Scaling B2B & D2C Supply Chains Simultaneously: How Standardized SOPs Boosted Order Fulfillment to 99.9% in the Wellness Sector

10: 00 | 28 July 2024

by Shreyash Jagdale

Warehouse supervisor overseeing B2B bulk pallet packing and D2C parcel staging in a modern fulfillment center.

Current wellness and self-care brands usually do not depend on one specific method. Many modern companies develop a hybrid approach according to the strategy of gaining the best possible outcomes: they process direct-to-customer (D2C) sales while utilizing numerous business-to-business (B2B) methods of distribution.

Although hybrid approaches allow companies to expand the business faster, they also mean that operational processes are complicated:

  • D2C requirements : high volume of orders, individual item picking and packing, determining the speed of 24- 48-hour delivery, and having package tracking.
  • B2B requirements : mass shipping, strict labeling, and using a master carton, following the rules of retail approval, and providing time for delivery.

If brands start increasing their B2B business orders dramatically (for example, from 80,000 to 115,000 units a month), it may lead to devastation of their operations. The problem lies in the fact that when B2B orders are processed, the warehouse is out of space and D2C orders can be shipped only after all B2B orders are completed.

The Strategic Blueprint: Standardizing Operations for Hybrid Excellence

Dual Purpose SOP Design for Inbound, Warehousing and Processing

One SOP cannot be applied to two distinct sales methods. Standard Operating Procedures (SOPs) need to be tailored according to regard to operational phases.

  • Split of Inbound and Storage : D2C rapidly selling SKUs are stored in lower-level pick bins close to packing areas, while B2B bulk inventory is stored in a high-level rack.
  • Separate picking/packing lanes : D2C order batching takes place via pick-to-light or wave picking system, while B2B orders are gathered with full case/pallet methods.
  • Regulatory compliance checklists : standard B2B packing procedures restrict penalties from suppliers for major retail distributors.

2. Inventory Control Based on Technology Principles

Managing hybrid commerce channels across different systems can lead to instances of inventory hoarding, which occurs when a B2B team unintentionally uses stock meant for active D2C orders. Unified supply chain technology systems such as Edgistify’s warehouse management technology combine order flows into a single inventory pool. This enables full visibility into bulk B2B orders as well as single e-commerce orders.

3. Intensive Process Retraining and Flexible Workforce Allocation

A flexible workforce necessitates organized training. Staff must be cross-trained so that they may shift smoothly from performing D2C order kitting in the morning to performing B2B bulk palletization during the afternoon.

The Operational Outcome: Superior Scalability and High Throughput

Adopting uniform hybrid operations leads to significant productivity gains and business expansion:

  • Increase of 43%s in B2B Volume : The total number of wholesale cargoes for a month increases from 80,000 to 115,000 units without any bottlenecks in operations.
  • Fulfillment Level of 99.9% : The overall rate of realization rises from 89% to nearly perfect in all sales channels.
  • Lower Logistics Cost : The combined stock control and cross-trained staff help to lower the cost-per-order in retail and D2C fulfillment.

Best Practices for Wellness Brands Scaling Omnichannel Logistics

1. Integrate Inventory Pools: Do not divide inventory into physical locations or B2B and D2C channels unless deemed necessary.

2. Standardize Kitting Processes: Develop visual SOPs at all packing stations to ensure that assembling speeds are maintained during demand surges.

3. Collaborate with Scalable 3PL Providers: Utilize logistics specialists capable of processing D2C parcel delivery and B2B shipping in a single location.

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FAQs

We know you have questions, we are here to help

Why do hybrid B2B and D2C supply chains often struggle with fulfillment bottlenecks?

Hybrid supply chains fail when they use uniform processes for distinct channels. B2B bulk orders hog warehouse space and labor, delaying speed-sensitive D2C parcel dispatches.

How do standardized SOPs improve fulfillment accuracy to 99.9%?

SOPs eliminate operational guesswork by creating clear, repeatable steps for inwarding, quality checks, pick-and-pack routing, and carrier handoffs, drastically reducing human error.

What is unified inventory management in omnichannel warehousing?

Unified inventory management tracks all stock in a central system, dynamically allocating SKUs across both e-commerce platforms and wholesale channels in real-time.

How does Edgistify support modern omnichannel supply chains?

Edgistify offers tech-driven 3PL fulfillment solutions, combining flexible multi-tenant warehousing with advanced automation to handle D2C parcel delivery and B2B bulk distribution seamlessly.