A recent report from the industry confirms the rise of direct-to-consumer in North America, showing that 66% of businesses have increased their DTC spending since the pandemic began. 35% of respondents reported a significant increase in their investments.
Through well-established retail and wholesale models, DTC enables brands to expand their reach and strengthen their connections with customers through personalised offerings and environmentally friendly practices.
New technologies for new trends
Businesses must investigate the inventory management technologies and WMS (warehouse management systems) that serve as the foundation for this new model in order to win with DTC.
As technology and trends evolve, omnichannel brands can no longer compete in new and unfamiliar markets using out-of-date systems.
Inventory visibility
Uncertainty is a component of business ownership. It will require novel tactics and technologies that were not previously available to defeat it.
Brands have been largely rendered powerless by out-of-date inventory management software when it comes to being able to fulfill orders, regardless of where they are placed or how they are placed.
The quantities of available inventory become extremely hazy when DTC is used. For meeting DTC demand, even the straightforward new concept of shipping single items rather than pallets presents new obstacles.
As a result, in 2023, businesses that continue on the DTC path will have to rewrite their story: putting visibility over management of the inventory.
Solutions for DTC order fulfillment
Up-to-date solutions for DTC order fulfillment that offer continuous inventory visibility are the best way for brands to get a reasonable picture of stock and anticipate their DTC markets.
When asked how their company best protects itself against failing to meet customer expectations with DTC, 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.
Continuous visibility is at the forefront of these arrangements, allowing busy teams to quickly identify the best inventory across their entire organization. In channels where there is no inventory, they are able to accomplish this without significantly overstocking and without failing to fulfill customer orders.
Order fulfillment solutions for DTC improve omnichannel inventory management processes in the following ways, by bringing three essential distinctions to the retail supply network:
1. Ability to adjust platforms because of the launch of new channels or the closing of existing ones. In addition, the capacity to incorporate brand-new selling platforms such as e-commerce marketplaces that are integrated with applications for inventory planning and fulfillment in the supply chain.
2. Automatic syncing, continuous stock availability to all relevant devices, and integrations with third-party supply chains
3. 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, putting visibility first puts retailers in a good position to meet demand, regardless of where their inventory is located.
As a result, they can increase the responsiveness and reach of their network for the same inventory investment.
Dermalogica is a great illustration. Dermalogica’s search for a new logistics and fulfillment strategy was driven by the need to combine multiple acquired brands into a single, efficient DTC operation and further support the company’s existing relationships with professional and end-consumer customers.
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.”
Because of this quick time-to-value, businesses are able to provide 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.
Thanks to Deposco’s omnichannel supply chain fulfillment solutions, businesses now have complete inventory visibility. As a result, users can profit from the expanding DTC market without jeopardizing their success in traditional supply chain channels.