Global footwear innovator taps 3PL expertise to boost U.S. presence

From the September-October 2024 edition of Supply Chain Management Review.

September-October 2024

Back in late 2023, in response to global panic about the state of the supply chain, President Joe Biden announced the formation of the White House Council on Supply Chain Resilience. “We’re doubling down on our…

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Sliding your feet into a pair of flip flops brings a wave of relaxation. FitFlop understands the feelings that its variety of sandals and footwear invokes, and it has been a game-changer since entering the industry in 2007. At the time, it was generally accepted that a shoe couldn’t look good and feel great, but the London-based newcomer set out to turn that assumption on its head.

In fact, the company responded with a sandal that combined style with science, and it continues to dream and defy conventions associated with footwear. Its mission? To design smart footwear that works with your body to optimize your energy, every day—and it was ready to continue that mission here in the United States.

A blend of comfort and science comes to the U.S.

One of FitFlop’s secret weapons is a long-time collaboration between a biomechanist and a beauty entrepreneur, both of whom work together to create stylish footwear that goes well beyond your typical pair of flip flops or sandals. For example, the company uses “Microwobbleboard technology” to develop a midsole that features a specific density that encourages better posture and muscle engagement. 

Sandals remain a mainstay for the company, but FitFlop has also expanded into boots, clogs, and sneakers over the last few years. Today, it has a presence in more than 70 countries and a supply chain that spans the globe. In mid-2023, the company opened its first U.S. store in New York City. It also established partnerships with key wholesale customers across North America, making its comfortable footwear more accessible to a wider swath of customers.

The footwear manufacturer’s expansion strategy also required a different logistics approach to maximize its growing popularity (most of its products are made in Asian factories, the majority of which are in Vietnam). FitFlop needed a new third-party logistics provider (3PL) that could cover its expanding North American operations, so it began evaluating its options.

“We’d been working with one 3PL for a while, but the shape of our market and our logistics requirements naturally changed over the course of time,” says Sal Billington, global logistics director. “We wanted a partner that could collaborate with us, leverage the different shipping options in the United States and deliver faster in Canada.”

This was especially important because it would support FitFlop’s digital selling strategy. “We wanted to extend our order intake window, pack quicker, and ship those orders out later in the day,” says Billington, whose team evaluated a few different 3PLs before selecting Ryder System. “The 3PL’s operational solutions side and client base—particularly in terms of the e-commerce operations that it supports—made Ryder a good fit for us.”

Later cutoff times, two-day delivery options

Today, the 3PL handles all FitFlop’s outbound deliveries in North America, including the receipt of those goods at its warehouses, fulfillment of orders, and then the assignment of deliveries to carriers or other freight providers.

Ryder receives the stock and then picks and packs the orders. Then, the transportation providers pick up those shipments at Ryder’s warehouse and deliver the goods to wholesale, dropship customers, and digital consumers.

FitFlop also recently rolled out a two-day delivery option for customers in the United States, where it didn’t previously offer that expedited shipping choice. From its location in Ohio, for example, the 3PL could always offer FitFlop’s customers standard delivery of two days to five days depending on what U.S. shipping zone that customer was in. Now, customers can pay extra to have orders delivered within two days.

Billington says Ryder also helps the brand “rate shop” across a basket of carriers that the 3PL uses. “We can look at some of the other providers in the market and compare pricing and service across all the various options,” she explains.

Getting everything right

FitFlop began working with Ryder in January 2024, so, while Billington’s recounting of the companies’ time together is favorable, she couldn’t share any specific results or benefits of the alliance yet. “Every time you open a new warehouse, there’s always that painful journey getting everything right,” she says. “Now that we’ve passed through that phase, we’re focused on stabilization and continuous improvement.”

For example, Billington says she’s tracking the positive results over a consistent period of time, which this year will likely bump right up against the company’s peak shipping season. “By   September, we’ll have our peak plan locked down,” she explains. “For me, it’s all about stabilization so that we can deliver that first peak very successfully.”

From there, Billington will look for even more ways to continuously improve the company’s North American logistics operations with Ryder’s help. That approach will carry right into 2025 and will include reviewing the year one results and improving the efficiency of certain processes and simplifying others. She expects this focus on continuous improvement to continue, namely because FitFlop operates in an industry where no one can afford to sit still or rest on their laurels.

“Things change quickly in the fashion world. When it comes to footwear, in fact, customer demand can pivot within the course of a single season,” Billington points out. These quick pivots require an agile, flexible supply chain that’s ready to rise up and meet the challenge in an efficient, effective manner—all while continuing to innovate and develop great products that customers love wearing.

Supporting a multifaceted supply chain

From sleek slides to sporty sneakers, FitFlop’s footwear caters to various styles and activities. This allows the manufacturer to target an even wider audience that wants a comfortable, on-the-go style that aligns with current fashion trends. The company has even collaborated with some notable Thai designers to ensure that its unique, comfortable shoes exceed its customers’ expectations.

“We’re always pushing for our customers to have very up-to-date products in their closets,” says Billington, “which is why we always need a strong logistics infrastructure behind us, ready to deliver those products on our behalf.” She adds that FitFlop has that infrastructure and ideal location with its 3PL partner, a company whose own corporate culture aligns very well with the footwear manufacturer’s own mission, goals and culture.

Billington has a team based in the United States and visits Ryder’s location every few months and enjoys watching the 3PL’s employees in action. “Their team cares a lot about us as a client. They love the product and always look after it for us,” she says, adding that the care shows not only in the picking and packing process, but also on the reverse logistics end, where they quickly receive, inspect, and repackage saleable products.

“I’ve stood and watched them in the warehouse repurposing our footwear, making it neat, tidy, repackaging it, and putting it back in a box so it looks like new,” says Billington. “I love watching that process because it makes me feel really good to know that our partner has nurtured our product back to a saleable status.”  •

Bridget McCrea is a contributing editor for Supply Chain Management Review

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