Zalando has started delivering Adidas orders in Paris as the two German fashion retailers team up in logistics to get goods to customers faster.
The high-profile deal, which was unveiled today, is the latest win for Zalando as it scales up its third-party fulfilment services, including warehousing and deliveries. More than 100 brands now use the company’s fulfilment service in 14 European countries.
In a multi-channel pilot scheme, Zalando is delivering goods ordered through the Adidas.fr webshop from its own logistics center in Moissy-Cramayel on the same or next day to Adidas customers in Paris. The test will initially run for 6-12 months, after which both partners will evaluate the results.
Zalando explained that the pilot, which started in the beginning of August, is its first trial when it comes to multi-channel models. With this approach, the company aims to provide brand partners with additional and easier ways to connect to the Zalando platform.
So far, the first parcels have been successfully delivered to Adidas customers in Paris. They receive their orders faster, within a two-hour delivery window on the same or the following evening, all with the usual look and feel. Despite the parcels being packed in a Zalando logistics center, they come in an unbranded shipping box.
"The test is an important step within our platform strategy. We are very happy that we are once more joining forces with our long-term partner, Adidas, to test an exciting approach where we create synergies for the benefit of our customers. Adidas customers benefit from faster delivery, and Zalando customers benefit because the pilot allows us to extend Zalando’s same-day delivery areas," said Jan Bartels, Senior Vice President Customer Fulfillment.
Alexandra Morton, Senior Vice President Supply Chain Management Europe at Adidas, added: "As a sports company, we know that speed wins. Today our target group, the Creators, live in a constantly changing world, which shapes their behaviour and expectations.
“This is where the pilot comes in, where Adidas customers in the strategically important city of Paris benefit from faster delivery. The pilot project shows what distinguishes our long-standing and successful partnership. Adidas and Zalando share a passion for experimentation and innovation. This gives us the opportunity to try new things continuously. We are excited to see how our customers take up this offer."
With the current project, Adidas and Zalando are also addressing changes in e-commerce. Today, customers expect ever-faster deliveries. Brands want to reach their customers through more than one channel and in different countries. This means that stock has to be increasingly distributed across different locations.
Zalando plans to complement its Zalando Fulfillment Solutions (ZFS) with multi-channel solutions. As of today, more than 100 brand partners in the partner program use ZFS, and store parts of their assortment in Zalando-owned warehouses. Zalando takes over the distribution to customers in currently 14 European markets.
"In Paris, we are testing with a non-ZFS partner, but we are piloting an important component of our future ZFS offering. We see a great deal of potential to test the multi-channel approach with brands that already store parts of their assortment with us. By opening up Zalando's strong European logistics network to our partners, they profit from our logistics expertise, and together we work more efficiently," Bartels explained.
Under the multi-channel fulfilment approach, retailers can sell goods through their own webshops and the Zalando Fashion Store. The goods are stored in the Zalando fulfilment centre, packed by the Zalando logistics workers and then handed over to the final-mile delivery partner.
According to Zalando, retailers using its Fulfilment Services can reduce logistics costs by up to 25% by sharing infrastructure and delivery capacity. Moreover, goods ordered from different brands can be consolidated into single deliveries, thus reducing package volumes and the environmental footprint.
Overall, Zalando aims to become a multi-brand sales platform that is ‘the starting point for fashion’ in its markets and steadily build up third-party fulfilment services, which it launched in 2017.
