What is D2C?

In a D2C / Direct-to-Consumer (or Consumer-Direct) business model, manufacturers, retailers or distributors market, sell, and ship their products directly to consumers, without relying on traditional brick and mortar storefronts or other intermediaries.

In recent years, the D2C model has been gained traction as there are many benefits. For manufacturers, DC2 allows the manufacturer to streamline the process, without sharing their margins, in some cases bypassing distributors and retailers. By disintermediating the go-between, manufacturers are one step closer to their customers and can build closer relationships and increase brand loyalty. However, the manufacturer has the added responsibility of fulfilling consumer demand and managing the associated logistics.

For suppliers and retailers, the D2C model offers another channel to the customer, that can improve revenues with ecommerce and an omnichannel business strategy. COVID-19 has further accelerated the shift to a D2C model as foot traffic in retail stores has decreased and many stores have had to shutter their business. In contrast, consumers have dramatically increased their online purchasing in response to the recent pandemic.

One Network’s NEO Platform supports all channels, and enables businesses to easily expand or transition to a Direct-to-Consumer strategy. It provides a single omnichannel platform that enables network-wide visibility, supply chain planning and execution, and integrates logistics management.  With a network platform, businesses can see their entire supply chain from inbound raw materials to last mile doorstep delivery.  This improves customer satisfaction by increasing visibility and collaboration, optimal demand-supply matching, and by coordinating complex orders so products do not arrive piecemeal.  A D2C shift can help manufacturers, distributors and retailers gain market share and accelerate revenue growth.