Revolutionizing the Underwear Industry: How Parade Optimizes Their Supply Chain for Unprecedented Growth

Introduction: A New Player in the Underwear Market

In the world of fashion and retail, few sectors have seen as much disruption and innovation as the underwear industry. Among the new players making waves, Parade stands out as a beacon of change. Launched in October 2019, this high-growth, inclusive underwear brand has defied expectations by achieving record growth even amidst a multi-year supply chain crisis that has crippled many established retailers.

Parade’s success story is not just about trendy designs or clever marketing. It’s a tale of supply chain optimization, digital savvy, and a deep understanding of their target market. Let’s dive into how this young brand is reshaping the creative basics industry and what lessons we can learn from their approach.

The Parade Phenomenon: Growth Amidst Chaos

While many retailers struggled to anticipate and meet demand during the pandemic, Parade experienced non-stop growth since its launch. By September 2021, the company was valued at an impressive $140 million during its Series B funding round. The brand closed last year with a remarkable threefold revenue growth, a feat that’s particularly noteworthy given the challenging economic climate.

What’s driving this exceptional performance? Several key factors come into play:

• A digitally-savvy Gen-Z customer base
• An unwavering focus on size- and gender-inclusivity
• A strong commitment to sustainability
• An optimized supply chain that can keep up with surging demand

Behind the Scenes: The Logistics Powerhouse

At the heart of Parade’s operational success is a lean but mighty logistics team, led by Shreya Maddireddy, the Director of Operations & Customer Experience. For Shreya, optimizing the supply chain is not just a business necessity; it’s a daily puzzle that keeps her on her toes.

“COVID-19 has made production and international shipping increasingly challenging and complicated, with delays and shutdowns constantly plaguing the supply chain,” Shreya explains. “It forces us to continuously adapt, and makes for an incredibly fun problem to solve on a daily basis.”

Unique Challenges in the Underwear Industry

Parade’s journey hasn’t been without its hurdles. The brand faces a unique set of product-specific challenges that add layers of complexity to their supply chain management:

1. Seasonality: Product launches are often tied to holidays like Valentine’s Day and Black Friday, requiring months of advance planning and coordination.
2. Color Options: Offering a wide range of colors means managing a more complex inventory.
3. Sizing: As an inclusive brand, Parade must ensure they stay in stock for all sizes, especially plus sizes.
4. Product Size: The small size of their products limits shipping options, making full container load (FCL) ocean freight impractical.

Despite these challenges, Parade’s main goal remains clear: keeping customers happy with on-time deliveries. This is no small feat for a supply chain that spans multiple countries, including Vietnam, China, Mexico, Turkey, and the US.

The Digital Logistics Solution: Partnering with Flexport

To navigate the complex world of international logistics and pursue their customer satisfaction goal, Parade found a valuable partner in Flexport, a Digital Logistics Platform. This partnership has been instrumental in streamlining Parade’s supply chain and providing the expertise needed to overcome logistical hurdles.

One Source of Truth for Collaboration and Data

Shreya emphasizes the value of the Flexport platform in her daily operations: “I use the Flexport platform on a daily basis and I heavily rely on my Flexport team as an operations partner. It has been extremely helpful to have a one-stop shop to communicate with suppliers, manage shipments, file insurance claims, and even offset carbon emissions. Consolidating all this functionality and more on one platform makes the management of our supply chain seamless and streamlined.”

The platform provides Shreya and her team with crucial data to make informed decisions about their supply chain operations. It offers insights into key metrics such as:

• Number of units per shipment
• Cost per unit
• Carbon offsets

“Through Flexport, I’m able to give my team important answers,” Shreya notes. “As our supply chain impacts each team at Parade, Flexport is critical not just for me but also for working cross-functionally.”

This level of transparency and end-to-end track and trace data is mission-critical for Parade. Shreya exports this data daily and integrates it with their PO and warehouse tracking systems, facilitating better collaboration across teams and keeping everyone updated on the latest supply chain developments.

Extending Parade’s Logistics Team with Flexport’s Experts

As a one-person logistics team, Shreya’s role at Parade is multifaceted, encompassing international freight, warehouse logistics, D2C logistics, retail operations, and customer experience. In this context, the support of Flexport’s customer success team has been invaluable.

Shreya credits Flexport’s client success team for their:

• Valuable advice
• Creative problem-solving skills
• Timely market insights

These factors have been key to Parade’s success despite the challenges posed by the pandemic. “As a one-person team, it’s hard for me to pay attention to everything,” Shreya admits. “I have had a huge amount of learning from my Flexport support team.”

Flexport’s in-house experts have also been instrumental in identifying creative ways for Parade to navigate the supply chain delays that most brands are experiencing.

Walking the Talk on Sustainability

Parade’s commitment to sustainability is more than just a marketing ploy; it’s a core part of their business strategy. Shreya explains, “We’re in a very scary climate crisis and the more that companies prioritize sustainability in their business, even companies that you wouldn’t expect it from, it makes a huge difference.”

By working with Flexport.org, Parade has already offset an impressive 522.56 TCO₂e in carbon emissions. This commitment to sustainability resonates strongly with their millennial and Gen-Z audience, further solidifying their brand loyalty.

Lessons for the Industry

Parade’s success story offers valuable lessons for other businesses in the fashion and retail sectors:

1. Embrace Digital Solutions: Leveraging Digital Logistics Platforms can provide real-time insights and streamline operations.
2. Focus on Inclusivity: Catering to a diverse range of sizes and needs can open up new market opportunities.
3. Prioritize Sustainability: Environmental consciousness is increasingly important to consumers, especially younger demographics.
4. Stay Agile: The ability to adapt quickly to market changes and supply chain disruptions is crucial for success.
5. Invest in Partnerships: Collaborating with experts can extend your team’s capabilities and provide valuable insights.

Conclusion: The Future of Fashion Logistics

Parade’s journey showcases the power of combining innovative products with a well-optimized, digitally-enabled supply chain. By leveraging Digital Logistics Solutions and expert partnerships, even a small team can achieve remarkable growth in challenging times.

As the fashion industry continues to evolve, brands that can harness the power of Digital Logistics Platforms and maintain a strong focus on sustainability and inclusivity will be well-positioned for success. Parade’s story is not just about underwear; it’s a blueprint for the future of retail logistics in a fast-paced, digitally-driven world.

At FreightAmigo, we understand the challenges faced by brands like Parade. Our Digital Logistics Platform is designed to help businesses of all sizes optimize their supply chains, gain real-time insights, and navigate the complexities of international shipping. Whether you’re a startup looking to disrupt your industry or an established brand aiming to streamline operations, we’re here to support your journey to logistics excellence.