MultiChannel Merchant just published an article by Perry Belcastro, Saddle Creek’s vice president of fulfillment. The article, entitled “How to Use the Subscription Model to Gain Competitive Advantage,” explores four common challenges faced by subscription companies and offers suggestions for addressing them. Following is an excerpt . . .
Accommodating Unpredictable and Inconsistent Volume
Subscription box companies often experience explosive growth. Plan ahead, so you’re prepared to receive and store the influx of products. With little historical sales data, predicting demand from month to month can be challenging, but careful analysis of sales data can help you identify trends and determine how much space is needed.
Subscription companies typically have periods of intense volume due to their monthly (or quarterly) delivery cycle. They might ship a million orders one week and just a fraction of that the next. To accommodate these dramatic peaks and valleys, you’ll want to secure flexible space for storing inventory and sufficient labor for fulfilling orders.
Want to learn how to stay on top of technology, control the cost and timing of deliveries, and allow for expansion? Read the article.