The B2C retail market is rapidly evolving, driven primarily by the rise of online channels. E-commerce platforms have swiftly gained ground, leveraging convenience to encroach on traditional offline distribution. Today, not only pure-play e-commerce firms but also established retailers and B2C manufacturers are launching or preparing their own online platforms. Yet, in times of intense transformation, the fundamentals must be sound. Even the most competitive e-commerce platform will crumble without strong product competitiveness. Only when the product lineup aligns with consumer needs—supported by cost and delivery advantages—will an e-commerce platform truly shine.
This project involved a market-leading client in the remodeling and home furnishing segment, operating both brick-and-mortar stores and an online mall. Looxent focused on evaluating two key fundamentals of B2C retail: procurement competitiveness and inventory management.
Tailored Procurement Strategies by Category
Improving procurement competitiveness requires a differentiated approach for each product category. Our client sourced a wide variety of items—ranging from finished goods and semi-finished products to raw materials, standardized mass-produced SKUs, small-batch multiple-SKU segments, and non-standard items. Each category needed a tailored strategy.
For mass-produced, standardized SKUs, the priority is identifying more competitive new suppliers and employing more rigorous bidding processes to secure favorable terms. In contrast, for non-standard or small-batch items with fewer sourcing alternatives, solutions might include optimizing specifications, introducing customer-supplied raw materials, or reducing the number of SKUs to improve production efficiency. Additionally, we considered both domestic and global suppliers. Despite a challenging currency environment, we explored an extensive global supplier base and found unexpected high-quality, cost-effective options, thanks to varying economic conditions in different countries.
Integrating Sales Forecasts and Ordering for Effective Inventory Management
Just as procurement complexity increases with diverse product categories, inventory management also becomes more intricate. During volatile periods like the COVID-19 pandemic—when sales forecasts shift rapidly and supply disruptions occur—precise, agile inventory control is essential. Sudden sales declines can cause excess inventory, while surging demand or supply delays can result in prolonged stockouts.
To prevent these issues, we re-examined the integration of sales forecasting, ordering criteria, and contingency response mechanisms. We established balanced guidelines and operational frameworks to avoid overly conservative approaches that create phantom stockouts or overly aggressive strategies that hamper timely delivery. Our goal was to ensure a smooth, flexible system that quickly adapts to market changes without sacrificing customer experience or revenue opportunities.
Building Lasting Competitive Advantage
Procurement strength and inventory management form the core capabilities of any retailer—offline or online. Channel competitiveness is crucial, but long-term success hinges on establishing robust procurement fundamentals and systematic inventory control. By implementing product-specific procurement strategies and ensuring seamless coordination between sales forecasts and ordering, retailers can deliver a lasting, high-quality customer experience. These fundamental elements are non-negotiable for sustained success in a rapidly evolving B2C environment.
The B2C retail market is rapidly evolving, driven primarily by the rise of online channels. E-commerce platforms have swiftly gained ground, leveraging convenience to encroach on traditional offline distribution. Today, not only pure-play e-commerce firms but also established retailers and B2C manufacturers are launching or preparing their own online platforms. Yet, in times of intense transformation, the fundamentals must be sound. Even the most competitive e-commerce platform will crumble without strong product competitiveness. Only when the product lineup aligns with consumer needs—supported by cost and delivery advantages—will an e-commerce platform truly shine.
This project involved a market-leading client in the remodeling and home furnishing segment, operating both brick-and-mortar stores and an online mall. Looxent focused on evaluating two key fundamentals of B2C retail: procurement competitiveness and inventory management.
Tailored Procurement Strategies by Category
Improving procurement competitiveness requires a differentiated approach for each product category. Our client sourced a wide variety of items—ranging from finished goods and semi-finished products to raw materials, standardized mass-produced SKUs, small-batch multiple-SKU segments, and non-standard items. Each category needed a tailored strategy.
For mass-produced, standardized SKUs, the priority is identifying more competitive new suppliers and employing more rigorous bidding processes to secure favorable terms. In contrast, for non-standard or small-batch items with fewer sourcing alternatives, solutions might include optimizing specifications, introducing customer-supplied raw materials, or reducing the number of SKUs to improve production efficiency. Additionally, we considered both domestic and global suppliers. Despite a challenging currency environment, we explored an extensive global supplier base and found unexpected high-quality, cost-effective options, thanks to varying economic conditions in different countries.
Integrating Sales Forecasts and Ordering for Effective Inventory Management
Just as procurement complexity increases with diverse product categories, inventory management also becomes more intricate. During volatile periods like the COVID-19 pandemic—when sales forecasts shift rapidly and supply disruptions occur—precise, agile inventory control is essential. Sudden sales declines can cause excess inventory, while surging demand or supply delays can result in prolonged stockouts.
To prevent these issues, we re-examined the integration of sales forecasting, ordering criteria, and contingency response mechanisms. We established balanced guidelines and operational frameworks to avoid overly conservative approaches that create phantom stockouts or overly aggressive strategies that hamper timely delivery. Our goal was to ensure a smooth, flexible system that quickly adapts to market changes without sacrificing customer experience or revenue opportunities.
Building Lasting Competitive Advantage
Procurement strength and inventory management form the core capabilities of any retailer—offline or online. Channel competitiveness is crucial, but long-term success hinges on establishing robust procurement fundamentals and systematic inventory control. By implementing product-specific procurement strategies and ensuring seamless coordination between sales forecasts and ordering, retailers can deliver a lasting, high-quality customer experience. These fundamental elements are non-negotiable for sustained success in a rapidly evolving B2C environment.