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Maximize Your DTC Retail Success and Achieve Greater Purchase Order Certainty

Maximize Your DTC Retail Success and Achieve Greater Purchase Order Certainty

Before Covid-19 upended society, the direct-to-consumer (DTC) market was experiencing a period of significant momentum. The number of brands launching in the space multiplied daily, as the lucrativeness of high-profit margins inspired new entrants. Interest from consumers was at an all-time high as they sought to take advantage of better pricing and product quality. 

In the past few years, however, severe supply chain challenges have threatened a regression. Specifically, DTC retailers’ struggles to gain visibility into their global supply chain, and to paint an accurate picture of their inventory needs, have had a dramatic impact on operations and profitability. For some, these disruptions have taken shape in the form of recurring supply shortages, resulting in missed sales opportunities, frustrated customers, and reputational damage. While for others, inefficient demand forecasting processes are making excess inventory a bigger threat, forcing them to deal with increasing holding costs. 

DTC retailers are struggling mightily to strike the right balance between supply and demand, and achieve purchase order certainty. But how exactly can they achieve this? It all starts with increasing supply chain visibility and transparency. 

Creating a more transparent supply chain

Global supply chains are intrinsically unpredictable. The reality is, they’ll always be at the beck and call of often unprecedented external factors, whether it be natural disasters or wars between nations. And while brands may not always be able to escape the wrath of these events, they can equip themselves to deal with them more confidently and with minimal damage. 

They just need clear visibility into their supply chain.

For larger companies, they often employ economists to help them achieve this, a team that dedicates its time to studying global trends, monitoring supply chain disruptions, and spotting potential backlogs. But we know not every brand has these resources. This means we need to find another way to predict and manage supply chain pressures, like demand, delivery times, transportation costs, and other challenges.

We’re proud to say that this is an issue we’ve addressed head-on through Anvyl and Flieber’s integration. 

DTC retailers can benefit from Flieber's advanced predictions of purchase order timing and inventory needs, and then automatically push those related purchase orders to Anvyl for purchase order management and visibility for the retailer. 

To simplify what this means for purchase order certainty: when DTC brands have access to advanced data analytics to predict things like inventory issues or future product demand, it injects that much-needed dose of predictability into their purchase order process

This, in turn, helps them operate with a high level of assurance that they’ve ordered the right amount of product to meet consumer demand.

Building supplier confidence

It is also key to think about the impact that this has on supplier relationships and confidence in a supplier’s ability to fulfill orders as per the terms of an agreement. Something that, unfortunately, has not been the case for many brands. 

In fact, when Anvyl surveyed 400+ SMB owners and C-suite level executives across industries, 56% said they’ve had to change suppliers within the past year, with “consistent delays” being a primary reason why.

For DTC brands to achieve purchase order certainty, they must prioritize great supplier relationships. First and foremost, strong relationships foster open and transparent communication channels between buyers and suppliers. This enables timely and accurate information exchange, ensuring that both parties are aligned on purchase order details, delivery timelines, and any potential challenges or changes. 

Good supplier relationships also promote trust and reliability. Suppliers who have a positive rapport with buyers may be more likely to prioritize their orders, maintain consistent product quality, and adhere to agreed-upon terms and conditions. This reliability significantly enhances purchase order certainty, reducing the likelihood of delays, errors, or disruptions.

And finally, strong supplier relationships promote collaboration and a shared commitment to success. Suppliers who feel valued are more inclined to work closely with buyers to address any issues that may arise, proactively find solutions, and provide exceptional customer service in the process. These collaborative efforts further contribute to purchase order certainty by ensuring that potential challenges are promptly addressed, and orders are fulfilled to meet the buyer's expectations.

Connecting your PO, supplier management, and delivery processes

DTC brands don’t have to make these optimizations alone. One positive to come from this rocky supply chain terrain is the emergence of innovative solutions that help retailers make smarter inventory and PO decisions. With an abundance of options to choose from, it’s imperative that you connect your tech stack to enhance data, visibility, and intelligence across all systems and teams.

We recommend connecting your PO, supplier management, and delivery processes. When these processes are integrated seamlessly, it allows for a streamlined and transparent flow of information throughout the procurement cycle. 

The Anvyl/Flieber integration enhances purchase order certainty by providing end-to-end visibility and control of the supply chain, from PO issuance through to delivery to the warehouse. With complete visibility in real-time, brands navigate and manage their supply chain and related inventories with unprecedented clarity and effectiveness, ultimately enabling them to meet cash flow targets and customer needs.

About Anvyl

Anvyl connects global supply chain teams, systems and suppliers to improve collaboration and decision-making from PO issuance through to warehouse delivery. The tool facilitates real-time collaboration, automates key tasks and processes, and empowers teams with deeper insights that allow them to make smarter decisions, faster.

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