by Jesta I.S. | August 2, 2021
Jesta I.S.’s podcast Taking Stock: Talking All Things Retail is about retail technology in an omnichannel world. Each episode features insightful conversations between technology leaders, retail executives and industry subject matter experts.
Episode 5 of Taking Stock features Arvind Gupta, President at Jesta I.S., with Ross Elliott, Chief Strategy Officer at TrueCommerce. Jesta I.S. is a global developer and provider of enterprise software solutions for retailers, wholesalers and brand manufacturers. TrueCommerce helps businesses be more connected across the supply chain, integrating everything from EDI to inventory management, fulfillment, digital storefronts and marketplaces, and business systems.
Listen to Episode 5: How Drop Shipping Helps Retailers Manage Elevated Demand >>
Ross Elliott, Chief Strategy Officer at TrueCommerce, explained: “[Drop shipping] is taking a step out of the overall supply chain from a fulfillment perspective and shipping something directly to a consumer from the person that stocks it, whether it’s a distributor or the person that manufactures it.”
“In 2020, when the pandemic hit us, we saw a big spike in the use of drop ship,” he continued. “It provided the retailer with the ability to extend their overall product assortment without necessarily building more warehouses, buying more rack space, putting on more employees. It allowed the manufacturer to extend what they were doing with their product further than they might have the past. It was a win-win situation, and the ultimate winner was the customer.”
The podcast episode went on to explore how businesses can plan for sudden bursts in elevated demand when they are used to preparing orders three to six months in advance.
“You now almost have two different ways of getting demand,” Ross Elliott said. “You have one that’s historical: I know what I did this time last year, I know what my seasonal demand might be from prior seasons and I will predict what my demand might be this year based on that.”
“The other might be simply somebody telling me what they believe the demand is going to be so that I can anticipate it ahead of time,” he continued. “It’s a matter of rethinking or adjusting your overall demand sensing capability. If you’re a retailer with stock in the store or in a DC, the traditional means still apply. If I’ve added on to that with a drop ship program, those demand signals are different and need to be thought about differently.”
Tune in to the podcast for more insights on how retailers can leverage drop shipping to:
• manage sudden bursts in demand
• easily expand inventory levels and product assortments
• satisfy customers with one-stop shopping
Interested in being a guest speaker in an episode of Taking Stock: Talking All Things Retail? Email Jesta’s Marketing Department at email@example.com.