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Get in touchExpert insights on the future of supply chains
Learn from Álvaro Ranz, our Global Head of Consumer Contract Logistics, about key challenges in today’s supply chains and how excellence in contract logistics is driving growth for consumer companies.
1. Tell us a bit about your background and how you came into your current role?
I have always worked in logistics. I started with a fourth-party logistics provider called CHEP, where I worked for four years in Madrid as an account manager. After that, I developed a 25-year career in the Fashion and Sporting Goods industries, working for brands like Camper, Nike, Loewe and C&A.
During this time, I have seen the transformation of the role of logistics and supply chains, both from a tactical perspective of minimising costs to a strategic aspect of a brands’ consumer experience.
The market has shifted to one where the consumer is in control. Brands today face the challenge of consumers having the market in the palm of their hands, choosing in their phones the value proposition that better suits them. They need to meet the ever-evolving expectations of new generations of consumers who have less brand loyalty and are used to immediate satisfaction.
In today’s market, product delivery is as important as the product delivered, and a late delivery affects the whole brand perception.
2. What are the main supply chain challenges your customers face, and how does contract logistics help address them?
Over the last decade, supply chains have become more complex and difficult to manage. Consumer service expectations have grown with the digital revolution. Supply factors like flexible capacity, reliable lead times, predictable cost, labour access and sustainability mandates bring added challenges.
As a third-party logistics provider, we should fulfil our customers’ diverse needs without them risking in-house investment. To better meet their needs, we develop partnership programs with customers to build the future supply chains they need.
3. How does contract logistics support seasonal demand and peak launches in the sports industry?
Our Contract Logistics solutions provide the flexible capacity customers need by enabling access to space and labour during peak demand. They also provide traceability for inbound volumes to support launches. Maintaining storage space when volumes are low only increases the cost. So, predicting product volumes is especially important in these times when inbound lead times are less reliable.
4. What role does speed to market play in sports supply chains today?
It plays a big role. In a market of rapidly changing consumer desires, our customers must speed up their supply chain lead times. In my experience, the biggest opportunity lies not in the logistics process but in product development and manufacturing.
Our Contract Logistics solutions provide the flexible capacity customers need by designing and implementing scalable automated operations to support speed. For manual operations, these solutions enable access to space and labour during peak demand.
5. What are the key challenges of managing high-value and limited-edition products?
The biggest challenge is that the service-level expectation is very high. There is no room for failure, and you must manage each unit individually. Customers need strong standards to provide this customisation at scale. On-time delivery is a must, in addition to all the security requirements these products have.
6. How do customer expectations differ in luxury logistics compared to the mass market?
In luxury logistics, it is all about the service levels. Luxury, by definition, must exceed customer expectations. When you pack a luxury item for an online order, it must match the store’s attention to detail: the unpacking experience must surprise and delight.
In mainstream brands, productivity is the key driver. Logistics costs four or five times more as a % of revenue in luxury. Therefore, the priority is to reduce the cost per unit and achieve economies of scale.
7. How does contract logistics help manage fast-fashion cycles and rapid product turnover?
It helps in two ways: by providing strong standards and capabilities and increasing predictability. To be fast, you need well-aligned standardisation along the supply chain. You also need technical capabilities.
From transportation to warehouse equipment, everything must be in sync to avoid bottlenecks and deliver throughput speed. Those are key elements of what we do in contract logistics.
8. What is the biggest challenge in handling returns and reverse logistics?
Cost and complexity. There is a big difference between the process of a B2B and a B2C operation. In B2B, the lack of standards presents a big challenge. Wholesale customers and even stores of the same company return products in nonstandard conditions. This makes the process complex, slow and costly in the receiving warehouse.
In B2B, brands have made a big effort to standardise how consumers return products to improve efficiency and speed. However, the challenge here is volume. In fashion, a return rate of more than 30% of units shipped is normal. This means you must reprocess, perform quality control and reclassify more than 30% of what you ship every day and make the inventory available again ASAP.
9. What trends and innovations do you see shaping the future of logistics in sectors such as fashion, luxury, sports and beauty?
In logistics, we are at the beginning of a big transformation. Automation, robotics and AI will change the way we do logistics in the coming years.
For this industry specifically, the emotional component of the consumer experience is so important. We need to learn how to use technology to satisfy consumers’ emotional needs. Customisation at scale allows the consumer to access products in a seamless, controlled and even inspiring manner–even sending them the product without them having to order it, based on analysis of their demand pattern. All those things are happening today, and I think they will become the new standard.
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10. How does Kuehne+Nagel differentiate itself when supporting global consumer brands?
Our global network and strong worldwide standards provide consistency and value for consumer brands. Kuehne+Nagel is a quality-driven company bringing excellence through our logistics experts. This level of care and expertise inspires trust with our customers.
About the author
Álvaro Ranz Serrano is a senior supply chain executive with more than 25 years of experience across the Fashion and Sporting Goods industries. He began his career at CHEP in Madrid before moving into global leadership roles at Camper, Nike, Loewe (LVMH) and C&A, where he led major supply chain and logistics transformations in Europe and Latin America.
Throughout his career, Álvaro has witnessed the evolution of the supply chain from a cost‑driven operational function to a strategic enabler of the consumer experience. His expertise lies in helping brands adapt to a market where consumers hold full control of their purchasing journey and expect immediacy, consistency and seamless service.
In his current role at Kuehne+Nagel, Álvaro serves as Global Head of Consumer Contract Logistics.
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Explore more Consumer Talks insights
Discover more expert perspectives from the Consumer Talks series. Learn how logistics professionals are navigating complexity, disruption and change across global markets.
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