Helped Bloomist in Identifying Up to 20% Revenue Leakage Due to Preventable Stockouts Introduction

Find out how Bloomist discovered how much a stockout was costing their business.

Introduction:

Bloomist is a direct-to-consumer home goods brand inspired by nature. Due to their unwavering commitment to sustainability, they have been able to carve out a distinctive niche in the market. With its uniquely curated catalog of products sourced from its extensive network of suppliers, makers, and brands, Bloomist has been able to successfully grow its brand. With Genie’s help, they discovered their large catalog has some stockout issues that could be costing them up to 20% in revenue leakage.

I don’t have much time to buy everything we need, so it’s very common with our catalog and array of suppliers that something may have just stocked out or I’ve missed it in the order. This created issues and revenue leakage that were a nightmare to track down before Genie.

The challenge: Unearthing lost revenue from stockouts 

Supplier diversity is what many brands strive for, it provides some protection from potential supply chain disruptions. But it also comes with the hassle of keeping up with all of those suppliers and keeping stock at the right levels. With Bloomist’s catalog consisting of over 675 products from 103 suppliers, it’s easy to see how they might have missed a few products here and on their restock days. After all many brands struggle to keep up with just a handful of suppliers.

However, once they were fully onboarded and their data was configured on Genie, Bloomist could easily identify which products were at risk of stocking out, overstocked, and currently stocked out. Leaving them to wonder how many sales they were missing out on and how much these preventable stockouts and cashflow blockers were hurting their business. 

The solution:

With looming questions like “How much revenue are we missing out on? How do we avoid stockouts? Where do we start?” It was clear Bloomist needed to embrace the insights Genie could provide and leverage them to avoid stockouts and effectively balance stock levels proactively. The solution was real-time data and insights that would allow for more accurate stock tracking, better forecasting, and proactive analytics. These were things that required more intimate knowledge of inventory data and reports that simply didn’t exist in Shopify natively. Having access to the level of insights Geie could provide meant there was no need for guesswork or reactive restocking.

The Results:

In a matter of months, Bloomist was able to identify and patch up the almost 20% revenue leaks by leveraging Genie’s daily insights on sales and stock performance, weekly sales velocity reports, and an intuitive purchase order management system. Armed with almost supernatural knowledge of their inventory, Bloomist has been able to identify stockouts well before they happen, re-order the right amount of units, and identify top-performing products.

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