GOODQUESTION Readers Weigh In What’s your best tip for retailers pivoting to direct-to-consumer (DTC) ful llment? Shift Gears
Recalibrate your processes and systems. The biggest failures we see are when companies simply layer-on a DTC fulfillment strategy (whether through stores, DCs, or web-based point-of- sale system) to their current fulfillment. Most retailers have spent a lot of time and resources finely tuning their fulfillment but the change to direct customer fulfillment unbalances these systems, leaving angry customers, inventory overages, and shortages. –David Barach VP Pricing Solutions, antuit.ai, a Zebra Technologies company Appreciate that DTC is quite different from store fulfillment. From receiving to shipping, there are material differences in process, timelines, and costs. Order placement timing, product included in an order, and speed of delivery are all decided by the customer—requiring flexible fulfillment operations with options to match the customer timing. –Laura Ritchey EVP and COO, Radial
Successful DTC fulfillment comes down to balancing customer acquisition cost, conversion rate, and average order value (AOV). AOV is critical—if it’s too low, shipping costs will eat up your margins. Keep AOV up by bundling products and using shipping partners who offer flexible fulfillment options that scale with you.
–Aaron Galer SVP of Strategic Partners Arrive Logistics
DTC FULFILLMENT CAN PROVIDE MORE CONTROL OVER THE PRODUCTS , and even packaging, that a retailer delivers, which is important amid heightened consumer demands. However, innovation requires accurate data—at the DNA level. By managing data proactively, companies can adjust to market conditions quickly. –Matthew Wright Founder and CEO, Specright
KNOW YOUR AUDIENCE AND TAILOR YOUR MARKETING TO HIGHLIGHT THEM. Everyone is
DON’T SKIMP ON RESOURCES to develop online capabilities and customer data acquisition. Social media presence targets the right customers while a robust order management system affects accurate processing, fulfillment, and shipping. Understanding consumption patterns informs product portfolio, and inventory and returns management. –Stanley Lim Assistant Professor, UNDERSTAND THE LANDSCAPE OF THE GOODS YOU’RE SHIPPING. The regulations, packaging and labeling requirements, and transportation mode can vary depending on where and how goods are shipped and the quantity. –Rhonda Jessop Director, Global Learning, Labelmaster Supply Chain Management Michigan State University
offering e-commerce; make sure you stand out to your target audience. Know your competition. Research their sites and what ease-of-use features they have (or lack) that you can offer to appeal even more to your audience. –Brian Gaffney
Supply Chain Specialist Natural Fiber Welding
PROVIDE A RELIABLE AND CONSISTENT FULFILLMENT
ENSURE THE LAST-MILE CUSTOMER EXPERIENCE IS EXCEPTIONAL . With the right technology, tools, and people, retailers can elevate the way they execute their delivery strategy by improving order visibility, communication, and inventory management.
EXPERIENCE that is on-par or better than their product/brand experience, while also managing a more challenging cost structure in parallel. Companies that neglect fulfillment experience do so at their own risk. –Matt Comte Operations Transformation Practice Leader, PwC
–Brian Kava CEO, PICKUP
8 Inbound Logistics • August 2022
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