Challenge

A US direct sales company needed to create an online ecommerce presence and expand their use of global pop-up storefronts. To fuel the expansion of their international retail business, they needed a fulfillment arm to help them succeed. But they lacked the kind of leadership in-house that would allow them to build an omnichannel retail organization and a global supply chain that can scale with their business. They looked to Point B for help.

The execution mindset

One of our Point B consultants came in as an interim operations leader to help the client create a retail organization. He dug into our client’s specific business goals and challenges, developed a model that would support their goals, and worked with other Point B service lines to drive a cross-functional, holistic approach to the business problem.

To support the physical retail business, Point B applied a three-step model of planning, store methods, and analytics to build out an enhanced ongoing approach. Combining lean processes, POS and product analysis, along with retail subject matter expertise they established a playbook and defined an organization to manage the retail presence as the company continues its rapid growth.

Point B also introduced new POS technology that facilitated new sales approaches and that are enabling positive sales trends. The new technology, coupled with new planning tools developed by Point B, give the client capability that will sustain their new organization.

Showing results

So far, our client has seen spend by transaction increase by 113 percent for key regional retail sites. In the larger national venues, spend per transaction has nearly doubled and contribution margin has increased by more than 80 percent. Customer feedback relative to the store experience has been positive, as well. 

On the fulfillment side, Point B has helped our client begin to implement standard supply-chain processes for SKU definition, packaging and label standards. We’ve also begun to define central inventory management processes and policies so that our client’s operations will be smooth and trouble-free.

And finally, Point B implemented the linchpin for sustained execution by researching and selecting a new global third-party logistics provider to meet their unique needs.