SCD: Levi Strauss moves away from insourced logistics network

SUPPLY CHAIN DIVE reports:

Levi’s shift follows several other companies who have re-evaluated their fulfillment strategies in a bid to gain greater control over their operations or trim expenses. While a perfect approach to fulfillment doesn’t exist, operational needs, demand swings and shipping disruptions are just a few of the factors businesses are taking into consideration.

For instance, DavidsTea split from its existing fulfillment service provider in 2023 to insource its operations. While the company saw lower revenues at first, DavidTeas’s saw gross profit increase due to the lower cost per unit driven by internalizing its fulfillment operations.

In Levi’s case, the hybrid fulfillment model aims to give the retailer room to focus on its larger DTC strategy while slashing costs. The company’s distribution model has been top of mind as Levi’s looks to optimize supply chain operations…

To read the full post, please click here.