Exotec Nihon Releases White Paper on Apparel Logistics

Exotec Nihon Co., Ltd. (Minato-ku, Tokyo, Representative Director & President for Asia Pacific Tatsushi Takiwaki, hereinafter referred to as Exotec), a wholly-owned subsidiary of Exotec SAS (Headquarters: Croix, France, CEO: Romain Moulin), has released a white paper titled "Practical Logistics Improvement Guide to Support the Growth of Apparel Companies." This paper outlines practical approaches using the warehouse robot system "Skypod®" to address the structural challenges faced by the apparel industry, including rising e-commerce rates, purchase interruptions due to delivery delays, soaring labor costs, and increasing returns.

In recent years, consumer purchasing behavior has rapidly shifted online, with sales via e-commerce in the Japanese apparel market expanding to account for over 20%. Consequently, while accepting orders through both store and e-commerce channels has become commonplace, challenges such as increased workload and operational complexity in warehouses have emerged. Furthermore, the EU is strengthening regulations on inventory waste, requiring companies to manage inventory more rigorously. Amidst these environmental changes, many apparel companies are facing multifaceted issues including rising labor costs and labor shortages, delivery delays, and the complexity of on-site operations.

【Three Challenges Faced by Apparel Companies】

Rising Labor Costs and Labor Shortages The nationwide weighted average minimum wage for fiscal year 2025 is set to increase to 1,121 yen (a 66 yen increase from the previous year / Ministry of Health, Labour and Welfare), directly impacting apparel logistics, which relies heavily on manual labor. During peak seasons such as sales and season transitions, shipping volumes can increase severalfold, while securing short-term staff becomes increasingly difficult each year.

Delivery Delays According to a survey by a US research firm, approximately 40% of e-commerce users abandon purchases due to "slow shipping," and about half of these complete their purchase with a competitor. For highly seasonal apparel, missing the right timing can directly lead to discounts and inventory backlog.

Increasing Complexity of On-site Operations

Store replenishment and e-commerce shipments differ in shipping units, work procedures, and packaging requirements. When returns processing and distribution processing are added, the personalization of work and delays become commonplace.

Exotec is seeing an increase in inquiries regarding the efficiency and automation of e-commerce logistics, particularly from apparel companies. This white paper systematically organizes the challenges and needs of such companies, consolidating everything from market trends in apparel logistics to approaches for solving issues through warehouse automation into a single practical guide. It is structured to allow readers to learn the fundamentals of apparel logistics in one place, aiming to serve as a practical guide for those involved in logistics improvement.

This white paper can be downloaded here.

Exotec Nihon will continue to focus on solving the logistics challenges in the expanding apparel e-commerce market. Through the warehouse robot system "Skypod®," we will respond to operational challenges unique to e-commerce, such as high product variety, small lot sizes, and short delivery times, and support the e-commerce growth strategies of Japanese apparel companies from a logistics perspective through practical information dissemination based on customer feedback.

About Exotec

Exotec provides sophisticated Goods-to-person warehouse robotics solutions for the world's leading brands. We combine high-performance hardware and software to build flexible warehouse systems that improve operational efficiency, enhance fault tolerance and resilience, reduce the burden on warehouse workers, and improve working conditions. Over 50 industry-leading brands such as Carrefour, Decathlon, GAP, and UNIQLO utilize Exotec to improve their operations, generate profits, and adapt to the rapid changes in business models and customer expectations.

For more information, please visit Exotec.com (https://www.exotec.com/ja/).