Dive Brief:
- Lands’ End is still working though an inventory backlog spurred by challenges from implementing its new warehouse management system during Q1, CEO Charlie Cole said in a Q2 earnings call.
- The WMS had issues processing value-added service products, which impacted the timing of school uniform shipments, Cole said. The disruption delayed shipments and led backlog levels to be higher year over year.
- Still, “operations are proceeding as normal,” Cole told analysts, and the company is confident it has addressed the WMS-related issues in its core U.S. e-commerce business, according to CFO Bernard McCracken.
Dive Insight:
Despite the disruptions, the retailer continues to be bullish about the WMS upgrade’s long-term benefits.
Cole said that there are more efficiencies to be unlocked once the company is able to support the WMS with other software solutions.
Despite the potential benefits down the line, the recovery from the WMS rollout hurdles pushed Q2 inventory up 13% compared to last year, Cole said in the call.
However, Lands’ End took a lean inventory approach last year due to tariff uncertainty, making for a less favorable year-over-year comparison.
“We remain confident in our holiday assortment and expect inventory to remain within typical levels,” McCracken said.
Other companies like Pandora also see the upside of WMS upgrades. Earlier this year, the jeweler overhauled its supply chain technology stack, which included a new WMS aimed at supporting operational flows from manufacturing into distribution centers.
