During Beauty Inc @20, Donny Salazar, founder and chief government officer of success know-how and providers firm MasonHub, hosted a workshop session geared toward serving to manufacturers improve conversions, margins and common order quantity by higher leveraging omnichannel success processes.
Salazar defined how his platform connects to e-commerce suppliers, and why manufacturers ought to think about a “scaling” technique concerning on-line promoting. He additionally provided insights into how the pandemic-driven on-line purchasing increase will be maximized by magnificence manufacturers this yr, and past. Salazar additionally defined what differentiates his workforce (and the know-how they developed) from others out there. (Hint: He is a veteran service provider who know properly the ache factors of direct promoting.)
“We help brands by focusing on scaling, which really means helping brands go into multiple channels,” Salazar defined. “It’s not just e-commerce and not just wholesale, but it’s across-the-board and requires handling their inventory management across all those unique and different channels.” That strategy relies on success know-how that options customization and testing capabilities in addition to clear stock views and totally managed returns.
Aside from utilizing success know-how to extend scale throughout channels, Salazar works with magnificence manufacturers to “bundle” merchandise. He gave the instance of a model with 35 or 40 inventory maintaining items, however was capable of bundle merchandise collectively in additional than 600 mixtures. The end result isn’t solely greater common order quantity, however lowered prices as a result of extra objects being shipped to a single shopper. For the client, the worth proposition makes it a simple promote.
“With bundling [technology], you can also put together product combinations that anticipate what your customers need,” he stated. “The other beauty of this technology is that you can make however many different combinations you want at any given time. And you can actually test what works best.”
Salazar mentioned the advantages of manufacturers drop-shipping stock by way of orders taken on-line from retailers equivalent to Sephora and Nordstrom, and even Amazon — all fulfilled by way of MasonHub.
Separate from the workshop, Salazar shared insights concerning the second half of the yr, and the challenges and alternatives going through manufacturers. Even as vaccines roll out, and masks mandates drop, there are provide chain disruptions that may probably proceed.
“One huge thing for the second half of 2021 is to continue to anticipate disruptions across the entire supply chain,” Salazar stated. “Because of the uncertainty brought forth by the pandemic, it’s hard for suppliers to forecast demand, and because of that, we have seen wild fluctuations in supply and production. There’s also been a bullwhip effect from the pandemic, where there are still production delays because it’s become increasingly difficult to get raw materials.”
Salazar stated manufacturers must plan as a lot “as you can to get product in ASAP, and have a backup plan, or you’ll miss your fourth-quarter numbers.”
“Aside from all that, major carriers [FedEx, UPS, DHL] are still running over 100 percent capacity and I don’t anticipate that going away anytime soon,” he stated. “The carriers have to take time to expand their capacity to handle the explosive growth of e-commerce, so in the meantime, you should anticipate continued shipping disruptions and delays. The good news is, we are making progress towards coming out of the pandemic, but the supply chain still needs to keep up.”
Salazar additionally stated as extra folks return to purchasing in-person and in-store, “retailers and brands have to make sure they are resourcing all their channels properly. That means making sure you have enough resources allocated to supply your e-commerce, bricks-and-mortar and wholesale channels: people, marketing dollars, technology, operations.”