Retail in India is booming. The Indian retail business is expected to grow to $1 trillion by 2025, up from $750 billion in 2020. As the pandemic has accelerated the use of digital channels for shopping by Indian customers, direct-to-consumer (D2C) brands have grown tremendously.
In direct-to-consumer marketing, corporates can create their products and sell them directly to consumers by eliminating other intermediaries. They can be e-commerce platforms, retail stores, or social media businesses. The purpose is to remove resellers and retail stores from the process before the final consumer.
Why the D2C bandwagon?
- Profitability: By removing intermediaries, brands can lower distribution costs and have more control over profit margins. Also, it offers a better value proposition to consumers.
- Personalization: The brand retains control of the customer relationship, allowing it to manage the entire experience chain, from the website to the product delivery.
- Data Control: A high-quality customer connection necessitates real-time access to all data. To understand their customers’ preferences, patterns, trends, and demands must be identified.
D2C brands have to invest significantly in the fulfilment experience to deliver an acceptable offering for the consumer, especially when the consumer is used to an Amazon / Flipkart kind of fulfilment experience. Their fulfilment is complex and predictability of the supply chain can be tricky unless the D2C brands invest in the right systems and processes.
Thanks to technological advancements so these issues can be easily resolved.
Order Management Systems
When selling direct-to-consumer (D2C) products, a brand must invest in order management solutions. It offers benefits such as
- Maintain a centralised database of inventory spread across all locations
- Provide complete visibility of stock movement
- Allow for faster order processing by integrating all sales channels into a single platform.
Implementation of Warehouse Management System (WMS)
For smooth supply chain operations, a direct-to-consumer(D2C) business needs warehouse management software so that assists in
- Error-free barcode label driven and scan-based operations
- Optimize order picking & shipping for faster dispatches
- Provide real-time information on the inventory
Return Management Solutions
Returns are an integral part of e-commerce. Customers are more likely to shop with a retailer that offers a simple returns process. To increase productivity, D2C brands should invest in a return management solution that offers the following benefits:
- Create a return manifest to track shipments
- Quick return processing and capturing codes for further analysis
- Ensure quick re-listing for sales
Warehouse management in D2C businesses
A D2C business requires warehouse management software because it assists in acquiring goods and placing them on the appropriate shelf. They require WMS to enhance order picking & shipping and provide real-time inventory information as well. It can also be integrated with your existing ERP system. Here are a few tips for effectively managing your warehouse:
Keep your warehouse organized
An organized warehouse ensures smooth warehouse operations for your business. So, adhere to the following points to manage your warehouse:
- Place frequently selling items at an accessible spot
- Track products using barcodes and labels.
- Use a shelf system to make the most of your warehouse’s vertical space.
- Use the FIFO and FEFO methods.
Maintaining product stock levels to ensure that you never run out of products. And, it should have the appropriate stock positions across multiple warehouses aligned with geographical demand and forecasting.
You can also analyse sales of products based on seasons, months, and other parameters by marking out the minimum and maximum stock for each product in your warehouses.
Forecasting & cycle analysis
You should improve the forecasting and cycle analysis. The best benefit of improving product forecasting and performance cycle track is that there will never be a shortage or overflow of items. You’ll know when to restock and how much to reorder with smart data management. So, you can maintain optimal availability and inventory levels.
Invest in warehouse technologies that automate and improve inventory management. It further improves the forecasting of product flow. Because of an effective warehouse management system, you can prepare for holiday seasons well ahead of time.
By monitoring the process and looking for inefficiencies, you can improve the efficiency of your warehouse storage space. Meanwhile, ensure the maximum utilization of space. Warehouse optimization enhances accuracy, on-time delivery and the healthier bottom line.
Pyrops WMS processes orders from all platforms in real-time. It allows inventory to be handled effectively and assures error-free & timely product deliveries. As a result, it provides a better customer experience and builds a solid relationship with customers.