As manufacturers have embraced digital technologies, the ability to meet mass customization desires in particular has driven them to consider embracing need go-to-market strategies including a direct-to-consumer (D2C) approach.
As a prime example, the apparel giant Nike has recently announced plans to stop selling to wholesale partners including DSW, Urban Outfitters, Shoe Show, Dunham’s Sports, Olympia Sports, and Big Five. With massive supply chain upsets, such as the Suez Canal blockage or the ongoing risk of ransomware attacks on supply chain companies, how can Nike ensure that D2C product deliveries and customer experiences are not compromised now that the company is managing it’s own source-to-consumer supply lines?While D2C retail strategies remove the complexity of multi-layer supply chains and increase manufacturers’ profits, companies that are new to D2C will need to be strategically proactive in their planning to ensure they don’t sacrifice their brand reputation or customer experiences (CX). Product delivery delays, product shortages, lost or unfulfilled orders, and product safety will soon be the full responsibility of the manufacturer.
In this IW Members Only video chat, Cleo’s Frank Kenney discusses the challenges of making this jump.