Overcoming inventory and delivery challenges, American fashion brand Mugsy has transformed after switching to a new third-party logistics (3PL) partner. By optimizing operations and shipping costs, the company has not only maintained a positive customer experience but also rapidly expanded its product catalog, moving closer to its goal of becoming a comprehensive lifestyle brand.

Logistics: a springboard for growth

With a direct-to-consumer (DTC) model, Mugsy relies entirely on speed and accuracy in delivery. Strategic warehouse location, accurate inventory management, and controlled shipping costs are vital.

Initially hoping to reduce costs and delivery times by choosing a warehouse in Columbus, Ohio, Mugsy partnered with a local 3PL. However, the reality was the opposite, with serious inventory discrepancies, system errors, and order issues. Operations Director Scott Dulany even had to fly to Columbus weekly to address the problems.

In late 2022, before the peak shopping season, Dulany decided to find a new partner. After being introduced to Whiplash, an e-commerce logistics company (acquired by Ryder in 2022), Mugsy quickly transitioned in less than six months.

Mugsy employees prepare orders at the logistics center in Columbus, ensuring products reach customers quickly and accurately. Photo: Logistics Management

Mugsy employees prepare orders at the logistics center in Columbus, ensuring products reach customers quickly and accurately. Photo: Logistics Management

Investing for increased efficiency

Thanks to Ryder, Mugsy has reduced shipping costs, improved service quality, and leveraged modern warehouse management technology. The company now ships nationwide from a single warehouse in Columbus, fulfilling orders in two to four days in major markets like New York, Chicago, Los Angeles, and Washington D.C., while also supplying seven retail stores.

Technology and logistics turn the tide

Mugsy is piloting GreyOrange's automated pick-pack system and consolidating forward and reverse logistics processes at one location to accelerate returns processing. This has resulted in more accurate returns data and faster inventory turnaround.

Leveraging Ryder's network scale, Mugsy also benefits from lower shipping rates and a diverse range of carriers, from FedEx, UPS, and DHL to OnTrac. A "best-cost" algorithm helps select the fastest delivery option at the optimal price.

In the future, Mugsy plans to continue investing in warehouse technology, particularly in returns management, and expand to additional warehouses to serve the West Coast market faster. Dulany believes Ryder will continue to be a partner in this process.

"We are transitioning from a small to a mid-sized business, so we need a reliable partner who can help us solve problems and seize opportunities," Dulany stated.

Founded in 2016 in Chicago, fashion brand Mugsy made its mark with stretch jeans – a distinct alternative to traditional men's jeans. For the first five years, the brand primarily sold directly through online channels. In 2020, when Scott Dulany joined as Operations Director, the goal was clearly defined: to expand Mugsy into a comprehensive lifestyle brand with a wider range of products such as flannel shirts, chinos, and swim trunks, while optimizing the supply chain and operations.

"Customers come to us for jeans, but now they can buy a complete outfit, from flannel shirts and chinos to crewneck or pullover sweaters," Dulany shared.

Gia Han (Logistics Management)