Supply Chain and Inventory
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Overview & Challenge(s):
Because DEMDACO operated on a strictly wholesale model for 20 years, the introduction of D2C selling caused breakdowns in the supply chain processes. Significant challenges included:
Inventory received in the warehouse was in case packs which do not support individual sales.
Existing supply chain systems were not updated to forecast consumer demands (smaller quantities).
Shipping options were maximized for bulk orders, making the pick and pack for consumers difficult.
Internal reporting was allocating sales for Target to the internal eCommerce consumer site, falsely inflating sell-through data, and leaving consumer channels stranded without inventory.
Inventory shortages caused by COVID magnified the situation, resulting in negative customer satisfaction and lowering NPS scores.
Goal(s): Validate concerns, present a POV for approval, ensure scalability of processes.
Strategy & Approach:
Led the project manager to conduct a deep dive analysis into all data sources (Oracle, PLM, BigCommerce, Cognos, Apex, Qualtrics).
Partnered with peer groups in Data Analytics, Supply Chain, Warehouse Operations, Marketplace Operations, Customer Service Operations, Finance, and Key/National Accounts to collaborate and adjust processes as needed.
To ensure accountability, we jointly recommended actions using data analytics and insights.
Updated systems and processes to support the unique inventory needs for D2C sales, payments, shipping and returns processing, and customer service.
Results:
Gained agreement for creating a new D2C category for inventory allocation purposes.
The Warehouse Operations Manager developed a solution to accommodate shipping single units to consumers vs. bulk orders to retailers.
The IT team adjusted the min/max levels for the consumer channels and implemented a real-time inventory feed to eCommerce sites to include the estimated back-in-stock dates.
We upgraded the supply chain platform, inventory thresholds, and mapping of inventory to appropriate lines of business.
The D2C channel saw an immediate increase in sales, generating a YoY increase of over 200% for two consecutive years.
NPS score increased by 25% and turnaround time (order to ship) decreased by 15%.
The average order value for both B2B and D2C increased by over 30%.
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