A clothing e-retailer quintuples sales by keeping better track of inventory
By Amy Dusto
September 10, 2013 Internet Retailer
Farm Fresh Clothing monitors order and inventory status with Stitch Labs’ technology.
Founded in 2010, custom T-shirt seller Farm Fresh Clothing last year was floundering as it tried to track its inventory and orders with a system only one staffer knew how to use, founder Matthew Morgan says. After switching to software from Stitch Labs, however, the company in roughly one year was able to grow from annual revenue of $600,000 to $3 million, he says, attributing 80% of that growth to the simplification Stitch Labs brought to the business’ operations.
“We began using Stitch and our company just took off,” Morgan says. “The sales crew has real-time information about what inventory we can sell immediately and what’s in production on the way from factories.”
In addition to selling direct-to-consumers on its e-commerce site, Farm Fresh fills custom, bulk T-shirt orders for large businesses like Facebook Inc., he says. “We have to know we can deliver them by the day they need them,” he says. But because each shirt comes in 15 styles and seven sizes, keeping track of inventory availability while fulfilling large orders can be complicated.
With Stitch Labs though, any member of the Farm Fresh sales team can log in to the inventory and order management dashboard on an iPad while out talking to business clients and immediately see how many SKUs of each product is available. Then, he can write an order to tell the warehouse to reserve a set amount of shirts. The warehouse staffers will receive that notification right away because they’re logged into the same dashboard, Morgan says.
“As soon as he writes the order and saves, it’s done and he can go on to next order,” he says. “It’s a very fluid, minute-by-minute process—we feel like we’re in total control.”
Stitch Labs provides a web-hosted tool that shows with red and green lights on an administrative web page whether customer orders have been processed or invoiced (Farm Fresh sends invoices to customers on delivery); each order also has a progress bar showing how far along it is in the production to delivery process, he says.
Because all nine members of Farm Fresh’s management team can use Stitch Labs simultaneously, the retailer saves lots of time it would otherwise spend in staff communications, he says. Last year at $600,000 annual revenue, managing orders and inventory across various sales contracts “wasn’t comfortable,” he says, but “at $3 million now, it’s just on glide.”
Farm Fresh pays for Stitch Labs’ premium plan, which is $125 per month and handles up to 10,000 monthly orders and 15 staff users, though it probably doesn’t need all that service yet, Morgan says. “We feel like we’re saving so much and it’s helped our company so much,” he says.
Stitch Labs’ basic plan starts at $25 per month for up to 50 monthly orders and three staff users. It also offers a professional plan for $45 per month for up to 200 monthly orders and five staff users, a business plan for $75 per month for up to 500 monthly orders and 10 staff users and special contract pricing for enterprise clients with more than 10,000 monthly orders.Source: http://www.internetretailer.com/2013/09/10/e-retailer-quintuples-sales-better-managing-inventory