Supply Chain Gears-up for Challenging Peak Season

More than four out of ten (41%) of European supply chain executives expect this year’s peak retail season to be more challenging than that of 2022, with only 18% believing it will be less difficult. That’s according to a recent survey led by Deposco of 200 supply chain leaders working for European retailers, manufacturers, wholesalers, or 3PL/4PL firms.

The relative impact of peak season is growing too, with Amazon Prime Day now considered a peak event by 62% of respondents. Among the key challenges faced during this period, more than half (52%) of respondents pinpoint the management of costs among their top priorities. Linked to this, 35% of the sample rank ‘escalating pricing’ among their top three concerns entering peak season this year, making it the top concern overall.

Will Lovatt, General Manager and Vice President Deposco Europe says: “The focus on value is no surprise in an unpredictable economy where costs for labour, materials, and services are higher. Amid these price hikes and inflation, it costs more to get work done, so supply chain executives have their eyes on expenses.”

Concerns about costs are exacerbated by the wider macro-economic picture. For 40% of respondents, inflation is the national/global issue of most concern, even when compared to factors like political instability, upcoming elections, and seaport delays.

As a result, leaders expect far-reaching inflation impacts. 52% anticipate higher costs for supplies and services, 40% expect reduced consumer demand due to the cost-of-living crisis and 26% are predicting longer lead times.

The drive towards sustainable logistics is another key challenge identified by respondents, with 33% stating that improving sustainability is among their top priorities for peak season 2023.

“All these factors are driving market complexity and uncertainty,” adds Lovatt. “In general, operators understand and accept this but they are also eager to attack it more proactively. Experiences in recent years have created a thirst for solutions that simplify these uncertainties and provide resilience in coping with current realities. We are seeing a growing demand for technology to address these challenges from demand forecasting through to the latest warehouse management system and order management system solutions.”

Key topics of the report – now available here – include:
Managing labour and costs; Inflation and the cost-of-living crisis; Sustainable logistics; Technology priorities.

Bathroom Retailer Opts for Fulfilment Solution

Deposco, the omnichannel fulfilment supply chain solutions platform for brand owners, retailers, ecommerce, and 3PL companies, has signed Easy Bathrooms as a new customer.

Easy Bathrooms is on a steep growth path in the UK. With 135 stores in action today and a further 65 set to open soon, the company needed a fulfilment solution that could keep up with its plans for rapid expansion. Deposco’s end-to-end omnichannel planning and fulfilment solution was the perfect fit.

The Deposco solution will help Easy Bathrooms manage its 350,000 square foot warehouse more efficiently, provide an accurate, real-time view of inventory to quickly satisfy customer orders, and remove a raft of manual processes across the business.

“We chose to work with Deposco because they understand our business and demonstrated the knowledge to support our growth objectives,” said Craig Waddington, Founder and CEO of Easy Bathrooms. ”The Deposco solution will give us the control, visibility and accuracy we need to continue to deliver a great customer experience, through enabling our warehouse to operate more efficiently. This will free us to focus on growing the Easy Bathrooms retail footprint.”

The roll-out of the Deposco solution at Easy Bathrooms is set to be completed within a 90-day timeframe. Once fully implemented, the Deposco solution is expected to prove to be a vehicle to grow the business and make products available to customers at optimum price and availability levels.

Easy Bathrooms will initially deploy one element of the overall Deposco solution, its Warehouse Management System (WMS), ready for peak season trading later this year. Over the medium term, Easy Bathrooms and Deposco plan to work together to achieve complete visibility of inventory and generate management information across the operation before going on to drive further operational benefits.

Longer term, Easy Bathrooms is looking for the Deposco solution to help them assimilate new stores into their portfolio; expand their product range; and launch new channels to market to better serve new business opportunities.

Will Lovatt, Vice President and General Manager, Europe at Deposco said: “We are proud to be supporting Easy Bathrooms on their journey to becoming the UK’s premier bathroom retailer. Their energy and drive to deliver fabulous results are well matched to the culture at Deposco. We’re loving the opportunity to innovate together to fulfil orders for a greater number of new Easy Bathrooms customers as effectively as possible.”

Deposco’s Bright Suite of omnichannel fulfilment supply chain applications is how fast-growing companies rapidly scale their warehouse management and order management operations. So, they can see what inventory they’ve got, where it is, and where to position it to fulfill demand when It’s Grow Time™. It’s the only solution that provides this much actionable insight into both your supply chain and the broader marketplace. Streamlined into One Solution, One Focus, One Team.

End-to-end Omnichannel Planning & Fulfilment

Deposco, the omnichannel fulfilment supply chain solutions platform for brand owners, retailers, e-commerce, and 3PL companies, has launched the industry’s first true omnichannel supply chain solution to orchestrate the end-to-end processes – Plan, Source, Order, Fulfil, and Return – across B2B and DTC channels from a single package to full pallets.

In one cohesive Supply Chain Planning (SCP) and Fulfllment solution, businesses can replace inefficient manual processes with instant recommendations and automated workflows that remove the blinders between supply chain operations. The solution is designed to help customers lower their carrying costs, mitigate labour challenges, increase sales, and become more proactive and profitable in approaching inventory as one entity across all touchpoints.

“Creating value to fund growth in the volatile B2B and DTC markets has become a costly game that requires businesses to stock up, staff up, and delay growth initiatives due to processes and systems that can’t keep up,” said Bill Gibson, CEO of Deposco. “We are delighted to deliver a unified platform that feeds our customers with the information they need to put the right products at the right places at the right time and cost, rather than increasing inventory as a defensive response to ongoing changes and disruptions.”

Deposco’s Bright Suite omnichannel platform is the first of its kind to unite demand planning, supply planning, and order fulfilment through a single view of demand against real-time physical inventory execution everywhere. The platform is designed for B2B and DTC brands that need to scale growth and improve their omnichannel experiences but have not had the right tools to make timely, optimal decisions within the full context of their financial, operational, and service impacts.

Deposco’s singular omnichannel planning and fulfilment solution combines up-to-the-minute inventory data, automated demand planning insights, efficient operational workflows, and robust reporting across channels – with the flexibility to adapt and scale the technology going forward. Key benefits include:

• Coordinated decisions: Orchestrate the demand and supply end-to-end across planning and operations to respond to rapidly evolving changes, while improving cash-to-cash cycles and inventory acquisition/carrying costs.
• Improved Forecast Accuracy: Better product availability; efficient processes; and measurable forecast performance and improvements.
• Dynamically Optimised Inventory: Right inventory at the right locations, time-phased inventory investments, and automated safety stock policies to improve market agility, inventory turns, and GMROI.
• Automated Supply Planning: Efficient PO generation, real-time tracking of ASNs and receipts makes replenishment, buying, and supplier management fast and easy.

“By implementing Deposco’s supply chain planning solution into our fulfilment operations, we have seen significant improvements across our organisation,” said Bruce Bickford, Sr. Director of Supply Chain Management at RestorixHealth | AMT. “Now an end-to-end platform, the solution has transformed the way we operate. The implementation process was smooth, and Deposco has been a reliable partner for us.”
To learn more about the RestorixHealth | AMT end-to-end Deposco solution, please view the video case study here.

“No other partner offers this level of real-time inventory visibility (or actionable insights), cross-functional collaboration and efficiencies, and agile decision-making,” Gibson said. “The addition of SCP supports our mission of positioning businesses to scale current growth while establishing resiliency, increased profitability, and speed-to-value that can be used to fund future growth.”

Available now to existing Deposco customers as a bundle, SCP rounds out Deposco’s Bright Suite of cloud-based omnichannel fulfilment applications, which include Warehouse Management System (WMS), Order Management and DOM (Distributed Order Management) solutions that can be implemented with the industry’s fastest time-to-value.

Rise of Direct-to-Consumer in Europe

Nearly six out of ten European organisations (59%) across ecommerce, manufacturing, retail, transport and logistics supply chain, and wholesale say their investment in the Direct-to-Consumer (DTC) delivery model has increased since early 2020, with a total of 18% saying it has increased significantly. By increasing their investment, organisations believe they can improve profit margins, reduce cost, and service customers more effectively.

That’s according to a European Direct-to-Consumer research report by Deposco, a leading provider of omnichannel supply chain fulfilment solutions, polling decision-makers across the UK, Benelux and the Nordics, which points to a dynamic, fast-growing DTC sector.

However, organisations are also facing a range of barriers related to people and technology when it comes to achieving the DTC success they are seeking. These include, in the former category, lack of skilled staff, highlighted by 17% of the survey sample and culture of the company (16%), and in the latter, physical infrastructure (19%) and difficulties identifying the right infrastructure for DTC (16%).

Sustainability and Customer Experience are the key growth drivers of DTC in Europe

The latest technology is key in helping businesses protect themselves from failing to fulfil customer expectations when operating DTC. The survey reveals that many organisations are considering complete categories of products and even their whole range through DTC. Organisations must ensure that they are investing in people and technology and making sure that that their systems and processes are working at optimum efficiency levels. Putting money behind order management and fulfilment will be a key part of that.

42% of the survey sample highlighted investing more in order management and fulfilment technology as a key way of protecting themselves from failing to fulfil customer expectations when operating DTC while 29% referenced creating real-time visibility across all inventory locations.

Deposco’s complimentary report, The Rise of Direct-to-Consumer in Europe: How businesses can break through the barriers and make a success of DTC channels, is now available.

Direct-to-Consumer Evolves

A newly released report on the rise of Direct-to-Consumer (DTC) found that decision-makers across ecommerce, manufacturing, retail, transport and logistics supply chain, and wholesale businesses in North America find DTC channels key to unlocking better customer experiences and achieving higher profit margins.

The research, commissioned by Deposco, a leading provider of omnichannel supply chain fulfilment solutions, highlights these findings about the rise of Direct-to-Consumer models:

• When asked about key drivers for using DTC models over a third (36%) of respondents highlighted access to more customer data to drive business strategy and a further 31% referenced reduced costs
• Almost 9 out of 10 respondents (89%) have seen increased sales through DTC channels over the past 12 months

This report indicates a massive trend that DTC – which will contribute more than one-half of overall sales by 2026 – enhances the customers experience in tandem with ensuring profitability of organization as the biggest benefits of DTC. Further to this the report also reveals that sustainable practices are an emerging focus for DTC brands. Almost half (48%) of the sample say they have the capability to “easily combine separate orders for delivery at the same time”, an approach that reduces environmental emissions by bringing down the number of deliveries needed.

The focus on sustainability is also gathering ground across the wider supply chain, with 30% saying they are looking toward growing the proportion of stock sourced from nearshore suppliers. Long-term scalability and future success with DTC will require proactive moves toward enhanced efficiencies and operational savings. For example, investing in technologies that allow different retailers to collaborate on delivery runs, or incentivize consumers to go for a more sustainable option through a better price on consolidated orders, would benefit everyone.

Deposco’s complimentary report, ‘The Rise of Direct-to-Consumer in North America: How businesses can break through the barriers and make a success of DTC channels’, is now available.

Deposco’s Bright Suite of omnichannel fulfilment supply chain applications is how fast-growing companies rapidly scale their warehouse management and order management operations, so they can see what inventory they’ve got, where it is, and where to position it to fulfil demand when It’s Grow Time™. It’s the only solution that provides this much actionable insight into both your supply chain and the broader marketplace. Streamlined into One Solution, One Focus, One Team. That’s why over 3,000 of the world’s fastest-growing ecommerce and DTC businesses rely on Deposco. We’re supporting over $10 billion in sales and over 51 million consumer orders annually. Last year, we saw total shipment growth increase by 78%.

Subscribe

Get notified about New Episodes of our Podcast, New Magazine Issues and stay updated with our Weekly Newsletter.