Professional Documents
Culture Documents
Submitted to – Submitted by –
Mr. Rajnish Prasad Sinha Arshnain Madaan
Vedica Sharma
Table of Contents
1. Introduction……………………………………………………………. 3
2. Supply Chain of ASOS……………………………………………...….4
2.1 Designing stage …………………………………………………5
2.1.1 Brands of ASOS…………………………………………..….6
2.1.2 Circular Fashion roadmap……………………..……………..6
2.2 Sourcing & Production of products………………...……………7
2.2.1 Sustainable sourcing at ASOS……………………….……….7
2.2.2 Factories working with ASOS………………………………..9
2.2.3 Factories of ASOS in India………………………...……….. 11
2.3 Warehouse…………………………………...………………….14
2.3.1 Flexible fulfilment…………………….……………………. 16
2.3.2 Need…………………………………….……………………16
2.4 Sale to customers……………………….…...…………………..17
2.5 Handling returns at ASOS……………………………………….19
2.5.1 Sustainable return………………………………………….20
3. References……………………………………..………………………..21
2
Introduction
ASOS is a British online fashion and cosmetic retailer. It is famous worldwide for its latest
fashion and trends in menswear and womenswear. The company was founded in 2000 in
London, targeting the market of young adults. The website offers over 850 brands as well as
have their own range of clothing and fashion accessories. The brand ships to ships to around
200 countries currently with fulfilment centres in the UK, US and Europe. ASOS headquarters
are in Camden Town, at Greater London House with additional offices in Paris, New York,
Berlin and Birmingham. Their main fulfilment centre is in Barnsley, South Yorkshire, where
they employ 3,500 workers.
ASOS was founded on June 3, 2000. Its founders, Nick Robertson, British businessman,
Andrew Regan, a British polar explorer and entrepreneur, and Quentin Griffiths. It started with
the aim of selling items seen on TV at a cheaper price point. Thus, the original company name:
‘AsSeenonScreen’ which was change to ASOS.
Outside of own brand, the bestselling brands at ASOS are New Look (which accounts for 1.6%
of offering), River Island (1.5%) Nike (1.2%), Boohoo (0.7%), French Connection (0.8%), Ted
Baker (0.4%).
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ASOS has created brand awareness on a global scale, and fulfils orders placed from countries
throughout the world. As they target a youthful customer with a limited budget, it is crucial to
offer free shipping and returns on a global scale. ASOS is acutely aware of its customers
behaviours and attitudes, acknowledging that the extra cost of shipping will deter many
customers from purchasing merchandise. ASOS offers its customers free worldwide shipping
and free returns. Along with spectacular shipping/return options, the company focuses on
distribution efficiencies, e-commerce localization, and a strategic international online sales
plan to help scale globally which has made the supply chain of Asos exceptionally strong and
have set a benchmark for the industry.
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UK ASOS Designs
Manufacturing / Sourcing in
5 continents
Delivery to customers
1. Designing Stage
The website sells over 850 brands as well as its own range of clothing and accessories, and
ships to all 196 countries from fulfilment centres in the UK, US and Europe. The site receives
between 2,500 and 7,000 new products every week.
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Most popular brands ASOS:
❖ ASOS Brands.
❖ ASOS DESIGN.
❖ ASOS 4505.
❖ & Other Stories.
❖ AsYou..
❖ COLLUSION.
ASOS is meticulous on the timing of its trends too – the retailer doesn’t drop singular styles
into stock, it waits for full stories to be in stock and launches them in the one hit (hence the
variance in new product releases each week).
For their own line of clothing, ASOS has a separate, design, merchandising and sourcing team.
The company known for it’s sustainable practices. The Sustainable Sourcing team sits within
ASOS’ Responsible Sourcing department and advises our retail teams and suppliers on how to
design, source and innovate to create more sustainable products. ASOS over 500 Buying,
Design and Merchandising Administrators and Assistants.
Investing in upskilling design and product development teams in circular principles. In
partnership with the Centre for Sustainable Design at London College of Fashion, ASOS have
co-created a curriculum on circular product design and successfully completed training with
design teams in 2018.
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➢ ASOS is also working with innovative suppliers, such as DDI in Mauritius, to prove
the viability of more sustainable products – and then to apply the learning across the
entire product portfolio.
➢ Once the products come to the end of their useful life, ASOS is now finding ways to
reclaim and regenerate them. By 2020, for example, ASOS plans to have a clothing
take-back programme running in the UK and Germany, where customers can return
any of their clothing for recycling – not just denim, and not just ASOS products.
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➢ Building a circular fashion future: Using circular principles to guide our approach to
product design, materials and manufacture.
➢ Engaging customers on sustainability: Surfacing sustainable products and engaging
content to customers through the ASOS shopping journey to educate and inspire them.
Approximately 155,759 people working in our supply chain in tiers 1-3, of which 47% male,
53% female, and 12% are migrant workers. We currently have 173 suppliers, who between
them use 896 tier 1-3 factories. Our in-country Ethical Trade teams and third-party auditors are
located in China, Eastern Europe, India, Turkey and UK, and they’re responsible for
monitoring our suppliers in all 24 countries we source from.
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Factories working with ASOS
1. Asia and South east Asia
Continent: Asia
S.no Country No. of factories
1. Cambodia No of workers:5402
No of factories:6
2. China No of workers:23665
No of factories:231
3. India No of workers:23665
No of factories:231
4. Bangladesh No of workers:32696
No of factories:7
5. Sri Lanka No of workers:22659
No of factories:30
6. Thailand No of workers:631
No of factories:4
7. Vietnam No of workers:13718
No of factories:22
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3. Europe
Continent: Europe
S.no Country No. of factories
1. Albania No of workers: 1087
No of factories: 7
2. Bulgaria No of workers: 2740
No of factories: 39
3. Greece No of workers: 463
No of factories: 19
4. Italy No of workers: 501
No of factories: 24
5. Netherlands No of workers: 448
No of factories: 1
6. Macedonia No of workers: 196
No of factories: 2
7. Portugal No of workers: 206
No of factories: 8
8. Romania No of workers: 5048
No of factories: 61
9. Slovakia No of workers: 423
No of factories: 1
10. Spain No of workers: 95
No of factories: 4
11. Turkey No of workers: 14877
No of factories: 130
12. Ukraine No of workers: 133
No of factories: 1
13. United Kingdom No of workers: 1332
No of factories: 24
Following are few of the mills and garment factories that ASOS works with in India:
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Factory name Address Line Country Department No. of workers Male workers Female workers
Aditya Fashion Bhomiyaji ka Chabutra, Kishan Colony, India Apparel 0-150 100% 0%
Sanganer, Jaipur, Rajasthan, 302029
GL Washing 5, Jothi Nagar, 2nd Street, PN Road, India Apparel 150-300 95% 5%
Tirupur, Tamil Nadu, 641602
Gokulam Printers 3/516 C Thattchan thottam, India Apparel 0-150 100% 0%
Asthupalayam, T.M. Poondi(PO),
Tirupur, Tamil Nadu, 641652
Good Will Designcraft Plot No. D-2, First Phase - II, Ricco India Apparel 0-151 100% 0%
Pvt Ltd Industrial Area, Bagru, Jaipur,
Rajasthan, 303007
Ganesh Laxmi Behind Ajmera Cinema, Village India Apparel 150-300 95% 5%
Processors Pvt Ltd Kadodra, Surat, 394327
Future Enterprises Plot No G6, MIDC, Tarapur, Mumbai, India Apparel 500+ 26% 74%
Limited Maharashtra, 401506
Fiza Enterprises F2-861, Pipal Chowk, New Delhi, India Apparel 0-150 100% 0%
National Capital Region, 110062
Gunno Knits Pvt Ltd. 90 - 91 A, DLF Indl. Area, Phase - 1, India Apparel 150-300 100% 0%
Faridabad, Haryana, 394327
Gyan International E-51 E 51, Sector - 63, Noida, Uttar Pradesh, India Apparel 150-301 93% 7%
201301
HM Creation Village Garouli Khurd, Main Patoudi India Apparel 0-150 100% 0%
Road, Opposite Hanuman Mandir Gali,
Gurgaon, 122001
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Indigo Dunes 157,Kottaiyan Kattu Thottam, India Apparel 0-151 93% 7%
Mugugampalayam, Tirupur, Tamil
Nadu, 641687
India Fashion 12/2 Mathura Road, Faridabad, India Apparel 500+ 78% 22%
Haryana, 121003
Intech Apparels No. 27C, Kumbalagodu Industrial Area, India Apparel 0-150 100% 0%
Bangalore, Karnataka State, 560074
J.B Dyeing Mill Office Bangal Suiting, Sector-31, India Apparel 0-151 100% 0%
Village Sidola, Jasana, Haryana,
Faridabad, 121101
Jakir Hand Embroidery Madina Masjid Mohalla Mirdhan, India Apparel 0-150 100% 0%
Faridpur, Bareilly, Uttar Pradesh,
243503
Jai Bharat Dyeing & P-216, Kadodara Chaurasta, Tal- India Apparel 0-151 100% 0%
Printing Pvt Ltd Palsana, Surat, Gujrat, 394315
J.P. Kachiwala Textiles Faridabad, 121101 India Apparel 0-150 India Apparel 500+ 96% 4%
Pvt. Ltd. 100% 0% J.P. Kachiwala Textiles Pvt.
Ltd. A/36 Gujurat Eco Textile Park,
N.H.8 Palsana, Surat, 395003
Jaya Prints 1126 Bharathi Nagar, Periyar Colony, India Apparel 0-150 84% 6%
Tirupur, Tamil Nadu, 641652
Joy Poyfab Plot no.1801/ 2, 3rd Phase, G.I.D.C, India Apparel 150-300 100% 0%
Vapi, Gujrat, 396195
Kartikey Processor Plot No. 8 & 9, Industrial Area Phase-I, India Apparel 0-150 100% 0%
Near CNG Petrol Pump, M.G. Road,
Ghaziabad, 201015
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Plot No.545, Phase-II, HSIIDC Barh, India Apparel 150-300 90% 10%
KDH Textile Pvt Ltd Industrial Estate, Sonipat, 13110
KSG Mahima A-73, Sector-57, Noida, G.B.Nagar, India Apparel 0-150 100% 0%
(Computer Embroidery) U.P., 201301
M/S. Gee Kay Printing 1/110A,Sedarpalayam Road, India Apparel 0-151 100% 0%
Mills Goundampalayam,
Maethipalayam(po),Uthukuli R-s,
Tirupur, Tamil Nadu, 638752
M/S.Ankal Knits No:292/2 Desivanimmal Layout, India Apparel 150-300 64% 36%
Dharapuram Road, Tirupur, Tamil
Nadu, 641608
M/S.A.S Dyeing Works Gala No.9/A, Al Badar Society, India Apparel 0-150 100% 0%
Lokmanya Tilak Nagar, Sakinaka
Andheri (E), Mumbai, 400072
Maharaja Screen Print 3/517, Thatchankattu Thottam, Anna India Apparel 0-150 100% 0%
Nagar, Aathupalayam, Tirupur, Tamil
Nadu, 641652
Mahim Embroidery 869 F/F, Gali No. 7, Govindpuri, Kalka India Apparel 0-150 100% 0%
Ji, New Delhi, National Capital Region,
110019
Manju Enterprises H.No. 29, Gali No. 2 Peerbaba Basti, India Apparel 0-150 100% 0%
Jaitpur Badarpur, New Delhi, National
Capital Region, 110044
May Fashions LLP Compartment No. 138, Plot No 24/25 India Apparel 150-300 69% 31%
Marol Co.Operative Industrial Estate,
Andheri Kurla Road, Sakinaka, Andheri
(E), Mumbai, Maharashtra, 400059
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3. Warehouse
ASOS produces merchandise on five continents, all goods are stored in one central 600,000
square foot warehouse facility in the UK. Having a highly responsive, fast-paced supply chain
is another operational key to ASOS’ success. The distribution centre receives 1,500 new
products per week, in various sizes and color.
A single distribution centre helps effectuate the business model in several ways:
➢ Shipping costs per item are reduced, because items can be bundled and freighted to the
same location. These costs savings are passed on to the consumer, which helps keep
prices low for ASOS’ price conscious customers.
➢ Having a single distribution centre helps make fulfilment of orders faster and more
efficient, because all inventory is centrally stored.
➢ The free returns policy is supported by a single distribution centre by eliminating the
issues around inventory management (i.e. what merchandise belongs in which centre)
that would arise with multiple storage centres.
➢ ASOS now had 95% of its orders tracked which, not only benefits customers, but
reduces our lost-in-transit and customer care costs.
ASOS apart from its main warehouse in Barnsley has two other warehouse/fulfilment centres
in Atlanta and Berlin.
Shipment from their manufacturers are transported to the main warehouse in Yorkshire and
from their transported to their fulfilment centres in Atlanta and Berlin which act as a fulfilment
centre for customer orders.
Orders are made to their suppliers when stocks reach their reorder levels. This is where
customer orders are being sorted.
By replenishing their stocks, they can meet their customer’s orders and not turn them down
because stocks are not available. The availability of stock also forms the basis of their updates
on products on their websites in order for customers to make purchases
In Asos supply chain model, U.K. and "rest of world" orders are fulfilled from the U.K., orders
from the European Union and Russia are fulfilled from Germany, and U.S. orders are fulfilled
from Atlanta. If the designated warehouse does not have an item, that region's website will
show it as out of stock. Earlier ASOS had a warehouse in China as well, which was eventually
shut down.
These highly automated and technologically advanced warehouses enables ASOS to cost
efficiently manage a range of 85,000 customer facing SKUs, with 5,000 new SKUs added each
week, and offer next day delivery to over 80% of their sales base
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1. Warehouse in Barnsley, UK
The warehouse is based in Barnsley – it's the size of six football pitches, so pretty huge. Every
product of ASOS comes here and is checked, picked and packed before making its way by air,
land or sea, to be delivered.
This warehouse is responsible for fulfilling other warehouses around the world and for
delivering orders to customers in UK and customers apart from European and American
countries. The warehouse is responsible for:
o 37.4% sales, 993.4 Million Euros in retail sales
o 1.5 orders are placed every second.
o Barnsley warehouse currently provides more than 1.1m sq ft of floor space and
has the capacity to store 22 million units.
2. Warehouse in Atlanta, US
US sales make up for 12 percent of ASOS's total sales globally, and are growing twice as fast
as UK sales. Considering the growth, ASOS has developed a warehouse in US, the warehouse
will carry 10,000,000 units of product.
A new fulfilment centre was launched in Atlanta to better serve American consumers. The new
warehouse is one million square feet.
The warehouse in Atlanta will cater to orders from the entire US continent, which accounts for:
o 12.8% sales, 341.2 Million Euros in retail sale
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3. Warehouse in Berlin, Europe
ASOS has their own 80,000 m² warehouse near Berlin, Germany, stocks about 22 million
product SKUs, and employs thousands of associates who work diligently to receive inventory
and ship orders out to customers each day.
Its EuroHub warehouse in Germany dispatched 52% of all European orders; the new hub,
being built south of Berlin at a cost of €80m, will double its capacity when it opens next year.
The warehouse in Berlin will cater to orders from the entire Europe continent, which accounts
for:
o 31.1% sales, 825.7 Million Euros in retail sale
Flexible Fulfilment
• Asos will work toward a fulfilment model in which its global warehouse network will
fulfil any order from any warehouse.
• When an item is out of stock at the designated warehouse for that customer's address,
another warehouse in the company's global network will eventually fulfil the order.
That means U.S. orders could be fulfilled from Atlanta, the U.K. or Germany,
depending on where items are in stock.
• Vendors may also dropship to customers on behalf of Asos. The company said it will
phase in this "flexible fulfilment" strategy over several years.
• Asos will add a second U.K. fulfilment centre to its network, bringing the total to four.
The company expects the existing warehouse network to run out of capacity by 2023.
Need:
The varying levels of product flow and warehouse automation have created different
experiences for Asos customers in Europe and the U.K., compared to customers in the U.S.
European suppliers faced compliance issues when entering the U.S. market for the first time,
which slowed inventory build-up in Atlanta and led to a diminished assortment for U.S.
shoppers in the early quarters of 2020 and hampered sales.
Giving U.S. shoppers access to the global inventory may alleviate this problem in the future,
and monetizing currently unmet demand will eventually be worth the increased cost of transit.
A gradual rollout of the flexible fulfilment strategy may also help Asos avoid the elevated
airfreight rates supply chains are contending with at the moment as the coronavirus pandemic
stretches on. Flying goods from Europe to the U.S. is inherent in the plan for items out of stock
in Atlanta, and Transatlantic airfreight rates have been above historic levels for months as the
pandemic drastically decreased passenger flight and with it, belly cargo space.
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4. Sale to customers
ASOS processes customers through their websites. The website is divided into different
sections such as Women, Men, Marketplace and Blogs which all have their own sub sections
in order customers to navigate through and select items into their basket before heading to the
payment page. The following are part of their operations and transformation processes:
A) Guided Selling
This is done by suggesting other products to customers which is dependent on the
current product being viewed by the customers. Emails are also sent out regularly to
customers containing products and deals based on their shopping habits. This system is
achieved with the use of a Management Information system which identifies product
and customer trends.
B) Site Monitoring
This is carried out on a regular basis in order to monitor the activities of customers.
This process enables information to be gathered about products and customers.
This process enables ASOS to fix problems which the site is facing in order to process
their customers effectively.
New product lines are updated into the website and products which are no longer
available to purchase are being removed from the website so that customers know what
is available for purchase and what isn’t based on the warehouse stock.
C) Site Maintenance
As ASOS only trades online, their websites are regularly maintained and updated in
order for them to operate effectively.
D) Order Processing
After an order has been placed on their website, an order is being generated which has
to be processed by a staff. Here the items ordered would be sorted and then sent out for
shipping.
An email would then be sent out to the customer to let them know that their order has
been processed and tracking details are also attached.
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E) Customer Service
ASOS does not have a line which customers can ring up in order to resolve their queries
and there is also no instant chat facility on their website which could enable customers
chat with staff of the company.
However, they have other media which they use to deal with their daily customer
queries such as ASOS helpers which is on facebook, twitter and other ASOS blogs
where customers can contact them concerning their queries and a response is gotten
within the hour.
This means that ASOS has to ensure that they have enough trained staff available to
virtually deal with customer queries.
F) Payment Processing
This is done during checkout on the website where registered customers can use their
credit or debit cards, gift vouchers, student discount, Paypal as well as other
voucher codes to make payments.
The checkout facility enables customers to save their card details for faster processing
on their next purchase. This means that ASOS would protect their customer’s details so
their customers can feel secured.
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5. Handling returns at ASOS
➢ Customers can return any ASOS item (including sale items) for a full refund, within 28
days of receiving their original order.
➢ If the item is returned between 29 and 45 days, the customer receive an ASOS gift
voucher for the amount equivalent to the price of the product.
➢ ASOS does not offer exchanges on orders.
➢ Some items are restricted when it comes to returns, such as underwear, swimwear,
pierced jewelry, cosmetics/makeup or any items marked with a + next to the product
name.
➢ All goods are inspected on return and are the responsibility of the customer until they
reach ASOS
➢ Returned items should be sent in their original condition and packaging including tags
e.g. shoes should be returned with the original shoe box.
For returning products, ASOS customers have 2 options:
a) Return through USPS using one of the 35,000 post office locations nationwide, in
case of USA
b) Return through UPS Ground using one of the 47,000 locations nationwide, in case
of USA.
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a) ASOS aims to use 90% content in their packaging and products as recycleable.
b) They have started to reuse mailing bags they get from returned goods.
c) 3042 tonnes of packaging waste was recycled from sales in Europe alone.
d) ASOS delivery boxes are made out of 100% recycled materials, and bags are currently made
out of 65% recycled content.
e) Eliminating 9 tonnes annually of plastic used to wrap pallets and cages during stock
transportation between warehouses, by investing in Loadhog, a reusable transit packaging
container. Loadhog also enables to transport more stock as the lid facilitates secure double
stacking. The container is 100% recyclable at the end of its five year life.
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References
1.https://www.asosplc.com/corporate-responsibility/our-products/our-supply-chain#/asia-
and-south-east-asia
2. http://asosblog.blogspot.com/2013/04/supply-chain.html?m=1
3. https://jilt.com/blog/asos-shipping-logistics/
4.https://www.reutersevents.com/supplychain/retailcpgfashion/asos-not-so-secret-weapon-
success-its-supply-chain
5. http://cmuscm.blogspot.com/2014/03/asos-amazon-of-fashion.html?m=1
6. https://www.slideshare.net/mobile/josephman1/asos-a-strategy-behio
7. https://www.annualreports.com/HostedData/AnnualReports/PDF/LSE_ASOS_2019.pdf
8. https://theloadstar.com/asos-one-watch-redesigns-supply-chain-us-distribution/
9. https://www.parcelmonkey.com/retailer-returns/asos-returns
Annexure
1. Worldwide factory list for ASOS
https://www.asosplc.com/~/media/Files/A/Asos-
V2/PLC%20Factory%20List%20November%202020.pdf
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