How Swoon improved lead time transparency to drive revenue and customer serviceMay 04, 2022
Swoon is a leading online furniture company, pioneering a new approach to design-led homeware based on agile product development and lean inventory management.
By eliminating inefficiencies in the traditional supply chain model, they can offer high-quality products at a price point accessible to everyday consumers through a fully digital service.
How Swoon transformed their supply chain
Swoon’s business model is to test and release new ranges in small quantities and move the successful items to large scale production while also selling on lead time. Supply chain visibility is key to the success of their business model.
Granular visibility of exactly where SKUs are in the ordering process is essential to manage stock levels, drive sales and deliver high levels of customer service.
Difficulty with accurate lead times
To maintain competitive pricing for customers, Swoon runs a low-stock model where products are sold based on their time from production to customer delivery.
Sales are dependent on the lead time of the product: when a lack of lead time clarity led to logistics teams adding extra buffer times to product delivery dates, Swoon saw sales on those products go down.
Unlocking live lead time updates
Zencargo’s digital platform now acts as a central supply chain control tower for their entire supply chain. By sending live lead time data to their ERP and WMS, Swoon can plan inventory in real-time.
The system also feeds live delivery estimates through to their ecommerce website for customers, connecting their customers with the most accurate lead time data.
Reduced cancellations and improved revenue
By showing the most accurate lead times, Swoon are able to maximise revenue and minimise cancellation by maintaining transparency and service levels throughout the sales process.
In the case of disruption, Zencargo’s implementation team were also able to implement agile transport solutions to minimise delays and maintain sales.
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