Rent the Runway cancelled orders and froze signups after a warehouse software upgrade

Supply Chain Dive reported on Sept. 30, 2019 that Rent the Runway's fulfilment operation began to suffer delays on Sept. 13 while it upgraded its warehouse system. CEO Jenn Hyman wrote to customers on Sept. 20 that the 'operational transformation' would improve the customer experience and inventory availability once the current mistakes were worked out. Special-event and monthly subscription orders failed to arrive on time or were cancelled.

Out of 'an abundance of caution,' the company cancelled orders scheduled to arrive between Sept. 30 and Oct. 6, saying it was not confident it could fulfil them, and gave full refunds plus $200. It stopped accepting new orders and new unlimited subscribers until after Oct. 15. Chief Supply Officer Marv Cunningham announced he would step down at the end of the month after a year in the role; neither he nor the company said it was linked.

It was not the first problem that year. In July, per the Wall Street Journal, the company had technology, customer service and clothing availability issues and apologised, promising to double customer service staff. Vox reported that subscriptions now made up more than 70% of its business.

The company changed its warehouse system while operating, and the upgrade disrupted fulfilment for time-sensitive rentals.

Its customers need clothes by a specific event date, so delays turn directly into cancelled orders.

Supply Chain Dive noted that the supply chief's departure left the company managing rapid growth without him.

Changing the fulfilment backbone of a business that sells time-sensitive events is risky at full speed. A rental brand's promise is that the dress arrives on time.

On Oct. 9, 2019 the company said fulfilment was back to normal and it was again accepting new subscribers and orders. It said the system upgrades, first expected to finish by Oct. 15, were completed ahead of schedule.