By: Maria Williams
Josh Delaney, Husband, Father of 2, marketing online since 2004, eCommerce Expert, Brand Builder, Inc 5000 Award Winner, Sold 5 Companies in 10 years to both private and public companies, “Milwaukee’s Most Notable Marketing Executive.”
Efficient logistics is the backbone of any direct-to-consumer (DTC) brand’s success. It’s not just about delivering products; it’s about enhancing customer satisfaction, minimizing costs, and streamlining operations. Here are strategies to improve logistics for your DTC brand.
1. Optimize Fulfillment
“Streamlining your fulfillment process can significantly reduce delivery times and costs. Consider automation tools and outsourcing options to improve efficiency. Make sure to use UPC codes, and QR codes if needed, and all the appropriate kitting needs met with your 3PL service or your own warehouse. Get all these things taken care of upfront so you can worry about selling more. Every penny counts and when it comes to shipping logistics, you can find every penny and work on it. Do just that.”
2. Inventory Management:
“Effective inventory management ensures that you have the right products in the right quantity at the right time. This minimizes stockouts and overstocking, reducing storage costs and improving cash flow. You should be managing inventory levels weekly and always knowing what you have just sold, what you’re going to sell next week, next month, and what sales and marketing campaigns are coming up so you best plan ahead for inventory going out the door and receiving new inventory in.”
3. Shipping Solutions
“Explore different shipping options to find the best balance between speed and cost. Offer customers various shipping choices to suit their needs and budget. Have these conversations with the shipping companies you’re interviewing and get all their prices up front so you can really know what they are charging for each and how you can build with it.”
4. Returns Management
“A clear and easy returns policy can enhance customer trust and loyalty. Streamline your returns process to make it as hassle-free as possible for both your team and your customers. Too many returns can cost your merchant processing account and maybe even your entire business.”
5. Leverage Data
“Use data analytics to monitor and improve your logistics. Analyzing shipping times, costs, and customer feedback can help identify areas for improvement. I’m a dashboard junkie because it helps me make executive decisions faster. I like seeing states and building around those. Work with what you got!”
When speaking on strategies he has found most effective in optimizing fulfillment for a DTC brand, Delaney states:
“Go to your warehouse and walk it, ask questions, and itemize every single price from receiving and where it lands to getting all the way to a customer. Everything it touches and every cost associated.”
Delaney goes on to discuss how to balance inventory management to avoid stockouts and overstocking:
“My Director of Operations knows she has permission to have 1-2 quarters of product on hand at all times if needed. A new company can order much less again to start.”
Delaney ends with the best practices he recommends for managing returns efficiently:
“You want to have a 99% success rate and 1% actually return. So depending on the product you will have to build a system where you stay below that 1% return mark and provide an incentive and program to customers that need it or help them find something else. In the supplement space, often I would just let the customer keep it and refund. All up to you and your product type, but you want to stay above 1% no matter what.”
Published by: Holy Minoza
