Revamping Supply Chain Planning for a Direct-to-Consumer E-commerce Retailer
Technology Category
- Functional Applications - Inventory Management Systems
- Platform as a Service (PaaS) - Application Development Platforms
Applicable Industries
- Consumer Goods
- E-Commerce
Applicable Functions
- Sales & Marketing
- Warehouse & Inventory Management
Use Cases
- Digital Twin
- Inventory Management
Services
- System Integration
About The Customer
The customer in this case study is a direct-to-consumer e-commerce retailer that operates numerous micro-fulfillment centers across the US. The retailer ships thousands of products directly to consumers' doors within minutes. The company had been managing its business using internally developed shared spreadsheets, but as the company grew, this approach was creating silos and limiting collaboration across functions. The retailer recognized the need for a platform that could scale its supply chain planning capabilities to support its growth and improve efficiency.
The Challenge
The case study revolves around a direct-to-consumer e-commerce retailer that operates numerous micro-fulfillment centers across the US. The retailer had been managing its business using internally developed shared spreadsheets. However, as the company expanded, it became clear that this approach was creating silos and limiting cross-functional collaboration. The retailer recognized that to continue its growth trajectory, it needed a platform that could scale its supply chain planning capabilities. The company faced challenges with immature planning processes, order fulfillment, and long-range business planning. The use of shared spreadsheets across the business led to a lack of collaboration and business silos. The company needed the right assortment of products at the right time and location for their micro-fulfillment centers to meet local consumer demands. Furthermore, the company was running their business planning processes at monthly intervals, which was not sufficient for their growing needs.
The Solution
The company decided to leverage the capabilities of the o9 platform to integrate various planning functions across the organization, thereby increasing collaboration, visibility, and efficiency. The o9 platform's digital twin was used to optimize replenishment plans and its assortment planning capabilities were utilized to create hyper-localized assortments to boost sales and customer satisfaction. The company also used o9's processes to develop a forward-looking view of demand, allowing them to be more deliberate in creating future-focused goals and strategies. Key functionalities implemented included replenishment planning, demand planning, assortment planning, and merchandise financial planning. The internally built solution that the company was previously using was replaced with the o9 platform. The o9 platform was chosen for its ability to work in partnership with the company to develop creative solutions, its ability to develop a custom implementation timeline, and its open architecture, flexibility, and agile platform.
Operational Impact
Quantitative Benefit
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