees. With real-time tracking, the company can determine exactly when and where the damage is occurring, enabling them to tell the difference between a product that was defective when shipped and a product that experienced in-transit damages. This makes it possible for the company to pinpoint and eliminate the root cause of product damage.

Tive’s supply chain visibility solution makes it possible to set precise thresholds for environmental conditions and receive real-time alerts if those thresholds are exceeded.

IMPACT

Immediate insight into exactly when and where shipments were experiencing harmful humidity levels made it possible for the company to reduce waste and costs associated with high damage levels. In addition, they were able to use the precise data provided by Tive to work with their carriers to eliminate the root cause of issues. For example, if the data indicated that certain routes were much more likely to experience harmful conditions, the company could request that that particular route be avoided.

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