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Ecommerce Supply Chain Optimization to Meet Consumer Demand
Brand
Braun (P&G)
Category
Personal Care Appliances
Summary
A global brand struggling to make a mark in a local market. Basis in-depth category and consumer research, we proposed a strategic shift and executed a 360 degree e-commerce marketing strategy to build Brand salience and scale operations.
Service
Amazon Strategy & Growth
Amazon Marketing Services
Social Media Marketing
The COVID-19 pandemic significantly altered consumer behavior, leading to an increased demand for at-home grooming products. Philips, a renowned brand, faced a unique challenge when the demand for Men's Trimmers and Clippers surged to six times the normal volume. The sudden and unforeseen spike in demand resulted in frequent out-of-stock situations, leading to substantial sales losses.
INSIGHT:
In the face of this unprecedented challenge, the following key insights emerged:
Changing Consumer Behavior: The pandemic forced consumers to adapt to at-home grooming, driving the demand for grooming products.
Demand Volatility: The surge in demand for Men's Trimmers and Clippers was unpredictable and challenging to anticipate.
Consumer Trust: Ensuring availability and timely delivery of products was critical for maintaining and strengthening consumer trust.
TASKS:
We collaborated with e-commerce partners to executed a multifaceted strategy for Philips that yielded remarkable results:
1. Demand Forecasting: We analyzed traffic trends and regional data to create accurate demand forecasts. This enabled Philips to anticipate demand spikes and align its supply chain accordingly.
2. Amazon Partnership: Philips collaborated closely with Amazon to implement Inter-Warehouse Transfers (IXD) at a reduced rate against exclusive ASINs given to Amazon. This strategy allowed for the swift transfer of products between Amazon warehouses, optimizing stock availability.
3. Educational Content Creation: In addition to addressing supply chain challenges, we also co-created educational content for Philips products designed to guide consumers on the correct usage of grooming appliances. This content was published on e-commerce platforms, helping consumers maximize the utility of their purchases and reducing the likelihood of returns.
RESULT:
The strategic approach implemented for Philips resulted in significant positive outcomes. Philips successfully met the surging demand for Men's Trimmers and Clippers by optimizing supply chain logistics with Amazon's IXD services. This not only prevented sales losses but also enhanced brand trust. The timely availability of products and enhanced consumer trust translated into increased revenue, demonstrating the value of agile supply chain management. The educational content not only reduced product returns but also established Philips as a brand committed to customer support and satisfaction. Leveraging IXD for inter-warehouse transfers contributed to a more sustainable supply chain approach, reducing unnecessary transportation and associated environmental impact which was valued a lot in the face of the Pandemic.
In conclusion, Philips' ability to navigate the unprecedented demand surge during the COVID-19 pandemic through strategic demand forecasting, collaboration with partners like Amazon, and the creation of educational content exemplifies the brand's resilience and commitment to customer satisfaction. This case study underscores the importance of agile supply chain management in addressing unforeseen challenges and maintaining brand trust during volatile market conditions.
