Introduction

Products are most valuable to both the supplier and reseller when they are positioned closest to the customers who want them. Forecasting models identify demand, but it is the effectiveness of the supply chain that optimally positions products for effective final-mile delivery.

When ordering online, customers are highly influenced by product availability and delivery options. Even if the options are satisfactory, changes in expectation after a purchase can impact how customers feel about their experience. In order to provide accurate availability and delivery information, we need visibility across the entire supply chain. This visibility allows us to make key logistical decisions and proactively keep our customers informed, setting realistic expectations.

Challenge

We have a blindspot in our supply chain because we do not provide ocean freight services. As a result, our suppliers need to use third-party ocean carriers to move their product from port to port. Not only does this limit access to shipping information, it complicates logistics for our suppliers and hinders their communication with us and inevitably our customers.

This blindspot also limits our ability to proactively optimize inventory in the event of an issue. For example, weather conditions can delay and/or alter ocean routes. Without timely access to this information, customers are left frustrated because they are not notified that their items are going to be delayed until it is too late. This negatively impacts their trust and future purchases.

If we receive weather information in a timely manner, we can proactively reposition inventory within our warehouse and delivery network, and provide a better experience for our customers by sending out early notifications to set expectations.