The world of e-commerce software can be overwhelming. Everyone from NetSuite to smaller solutions claim to be the perfect fit. But the truth is, e-commerce businesses are not one-size-fits-all. Jared, founder of Luminous (a supply chain solution company), dives into a specific challenge faced by businesses selling perishable goods directly to consumers (DTC).
Beyond Industry: Understanding Your Operational Archetype
This blog focuses on the non-traditional DTC archetype. These businesses, unlike traditional DTC companies selling apparel or electronics, experience massive complexity early on in their growth. Think meat, fish, dairy – products typically not associated with DTC models.
The Non-Traditional DTC Challenge
Proposing a framework to help businesses find the ideal balance, he presents a graph with complexity on the Y-axis and time/business growth on the X-axis. Ideally, businesses should implement processes and software that correspond with their growth trajectory.
Why the Complexity?
- Early Regulatory Hurdles: Unlike traditional DTC, non-traditional companies grapple with compliance issues like lot tracking and traceability before reaching significant revenue.
- Specialized Packaging and Cold Chain Logistics: Keeping perishable goods fresh requires specific packaging and cold chain logistics – a whole new level of complexity compared to simply shipping from a warehouse.
- Subscription Model Mayhem: Subscriptions add another layer of complexity to inventory forecasting and management.
- Juggling Sales Channels: Many non-traditional DTC companies find themselves catering to both direct-to-consumer and wholesale channels, adding further complexity.
Johnny's Meat Headache: A Case Study
Imagine Johnny, a meat wholesaler, deciding to launch a DTC business. Suddenly, he's facing all the challenges above – way before hitting a million dollars in revenue.
Johnny's Struggle in Action
- From Experimental Chaos to Regulatory Compliance: Johnny starts with basic packaging, but quickly needs a system for lot tracking and traceability.
- Cold Chain Conundrum: Johnny can't just use a standard 3PL. He needs a system to manage disassembly, butchering, cold storage, and fulfillment for his perishable products.
- Subscription Surprise: A seemingly simple addition, a subscription model throws a wrench into Johnny's inventory forecasting.
- The Wholesale Wild Card: Specialty retailers come calling, adding another sales channel to the mix.
The Software Trap: Big or Busted?
Traditional solutions like NetSuite are overkill for Johnny's sub-million dollar business, with hefty implementation costs and monthly fees. Smaller solutions might be affordable, but they lack the functionality to address Johnny's specific needs.
The Luminous Solution
Luminous is designed specifically for the complexities faced by non-traditional DTC businesses. They offer:
- Affordable Pricing: Unlike NetSuite, Luminous caters to companies below the million-dollar revenue mark with pricing that won't break the bank.
- Comprehensive Functionality: Luminous tackles all of Johnny's challenges – from cold chain management to subscription forecasting.
- Focus on Early-Stage Businesses: Luminous understands the unique needs of non-traditional DTC companies before they reach major scale.
The Takeaway: Complexity Doesn't Have to Stop You
The good news? If you can overcome the early complexity hurdle, the growth curve for non-traditional DTC businesses smooths out. By choosing the right software solution, you can avoid the headache and focus on growing your business.
Are You a Non-Traditional DTC Business?
If you're selling perishable goods directly to consumers and feeling overwhelmed, Luminous can help. We offer affordable software solutions designed to tackle your unique challenges. Book a demo today and see how we can help you streamline your operations and achieve growth.