The Process
Under SIZE's guidance, the DYPER team embarked on a strategic overhaul. The first step was renegotiating the carrier agreement and transitioning freight to a more cost-effective partner to cut transportation costs significantly. Consolidating warehousing operations into a single, owned facility further reduced fulfillment and storage expenses. By partnering with a reliable third party logistics provider for retail shipments, DYPER significantly improved On-Time and In-Full delivery rate, thus reducing chargebacks and customer complaints.
To further enhance efficiency, the team implemented demand planning and inventory control processes, successfully reducing inventory levels from 23.3 weeks to 16.4 weeks of supply within five months, with a goal to stabilize inventory at 6-8 weeks by the latter part of the year.
The Results
Through these efforts, DYPER transformed its operational landscape. The strategic overhaul in operations resulted in reduced costs and improved efficiency, enabling the company to maintain high service levels and improved On-Time and In-Full delivery rate. The consolidation of warehousing into a single, owned facility streamlined fulfillment processes, supporting DYPER's growth without compromising quality.
Key Outcomes:
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Operational Efficiency: The improvements in inventory management brought the average weeks of supply down from 23.3 to 16.4, freeing up capital and reducing storage costs. This leaner inventory approach is set to stabilize further, targeting 6-8 weeks of supply by the latter part of the year.
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Sustainability and Growth: With a stronger, more cohesive operational team and optimized processes, DYPER is well-positioned to continue its trajectory of growth and innovation in the eco-friendly diaper market.
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The Brand
DYPER, a mission-driven company in the sustainable diaper industry, reached out to SIZE for operational optimization and strategic guidance to support their growth.
Leveraging innovative materials and smart technology, DYPER offers parents a superior diapering experience while significantly reducing their carbon footprint. Their commitment to sustainability and quality has positioned them as a leader in the market, appealing to eco-conscious families worldwide.
The Objective
SIZE Partner Kirsten Hochberg was engaged to optimize DYPER’s operations, streamline logistics, improve inventory management, and refine the overall operational strategy to support DYPER’s growth and sustainability goals.
The Challenge
DYPER faced a multifaceted operational challenge that threatened its ability to scale efficiently. High logistics costs were consuming 25% of revenue, with transportation expenses at 16% and warehousing at 9%. Additionally, inconsistent retail shipments were leading to missed deliveries, damaging relationships with key retailers. High inventory levels, averaging 23.3 weeks of supply, were tying up capital and space, further complicating the company's operational efficiency.
Why do you enjoy your work with SIZE?
“I feel so lucky to be able to work with a team as qualified as DYPER. With a bit of strategic direction, we were able to make meaningful changes to both the P&L and to the culture in a very short period of time. Feeling the momentum of improvement is fun and exciting.”
Kirsten Hochberg
Partner, SIZE/SUPPLY CHAINS AND OPERATIONS
SIZE + DYPER | Interim Leadership & Operations Optimization
DYPER, a mission-driven company in the sustainable diaper industry, partnered with SIZE for interim leadership and operations optimization during a pivotal period of growth. SIZE partner Kirsten Hochberg stepped in as interim COO, leading a strategic overhaul of logistics, inventory management, and operational processes. Her leadership reduced costs, improved supply chain efficiency, and positioned DYPER for sustainable growth while maintaining their eco-friendly mission.