We are living in an age of constant change.
Consumer tastes, trends and behaviors are frequently shifting.
DTC is the response to that constant change – it’s an opportunity to understand consumers better, the channels they buy from and experiment with pricing and marketing discounts. All of which capture valuable data for your demand signal repository which should feed through to your supply chain and manufacturing.
But it isn't easy…
Internal processes are not set up for the DTC business model
The problem for brands is that their internal processes are not set up for the DTC business model. The whole supply chain, from the way they forecast demand, manage their inventories and logistics to fulfill demand is built around volume – in other words “how many pallets am I selling?”
DTC is such a different way of selling that it impacts the complexity of planning and logistics, and if brands can’t fulfill consumer demand they face a real risk to brand reputation and losing consumers to their competitors.
How we can help
For many organizations in the consumer space, their existing supply chain can cause challenges when it comes to DTC. Some common issues include…
Capturing and fulfilling demand
Managing inventory by channel throughout the network
Optimizing distribution requirements planning (DRP) and logistics
Customer segmentation and personalization
Customer acquisition costs vs. lifetime value
Minimum order quantity thresholds
Leading to the million dollar question(s)
How can I avoid being out of stock?
When do I buy more?
How much stock should I hold?
Meet Peak's Inventory Optimization solution
The answers can be found in our short Inventory Optimization demo. Get a look under the hood at Peak’s Decision Intelligence platform in action and see how it could benefit your business.