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Snapfulfil, SUBTA Survey Reveals Strategies, Challenges Within Young Subscription Commerce Sector
Forty-seven percent of today's subcom offerings launched in the last 12 months, but preparing for growth is a common pain point
Subscription commerce offerings are rapidly increasing, and while two-thirds of providers still have fewer than 1,000 subscribers, a new study suggests hope for revenue growth. According to the 2018 Snapfulfil and Subscription Trade Association (SUBTA) State of Subscription Commerce survey, 47 percent of today's subcom offerings launched in the last 12 months, and nearly one-third of all offerings believe their business will double in 2018.
The market outlook is bright for both growth and retention: by 2023, 65 percent of today's subcom offerings believe they'll see revenue growth of at least 100 percent, while 36 percent believe they'll see revenue growth of at least 501 percent. Currently, 30 percent of offerings experience 10 percent or less monthly member churn, while only 12 percent experience more than 25 percent churn.
For some subcom companies, however, growth and retention is a double-edged sword. Forty-eight percent of active subcom providers see demand forecasting as a significant fulfillment challenge, and because 74 percent of subcom providers still rely on paper- or spreadsheet-based warehouse management processes, their concerns may soon manifest as roadblocks. Among subcom providers' other greatest fulfillment challenges:
To alleviate challenges around growth, 25 percent of subcom providers outsource their fulfillment operations to a third-party logistics (3PL) provider. Subcom offerings that choose to outsource tend to be more established: 50 percent of those that work with a 3PL have maintained the relationship for 2-5 years, while another 20 percent have worked with a 3PL for more than five years.
Of the subcom providers that contract a 3PL, 75 percent cite better efficiency as their primary reason for the relationship; 60 percent cite lower cost, while 40 percent cite better performance.
"We're thrilled to see a new form of retail emerging. But as subcom grows in popularity, it's crucial for warehouses to plan for growth," said Kirk Anderson, Executive Vice President at Snapfulfil North America. "Although many of these nascent offerings currently have small subscriber bases, it's not uncommon for a subscription to gain tremendous popularity overnight. Once these providers have greater visibility into their inventory and process data, they'll have the information they need for more accurate demand planning - and, in turn, they'll be ready to scale quickly."
Among the study's other findings:
• Sixty-five percent of offerings fall under the curation model, where the provider selects items for customers based on knowledge of their tastes, while 14 percent follow the continuity model, where customers receive needed items - i.e. pet food or razors - on a defined schedule.
• The contents of a subcom box might be a surprise, but the arrival date often isn't. Fifty-seven percent of providers ship all subscriptions at the same time each month, while 19 percent stagger shipments.
• Sixty-five percent of subcom providers will consider box returns depending on the circumstances. The caveat: providers often require the entire box to be returned. Eighty-four percent of subscription offerings will not consider partial refunds for individual box elements.
"For subcom offerings, the sky's the limit - demand will continue to grow as more shoppers discover the range of options available via subscription," said SUBTA co-founder Paul Chambers. "As demonstrated by the number of offerings launched in the last year alone, retailers are ready to try their hand at a new form of e-commerce. SUBTA continues to provide support for these entrepreneurs both as they lay the groundwork for a subscription and as they look to scale."
For more information on the survey, visit https://info.snapfulfil.com/snapfulfil-resources-state-of-subscription-commerce-report.
About the 2018 Snapfulfil and SUBTA State of Subscription Commerce Report
Snapfulfil partnered with the Subscription Trade Association (SUBTA) to survey subscription box operators between March and April 2018. Respondents to the online survey included a total of 86 subcom operators.
About Snapfulfil
Snapfulfil is a best of breed, real-time warehouse management system which drives highly efficient warehouse operations, allowing companies to do more with the same or less resources.
Thanks to its unique blend of Tier 1 WMS functionality, proven delivery methodology and enterprise class IT infrastructure, more and more companies are turning to Snapfulfil to optimize inventory, space and labor within their warehouses.
Offering a range of deployment methods and payment options, including its unique, No Capex model, whatever the warehousing challenge, Snapfulfil offers a solution.
About SUBTA
The Subscription Trade Association (SUBTA), is a global network built for today's industry leaders, innovators and partners who are driving the rapid evolution of how consumers discover, buy and experience new products.
Launched in 2017, the association's mission is to support the growth of subscription businesses through: networking, professional development, customer service benchmarking, profitable growth and fostering a socially conscious subscription box industry. More information on the Subscription Trade Association (SUBTA) can be found on its website at: https://www.subta.com.
Nulogy, a leading provider in supply chain collaboration solutions, and Kinaxis, a global leader in supply chain orchestration, have announced a partnership to develop cutting-edge solutions for brand manufacturing supply chain networks worldwide.
The new partnership aims to catalyze fast-moving consumer goods (FMCG) and life science brands and their supplier networks to work together more effectively through digital transformation solutions, thereby mutually improving costs, service and revenue. Combining the supply chain orchestration capabilities of Kinaxis with the collaborative external manufacturing specialization of Nulogy will enable customers to share forecasts and order information with suppliers and receive inventory capacity information faster.
Nulogy’s purpose-built multi-enterprise platform enables greater responsiveness in the supply networks of leading FMCG and life science brands, including L’Oréal, Colgate-Palmolive, and Church & Dwight, as well as their extended suppliers and hundreds of sites around the world.
“Given the speed and volatility of today’s global market, it is more important than ever for brand manufacturers to digitally synchronize with their supplier communities in order to respond with agility,” said Jason Tham, CEO at Nulogy. “Through our partnership with Kinaxis, we look forward to collaborations that will elevate the performance of supply chain networks around the world.”
Kinaxis Maestro is the AI-infused end-to-end supply chain orchestration platform for fast, intelligent decision-making. Trusted by renowned global brands to provide agility and predictability to help navigate volatility and disruptions, Kinaxis has been a leader in supply chain planning for over 40 years.
"Our partnership with Nulogy improves visibility, control and collaboration of the upstream network of critical suppliers, like contract manufacturers and co-packers, by integrating a variety of supplier data into Maestro,” said Bill Walker, Senior Director, Partner Solutions Extensions at Kinaxis. “Giving our customers the ability to better run simulations, digitize planning and connect in suppliers.”
Learn more about the partnership at ASCM Connect on September 9, 2024. Kevin Wong, Chief Operating Officer, Nulogy; Polly Mitchell-Guthrie, Supply Chain Thought Leader, Kinaxis; and German Vizcaya Leon, VP Global Planning, Colgate-Palmolive will discuss how Nulogy and Kinaxis’s solutions in Advanced Planning & Scheduling and Supplier Collaboration have played pivotal roles in interconnecting Colgate’s network.
FOR IMMEDIATE RELEASE
Contact: Sherri Bosslet
Title: Director of Customer Relations
Phone: 937.415.1715
Email: sbosslet@daytonfreight.com
Date: September 5, 2024
Web: daytonfreight.com
ULINE AWARDED DAYTON FREIGHT FOR EXCEPTIONAL PERFORMANCE
DAYTON, Ohio – Dayton Freight Lines, Inc., a leading provider of regional less-than-truckload (LTL) transportation services, was presented the 2023 Exceptional Performance Award and the Minnesota LTL Carrier of the Year award from Uline.
The 2023 Exceptional Performance Award and the Minnesota LTL Carrier of the Year award were presented to Dayton Freight’s Milwaukee and Hudson Service Centers, respectively. Both awards were given based on the following criteria: exemplary customer service, technological innovation and lastly, partnership and dedication.
Uline, a family-owned business, is the leading distributor of shipping, industrial and packaging materials to businesses throughout North America.
Dayton Freight’s Director of Customer Relations, Sherri Bosslet quoted, “We are incredibly proud of our Service Centers in Milwaukee and Hudson WI for receiving these awards. These accolades from Uline truly demonstrate the dedication and diligence of our Dayton Freight team. We look forward to a lasting partnership for years to come.”
Founded in 1981, Dayton Freight is a private, union-free, less-than truckload (LTL) freight carrier headquartered in Dayton, Ohio. Currently ranked as the country’s 12th largest LTL company, Dayton Freight has 70 Service Centers in 14 Midwest states, served by 6,000+ employees. Offering 1 or 2 day service to thousands of cities, Dayton Freight is known for its prudent growth, operational excellence, advanced technology and an unparalleled company culture known as The Dayton Difference.
Photo Caption: Jeremy Cutchens (Dayton Freight), Shelly Hofmeister (Dayton Freight), Ed VanGrouw (Dayton Freight), Eric Dreissig (Uline), LJ Groen (Uline)
Nulogy, a leading provider of supply chain collaboration solutions, is hosting a session during the Association of Supply Chain Management's ASCM Connect 2024. Nulogy, Kinaxis and Colgate-Palmolive executives will present “Orchestrating Digital Transformation: Nulogy & Kinaxis Empower Colgate-Palmolive’s External Network” on Monday, 9/9/2024, 3:45 - 4:45 p.m. CT in Ballroom E, Level 4.
In an era when digital transformation is paramount for sustainable growth, Colgate-Palmolive stands out as a leader in the consumer packaged goods space. With a strong digital transformation vision and strategic partners that tout the technical capabilities and expertise to bring it to life, Colgate and its extended supply network has been able to reap the benefits of digitally-infused agility, resilience and efficiency to outcompete in today’s marketplace.
The session will cover Colgate-Palmolive’s vision for transforming its supply chain planning and execution, highlighting the imperative to enhance supply chain synchronization and collaboration.
Nulogy and Kinaxis join Colgate-Palmolive in this talk to discuss how their best-of-breed solutions in advanced planning and scheduling and supplier collaboration have played pivotal roles in interconnecting Colgate’s network.
Speakers include:
Moderator: Christine Barnhart, CPIM Chief Marketing and Industry Officer, Nuology
Panelist: Kevin Wong Chief Operating Officer, Nulogy
Panelist: Polly Mitchell-Guthrie Supply Chain Thought Leader, Kinaxis
Panelist: German Vizcaya Leon VP Global Planning, Colgate-Palmolive
Check out the complete Colgate-Palmolive case study by visiting https://bit.ly/3z6xwPK.
Covington, KY — In a significant step toward redefining supply chain efficiency and boosting the local economy, Lakeshore Learning hired Zion Solutions Group, a trailblazer in advanced supply chain integration, to help implement a cutting-edge 1.2 million square foot distribution center in Garland, Utah. This collaboration is set to create over 500 jobs, showcasing an unparalleled commitment to innovation and community development.
“Our relationship with Lakeshore Learning, beginning in 2015, has been a testament to what visionary collaboration can achieve," stated Jim Shaw, President of Zion Solutions Group. “This is not just a collaboration; it’s a leap toward the future of supply chain management. By combining Lakeshore Learning’s vision with our technological expertise, we are set to introduce a distribution hub that exemplifies efficiency, sustainability, and economic growth for Garland."
Artin Ghazarian, Chief Supply Chain Officer at Lakeshore Learning, highlighted the project's ambition: "Our journey with Zion Solutions Group has been marked by a shared drive for excellence. This distribution center goes beyond expanding our logistical capabilities—it's a testament to our dedication to setting new industry standards for efficiency and environmental stewardship in supply chain management."
Jordan Frank, EVP & Co-Founder of Zion Solutions Group, emphasized the collaborative synergy: Our relationship with Lakeshore Learning is more than a partnership; it's a melding of minds aimed at redefining the future of our industry. We're not just optimizing logistics; we're crafting a model of innovation that leverages technology for smarter, more sustainable operations. Our goal is to inspire the sector by demonstrating how collaboration and technology together can create impactful solutions.”
The facility will harness the latest in automation and robotics to optimize both efficiency and scalability. Zion Solutions Group will play a crucial role in this evolution, meticulously shaping the project from its conceptual stages to its final form. This includes value-added engineering to support Lakeshore Learning’s specific needs, overseeing the procurement and engineering processes to ensure precision, and integrating advanced software solutions—including Zion Apex (WES)—for peak functionality. Beyond the project’s completion, Zion’s Customer Experience team will continue to support the operations team and provide optimization opportunities, ensuring the facility operates smoothly and evolves with technological advancements.
With an operational goal set for 2025, Lakeshore Learning’s Garland distribution center represents a major milestone in job creation and economic growth for the region. This initiative aligns with Zion's mission to drive sustainable innovation and cement its leadership in the market.
For more information about Zion Solutions Group and its groundbreaking projects, please visit https://thezsg.com/.
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About Zion Solutions Group
Zion Solutions Group, a leader in Supply Chain Integration, uses its 90+ years of knowledge to deliver memorable experiences and guide intelligent change. Specializing in material handling integration, Zion provides comprehensive services that include detailed data analytics, solution design, procurement, implementation, and post-implementation support. Our customer-centric approach and Project Lifecycle process ensure tailor-made solutions using cutting-edge technology, setting us apart in the industry. Zion, in support of its core purpose, “To Leave a Positive Impact on the Lives of Those We Touch,” is committed to driving success and sustainable growth for our partners and customers.
About Lakeshore—Products Designed with Learning in Mind®
Lakeshore Learning Materials is a leading developer and retailer of top-quality materials for early childhood education programs, elementary schools, and homes nationwide. Since 1954, Lakeshore Learning Materials has offered innovative learning materials distinguished by their quality, educational merit, and safety. To learn more, visit LakeshoreLearning.com.
Panel Built, Inc., a leading provider of modular offices, mezzanines, and custom-engineered structures, has announced plans to expand its primary facility, PB1. The expansion will include additional office and fabrication space, allowing the company to better accommodate its rapidly growing workforce and increasing demand for its innovative space solutions.
As Panel Built continues to experience significant growth in both personnel and market reach, this expansion marks a critical step in the company’s strategic development. The additional space will enable the company to enhance its operational efficiency and continue delivering high-quality products and services to its diverse client base. The expanded facility will also provide a more collaborative work environment for the Panel Built team, fostering innovation and reinforcing the company’s commitment to excellence.
"Panel Built has built a reputation for delivering modular solutions that meet the unique requirements of various industries, including commercial, military, government, and industrial sectors. The company's expertise in engineering, design, and installation has made it a trusted partner for organizations seeking efficient and customizable space solutions.
The Blairsville facility expansion is expected to be completed by early 2025. Panel Built is committed to maintaining uninterrupted service to its clients throughout the construction process, ensuring that all projects remain on schedule and meet the company’s high standards of quality."
- Mike Kiernan CEO
About Panel Built, Inc.
Founded with the mission "To Solve Our Customers' Space Needs With Excellence And Great Customer Service," Panel Built, Inc. specializes in modular construction, offering a range of solutions from modular offices and mezzanines to guardhouses and cleanrooms. With extensive experience in both public and private sectors, Panel Built is dedicated to delivering space solutions that meet the highest standards of quality, safety, and customer satisfaction.