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Case 6

Retail & E-Commerce

This Chicago-based retail and e-commerce company specializes in niche optics related products - riflescope, night vision gear, telescope, binocular, eyeglass, etc. The targeted customers include hunters, outdoor activity enthusiasts, and general consumers. With annual revenue around $300MM, the company has about 300 employees.

Like typical startup companies, the retail e-commerce company experienced growth pain and mistakes in managing the growth. It started with its own warehouse facilities. As the business grew, its facilities no longer provided the scalability so the company went with the option of outsourcing to a 3PL. The 3PL experienced financial challenges and started failing. The problem is that the retail e-commerce had completely outsourced its logistics to the 3PL by the time of the 3PL failure. With no other options, the retail e-commerce acquired the 3PL as its subsidiary. It then lost money 3 years in a row.

The retail e-commerce company survives the financial crisis. The CSF is its niche products backed by a team of product gurus. These product gurus play critical roles in sustaining the company's business:

 

  • Provide vast technical knowledge

  • Write blogs

  • Post advice on forums

  • Participate in new vendor and product selection

  • Help manage product information on website

  • Train other teams

  • Engage in everything else

  • Love what they do

​

These product gurus consist of retired police officers, passionate rangers, military veterans and die hard hobby enthusiasts.

 

Microsoft Dynamics AX 2013 R3 provides the Call Center module that fits perfectly with the company's unique situation. Along with the Inventory Management, Warehouse and Transportation Management, Demand Forecasting and of course the Accounting package, Microsoft Solution stack provides a holistic and integrated one package for the company's needs.

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