Insights

3 Ways We Create Value Through the Supply Chain

3WaysSupplyChain

The supply chain has historically been viewed as a cost center. The process of moving products from A (supplier/manufacturer) to B (warehouse) to C (customers), and all the touch points along the way, add up. It consumes resources, time, and materials, all of which have a price tag. From an operations standpoint, the typical goal is to eliminate as many non-value-added steps as possible, while increasing efficiency and decreasing costs. In an ideal world, we’d be able to teleport products from A to C instantaneously without them touching human hands. It’d be faster, more environmentally friendly (unless the teleportation machine runs on gas or coal), and more efficient (i.e. margins for error would be eliminated). Until that is possible, we’ve chosen a different approach to managing supply chain logistics.

Most supply chain managers focus on eliminating waste. Netrush starts with a different perspective: how can we add value in these traditionally non-value-added steps?

The Amazon marketplace is a platform that grants access to millions of shoppers, domestically and globally. The logistics of such a platform necessitate a supply chain strategy in order to meet demand. For every touch point involved in the shipment process, we try to add value to the brand and customers in the following ways:

FFP (FRUSTRATION-FREE PACKAGING)

Nielson conducted a global study that showed more than 50% of consumers across 60 countries were willing to pay more for products and services from companies “that are committed to positive social and environmental impact.” Managing a sustainable, environmentally friendly packaging program is an investment (of time, resources, etc.), but the value it brings is worth it: to the environment, to your customers, and to yourself.

We offer products in Frustration-Free Packaging, Amazon’s 100% recyclable, easy-to-open option that comes without excess materials. Traditionally, product packaging was designed to stand out on store shelves rather than make it easy for the postal service to ship to consumers, and this approach created waste. Lots and lots of waste. FFP doesn’t erase the footprint a supply chain creates, but it’s a start.

Our latest box was designed to eliminate waste and engage customers.

  • This box is made from no less than 76.6% of post-consumer material.
  • The average box can be recycled seven times.
  • In the US, 90% of all products are shipped in recyclable corrugated boxes. (That’s billions and billions of boxes.)
  • We also bundle items into one box where possible.

CUSTOMER ENGAGEMENT

Packaging is an opportunity to give your customers an experience within an experience. Remember how exciting it was to get a package in the mail when you were a kid? We want to recapture that! By offering brands the opportunity to personalize a box with branded messaging, including inserts (with branded promos, samples, and other marketing material), the customer’s buying journey doesn’t end once they’ve received the product. The purpose is to create customers, generate demand for upcoming products, and promote brand awareness.

ONE PIECE FLOW

One Piece Flow (OPF) is Netrush’s in-house software solution (built on the Salesforce platform) that drives our processing. In a nutshell, it allows us to receive a purchase order in our system, scan it, automatically create a shipping plan to its destination, and then package the product in one movement. Essentially, it allows us to automate the seller process. All this is done electronically, eliminating costly and wasteful paper trails.

There’s a philosophy to OPF: Small, small, small, small batch sizes, with the ultimate small batch size being one. There’s great benefit from a quality perspective and a productivity perspective. It has taken numerous steps out of a long process and more accurately receives and ships inventory. It makes us faster, more accurate, and less costly than traditional approaches.