.A well-known Consumer Goods Company’s DTC channel activities have relied on a mutually beneficial relationship with an outside vendor for a long time. They have maintained their competitive edge due to teamwork, culminating in the flawless processing and delivery of an astounding 20 million DTC orders annually.
Challenges
For the Consumer Goods Company, navigating the ever-changing world of direct-to-consumer (DTC) distribution was a significant challenge. Upholding the DTC network’s efficiency became important when customer tastes changed and online shopping took off.
We needed to overcome these challenges and need improvement to boost productivity!
Three key areas of improvement include:
Complexity of Operations: Order processing and fulfillment problems were possible due to the high operational complexity of managing five DTC distribution locations nationwide. Legacy systems were overwhelmed by the influx of new orders, and logistics were made more difficult by the geographical dispersion.
Satisfaction of Customers: With consumer expectations skyrocketing, providing a smooth and customized purchasing experience was the most important goal.
More and more people wanted alternatives that allowed them to personalize their experience, and order monitoring and status visibility in real time became an absolute need.
Our clients want nothing less than the best from us. We need to impress them at every turn.
Economic Effectiveness: The organization always struggled to find the optimal balance between operational excellence and cost efficiency.
- Profit margins were in jeopardy due to increasing operating expenses.
- Unnecessary expenses resulted from inefficient processes.
- Outdated systems impeded efforts to save costs.
We need a solution that can streamline our operations without compromising efficiency!
Solution
Working with Sophus, a prominent Consumer Goods Company, greatly improved the effectiveness of its DC network. We strategically optimized its supply chain infrastructure to better correspond with market conditions and customer needs.
This way, the firm leveraged its logistics partner’s countrywide parcel network and bettered its network performance.
Results
Utilizing the experience of our logistics provider and Sophus, we’ve achieved outstanding gains in our DTC system efficiency.
With Sophus’s help, the Consumer Goods firm was able to enhance operational efficiency and position itself for sustainable development and competitiveness in the ever-changing consumer market.
Some key achievements include:
- Optimal Network Strategy: The company’s DC sites and operations were fine-tuned to meet the demands of its target market due to the combined skills of both partners.
- Efforts to Lower Prices: Logistics expenses dropped by around 1% due to the team’s combined efforts. In addition, changes to the DC footprint and other long-term measures resulted in significant cost reductions of around 10%.
- Service Lead Time Improvements: With this new design implemented, the consumer experience is expected to be more streamlined and responsive, with gains ranging from 12% to 21%.
Sophus Technology can help you revolutionize your supply chain network and make it more efficient and innovative. We will help your business thrive in the ever-changing consumer industry.
Contact us if you are ready to take a revolutionary step toward better logistics and happier customers.
