Blog Posts How to Optimize Fulfillment for Digitally Native Vertical Brands


Digitally native vertical brands (DNVBs) are growing three times faster than the average ecommerce retailer, according to Internet Retailer. Focused intently on the customer experience, these brands are proving to be significantly more successful – and profitable.

Vertical integration, nimble supply chains and fast, low-cost delivery are key tenets of the DNVB business model. Saddle Creek’s new ebook explores the unique requirements of these dynamic brands and how third-party logistics providers are providing successful fulfillment solutions.

Following is an excerpt from “Effective Fulfillment for Digitally Native Vertical Brands”:

What capabilities are required to support a DNVB business model?

Delivering the customer experience that is the hallmark of a strong DNVB requires a number of critical fulfillment and logistics capabilities.

In-depth understanding of customers

DNVB’s “maniacal focus” on the customer experience is deeply rooted in customer relationship management. At a minimum, effective CRM software is necessary to compile and organize data in order to streamline and personalize communications with customers. It also helps to ease the fulfillment process by processing orders, storing shipping and tracking information, tracking inventory and reporting.

Real-time visibility

Consumers expect information to be readily available regarding product availability, order status, delivery tracking, etc. DNVBs need robust technology solutions to optimize inventory management, order management, order routing, etc. Order management systems (OMS) and warehouse management systems (WMS) help to put the necessary details at customers’ fingertips.

Efficient order cycle time

“The world doesn’t care about your digitally native vertical brand if you aren’t delivering a better product and service bundle than traditional competition,” explains Bonobos founder and CEO Andy Dunn who coined the DNVB term. To ensure outstanding service, brands must continually seek to optimize fulfillment processes to minimize order turnaround time. Fulfillment automation and material handling solutions can help to increase efficiency.

Scalability

Strong DNVBs often experience exponential growth in a relatively short timeframe. A nimble supply chain, flexible space and staffing, and scalable technology help to sustain high standards for customer experience while accommodating growth.

“Most (DNVB) founders have a strong industry background, and they can advance a company to first base. The difference between first base and a business that hits a home run is how you scale your reach and operations with technology in order to improve the customer experience,” explains Forbes Technology Council contributor Antonio Altamirano.

To learn about other critical capabilities and how 3PLs are adding value for DNVBs, read the ebook.