One example of the brainstorming and collaboration of the leadership team was to address how we could leverage our capabilities and grow additional top line revenue while utilizing our efficient systems, IT and Distribution operations and expand our service offerings to customers.
Through the collaboration of the Leadership Team, the idea originated of providing direct shipment of product from our DC directly to our retail customer’s customer, therefore, the direct to consumer ‘Drop Ship’ idea was born. We worked together to develop the plan and the systems capability within our highly and what we considered ‘best in class’ IT department.
In order to make this cost effective for the company and the customer, a system had to be developed that would allow our customer to place images of our product on their websites, have their customer order via their website, then process the order electronically into our systems and out to the DC picking line with minimal human intervention. Upon picking and packing of the item in the highly efficient DC operations, the order was shipped direct to the customer’s customer and billed to our customer. This new transparent service offering for shipment direct from a wholesaler to the end consumer was the first of its kind in the wholesale décor industry at that time and generated a significant amount of new and profitable revenue.
This service was revolutionary in that it allowed retailers to offer a much broader selection and variety of product on their website without inventory risk, working capital investment and the time and resources to unpack and display product in their store.
The ‘Drop Ship’ program provides a very cost effective way for retailers to expand their selection and offering with little to no future risk of markdowns.