E -commerce and retail sales at Caraway, a cookware and home goods company, soared over the past few years. Early in the pandemic, “our brand and space became extremely relevant,” as more consumers prepared meals at home, says Mark Riskowitz, vice president of operations. The growth hasn’t let up; sales for Q4 2022 were expected to at least double that of the same period in 2021.
inventory—across all channels. They also need to know where their products are, and then collect this information in a machine-readable way that can be managed at scale and shared with business partners. Without these capabilities, companies risk lost sales and/or incurring higher- than-needed inventory carrying costs. Gaining visibility across channels also requires uni ed, rather than siloed, operations. During the pandemic, many companies established or maintained separate e-commerce operations. “But that back red,” says Inna Kuznetsova, chief executive of cer with ToolsGroup, a provider of supply chain planning software. It often led to duplicated efforts and lost sales because separate channels hinder a company’s ability to track inventory and ll orders—no matter where the inventory is located. In contrast, an accurate view of all inventory units across all channels and locations allows companies to adjust to meet market or supply chain shifts. For instance, if online sales of a product spike after a TikTok video showcasing it goes viral, companies operating with a uni ed approach can check inventory in their stores as they determine how to meet demand.
“Building a data-oriented, software- rst approach to logistics is how you stay nimble and raise the bar on buyer experiences, even when the supply chain goes haywire,” says Soumya Srinagesh Tulloss, chief customer of cer with Shopify Ful llment Network, a provider of e-commerce solutions. These capabilities will be especially important as organizations face ongoing supply chain disruptions and an uncertain economy. “There will be a lot of pressure on e-commerce strategies going forward,” Higgins says. GAINING VISIBILITY “Visibility is foundational,” says Melanie Nuce, senior vice president, innovation and partnership with standards organization GS1-US. To capture every order possible, companies need to know what they have in
To help manage its growth, Caraway partnered with third-party logistics provider ITS Logistics, leveraging a “uni ed approach” that provides an ef cient, single source for omnichannel distribution and ful llment operations. As a result, Caraway has been able to meet a 280% jump in orders between 2021 and 2022. Caraway also is diligent about accurate, timely demand planning. “Planning and modeling is built into our DNA,” Riskowitz says. SUSTAINED PERFORMANCE When online transactions boomed during the pandemic, rms rushed to bolster their e-commerce operations to handle the growth. Now, many are faced with developing strategies to make e-commerce nancially sustainable. “The accelerated e-commerce growth was great for consumers, but added a lot of supply chain costs,” notes Tyler Higgins, managing director with consulting rm AArete. Filling and shipping individual orders tends to be more expensive than moving pallets of goods from distribution centers to stores. Complexity also ramped up, as companies now must manage orders placed through multiple channels, including brick-and-mortar stores and websites, online marketplaces, and social media. As Caraway’s experience shows, a uni ed approach to omnichannel order management and distribution, along with a focus on demand planning, are keys to building a sustained e-commerce success. Visibility, ef ciency, and the ability to leverage data also are critical attributes.
Caraway, a popular brand of premium, non-toxic kitchenware, has cooked up a significant presence in the e-commerce space. The company tapped third-party logistics provider ITS Logistics to support its expansion into omnichannel markets, specifically focusing on increasing its presence in partnered retail stores.
January 2023 • Inbound Logistics 103
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