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Part II: The Importance of Logistics

Photo: HBS

Timeless Trademark continues its five-part series revolving around Rent the Runway. Today, we discuss the importance of logistics. Please find Part I.

NEW YORK — News about the struggles of Rent the Runway started appearing in late September, and RTR learned a simple lesson: a company’s supply chain is a part of the customer experience.

When you skimmed #RenttheRunway on Twitter, you learned that these customers weren’t just expecting a dress — they were expecting a dress on time.

The company could lose US$2MM, before it even begins paying customers US$200 each for cancelled orders. Aside from losing current, disgruntled customers, RTR announced it would not accept any new customers or one-off rental orders before 15 October.

Crises like this make it clear that excellent customer service largely depends on flawless operations and supply chain capabilities.

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