A Direct Hit

As retail businesses explore all their supply chain options, many find that direct-to-consumer (DTC) models may be the right approach.

In fact, two-thirds of North American organizations say their investment in the DTC delivery model has increased since early 2020, according to a new Deposco report, The Rise of Direct-to-Consumer in North America.

Respondents from ecommerce, manufacturing, retail, transportation, logistics, supply chain, and wholesale businesses who invested in DTC point to the following benefits:

• 38% say DTC models can improve profit margins.
• 31% say it will reduce costs.
• 23% note the ability to personalize their service offering as a key driver.

There are, however, some barriers to DTC success. Nearly one-quarter of respondents (24%) point to a lack of skilled staff, while physical infrastructure (23%) also creates some difficulties. But planning can overcome these roadblocks. More than half (54%) say preparing with the right mix of people, processes, and technology positions their organizations for DTC success.