In this episode, host Josh interviews Corey Apirian, a seasoned supply chain leader, about innovative e-commerce supply chain strategies. Corey explains how Davinci enables brands to create virtual product bundles, optimize inventory, and improve profitability across channels like Walmart and direct-to-consumer platforms. They discuss the limitations of relying solely on Amazon’s fulfillment, the benefits of diversified fulfillment strategies, and the importance of data-driven merchandising. Corey also shares advice on global supply chain resilience, emphasizing hybrid inventory approaches and multi-sourcing. The episode concludes with actionable tips for brands to enhance agility and succeed in today’s evolving e-commerce landscape.

Chapters:

Introduction to Corey Apirian and His Expertise (00:00:00)
Josh introduces Corey Apirian, highlighting his 19+ years in supply chain, e-commerce, and channel merchandising.

Product Bundling Without Physical Kitting (00:00:49)
Discussion on creating product bundles and differentiated SKUs without pre-kitting, optimizing inventory and channel profitability.

Market Basket Analysis and Channel Merchandising (00:03:00)
Explains how market basket analysis informs merchandising, bundle creation, and channel-specific assortment strategies.

Optimizing Multi-Channel Fulfillment Beyond Amazon (00:06:42)
Debate on Amazon’s multi-channel fulfillment versus direct integrations, control, and agility for brands.

Limitations of Amazon’s Fulfillment Ecosystem (00:07:44)
Details the drawbacks of relying solely on Amazon FBA and multi-channel fulfillment, including cost, control, and data limitations.

Direct Integrations and Fulfillment Strategy Recommendations (00:09:50)
Advice for larger brands to use direct integrations and diversified fulfillment for better control and profitability.

Global Supply Chain Challenges and Recommendations (00:11:07)
Corey’s advice on hybrid inventory strategies, multi-sourcing, and supply chain agility in a changing global landscape.

Actionable Takeaways for E-commerce Brands (00:13:17)
Josh summarizes three key action items: hire a supply chain manager, diversify beyond Amazon, and leverage expert partners like DaVinci.

Closing Remarks and Contact Recommendation (00:15:43)
Josh encourages listeners to connect with Corey for tailored supply chain and merchandising insights.

Links and Mentions:

Tools and Services
"Davinci": "00:06:22"

Key Concepts
"Market Basket Analysis": "00:03:16"

Actionable Takeaways
"Hire a Supply Chain Manager": "00:13:17"
"Diversify Beyond Amazon": "00:14:29"
"Reach Out to Experts": "00:15:43"

General Advice
"Just-in-Time vs. Just-in-Case Inventory": "00:11:19"

Transcript:

Josh 00:00:00 Today I'm super excited to introduce you all to Corey Apirian, a seasoned supply chain and operations leader with over 19 years of experience. A key to his success was his ability to develop and execute strategies that drove significant growth, cost savings, and exceptional customer service. Specifically, he specializes in e-commerce and channel merchandising, aligning operational initiatives with corporate objectives and building and leading high performing teams through inclusion, collaboration and engagement. His experience includes product management, contract negotiations, continuous improvement, and implementing emerging technologies as well as cultivating key relationships. So with that, welcome to the podcast, Corey.

Corey 00:00:46 Thanks for having me, Josh. Excited to be here.

Josh 00:00:49 A seller could essentially come to you or a brand and say, hey, I've got here's a bunch of different products. I think some of these could be bundled really well together. I don't know which ones which, but obviously if you're doing that on Amazon FBA. You have to kit them together first and send them in before you can collect data. In your example, you don't actually have to have them kidded to actually create that skew and at least merchandise it on different sites.

Josh 00:01:15 Is that correct?

Corey 00:01:15 Yeah, it's exactly right. And like the cooler part about it is that all the excess inventory was then utilized on your merchant field, on your Walmart Marketplace and so on and so forth, so that you can create two packs, four packs, six packs of all the different core components. And really, you have no more waste, right? So you're utilizing now you can't force bundles onto consumers. I think we all know that. But by creating a different skew set a washcloth that's sold in a, in a in a traditional merchant store, you know, it might be $2 or $4, right? But when you when you bundle that as a four pack of washcloths, you know, I have two, two young boys, I don't just buy one washcloth like we buy a bunch of them at once. Right. And, you know, by able to have that differentiated assortment that's core to that demographic Online. You know, it really gives a fresh look at assortment and profitability and channel management.

Corey 00:02:09 And those are really important things. And then, you know, the efficiency of manufacturing those sets now in ships and in containers, reducing waste, creating efficiencies at the warehouse level also and profitability on freight and top line. I mean, those are all amazing things and all great success stories. And yeah, our tech allows that infinite permutation in a very targeted way, but also looking at the market baskets and suggesting what should be sold in a very targeted way. And that's the piece that I think people are really missing out there is combining the FDM, that front end merchandising with this concept of network optimization and inventory control, and how do you place goods and merchandise them on differentiated channel sets so that they're available for same day one day fulfillment, 1 to 2 day fulfillment, you know, through a physical location network. And again, that's exactly the problem that DaVinci is solving together.

Josh 00:03:00 That's amazing. Tell me a little bit more about that market basket analysis, right. That DaVinci is is doing some of the I, you know, to determine how you're going to merchandise different products or how to come up with the correct type of bundles.

Corey 00:03:16 Yeah, I mean, there's a lot of core principles of channel management and merchandising. You know, when you look at your club channels and having larger pack sizes, your mass channels having smaller, lower price point channels that interoperate also with what's in store? You know, a beauty manufacturer might have a 6.9oz bottle of shampoo. That's a proven bottle of shampoo and price point and cubic foot that has sat on a Walmart and Target shelf for the past 30 years and might have new updated packaging, new formula, ingredients. You know, that's the merchandising side of it. But like that, cubic foot turns and creates X number of dollars with the amount of profitability and cash flow turns that that has on shelf all the time. But when you when you ship that to target, they're going to merchandise that online and target in Walmart. You can have a buy in line pick up and store optionality to that. And they may offer it to ship to the end consumer in a myriad of different ways. But that same consumer might be adding two of those to their shopping cart.

Corey 00:04:14 They might be adding a 33 point ounce of the shampoo. Or at least, you know, five different bottles of that shampoo. That adds up to a 33.8oz and a 16.9 of conditioner, right? Maybe their ratios are different. So if you're a brand that's operating in that space, you now have the ability to directly merchandise som...