A recent industry report demonstrates that direct-to-consumer is on the rise in North America, with 66% of businesses increasing their DTC spending since the pandemic began. 35% of respondents stated that their investments had significantly increased.
DTC enables brands to expand their reach and strengthen their connections with customers through personalized offerings and environmentally friendly practices with well-established retail and wholesale models.
New technologies for new trends
In order to succeed with DTC, businesses need to investigate the inventory management technologies and Warehouse Management Systems that form the basis for this new model.
Omnichannel brands can no longer compete in new and unfamiliar markets with out-of-date systems as technology and trends change.
Visibility of inventory
Uncertainty is a part of running a business. To defeat it, innovative strategies and technologies that were not previously available will be required.
When it comes to fulfilling orders, regardless of where or how they are placed, outdated inventory management software has largely rendered brands powerless.
When DTC is used, the quantities of available inventory become extremely hazy. Even the straightforward new idea of shipping single items rather than pallets presents new challenges for satisfying DTC demand.
Thus, in 2023, organizations that progress forward with the DTC way should rework their story: valuing visibility over inventory management.
Solutions for DTC order fulfillment
The most up-to-date DTC order fulfillment solutions that provide continuous inventory visibility are the best way for brands to anticipate their DTC markets and get a reasonable picture of stock.
Survey respondents (42 percent of the sample in Europe and 36 percent of the sample in North America) identified investing in order management and fulfillment technology as the primary strategy when asked how their company best protects itself against failing to meet customer expectations with DTC.
These arrangements place continuous visibility at the forefront, making it possible for crammed teams to quickly determine the best inventory for their entire organization. They are able to accomplish this without significantly overstocking and without failing to fulfill customer orders in channels where there is no inventory.
By bringing three essential distinctions to the retail supply network, order fulfillment solutions for DTC improve omnichannel inventory management processes in the following ways:
- Ability to adjust platforms in response to the opening or closing of new channels. Moreover, the capacity to incorporate cutting-edge selling platforms like e-commerce marketplaces that are integrated with supply chain applications for inventory planning and fulfillment.
- Integrations with third-party supply chains, continuous stock availability for all relevant devices, and automatic syncing a thorough understanding of the product and its supply sources, taking into account factors like location, timing, and local needs, among other things.
- A robust comprehension of the product and its supply sources, taking into account things like location, timing, local requirements, and so forth.
When it comes to DTC, retailers can meet demand regardless of where their inventory is located if they prioritize visibility.
Consequently, they can increase their network’s responsiveness and reach with the same inventory investment.
Dermalogica serves as an excellent example. The need to combine multiple acquired brands into a single, effective DTC operation and further support the company’s existing relationships with professional and end-consumer customers drove Dermalogica’s search for a new logistics and fulfillment strategy.
According to Jason Brown, Director of Logistics at Unilever Dermalogica, “Dermalogica went live on the Deposco platform in just 90 days. The ability to get innovation in place quickly to meet the evolving needs of our customers has allowed us to reduce risk, lean into growth, and see value faster.”
Businesses are able to offer a comprehensive plan that is both quick and effective every time to all of their franchises, retailers, and individual customers who make purchases from them because of this quick time-to-value.
Businesses now have complete inventory visibility as a result of the omnichannel retail order management solutions provided by Deposco. Users can take advantage of the expanding DTC market without jeopardizing their success in conventional supply chain channels.