The brand dilemma: traditional warehouses in a DTC world
Today’s CPG companies face a problem that’s keeping supply chain leaders up at night: warehouses built for pallets now need to ship individual parcels at Amazon speed. CPG supply chain solutions simplify these operational barriers, evolving your brand from chaos to advanced fulfillment excellence that can keep flexing as things change.
The new reality of CPG supply chains
According to recent industry research, direct-to-consumer (DTC) sales volume has increased for more than 70% of CPG brands over the past year, with projections showing a predictable 10-25% continued growth in the next 12 months. This isn’t a temporary shift—it’s the new reality.
The stakes are high—74% of supply chain leaders are ramping up their tech investments while 36% are planning to invest over $10 million (up 19% from last year) to solve this challenge.
Traditional CPG supply chain solutions need more
Let’s face it—legacy ERP systems alone can’t handle the demands and complex fluctuations of today’s omnichannel reality. They excel in providing financial context to the business, but lack flexibility now that the inventory management game is far from steady (or affordable).
Thankfully, new CPG supply chain solutions give older systems a leg up. They provide pre-built WMS integrations to the ERP systems you already know and love.
Discover the latest trends in DTC fulfillment and learn how CPGs are mastering their supply chain operations.
At least 12% of supply chain leaders admit they’ve over-invested in rigid, legacy supply chain suites, which now leave their warehouses struggling to:
- Process retail pallets while fulfilling thousands of DTC orders
- Handle personalization requests from increasingly demanding consumers
- Connect seamlessly with exploding marketplace channels like Shopify
- Provide inventory visibility that’s actually accurate and real-time
- Support the sustainability initiatives that customers demand
The DTC imperative: flexibility matters more than ever
Many DTC sectors are seeing hockey-stick demand, with 82% supply chain leaders projecting sustainable growth of 10-25% over next 12 months. Most companies (86%) derive about half of their revenue from DTC channels.
But here’s the catch: the direct consumer market wants things differently. This isn’t just about changing products; it’s about completely reinventing how those products reach consumers.
After implementing Deposco, the company increased orders 300% and hourly picking by 7x. Plus, dramatic improvements in order accuracy, all while fulfilling orders in <24 hours.
https://deposco.com/resources/success-stories/plant-therapy/
For CPG brands, warehouse flexibility is vital for growth. Your operations need to support:
- The picker who’s grabbing single items instead of full cases
- The marketing team’s latest bundling promotion
- The sustainability manager’s need for packaging options
- The operations director’s demand for labor efficiency
- The consumer who expects complete transparency
Rapid implementation is no longer optional
Over 56% of CPG leaders are prioritizing investments in advanced inventory management systems to futureproof their DTC operations. Why? Because inefficient inventory management remains the primary challenge in achieving DTC fulfillment goals for 40% of brands.
Hourglass Cosmetics faced this exact challenge when expanding their operations.
“We signed with Deposco six months ago and we’ve been live for three months. You do the math on that!”
– Jon Siracusa, VP of Operations at Hourglass Cosmetics
Like many of our customers, Jon highlights the rapid implementation that modern WMS systems for CPG can deliver. Their new employees now require just 15 minutes of onboarding time—a critical advantage when scaling quickly.
Consider a CPG supply chain organization assessment
Take a hard look at your current setup and assess your organization for warehouse flexibility. Some things to ask when evaluating a flexible WMS:
👉 Are your team members drowning in paper processes while your competitors automate?
👉 Do you discover inventory discrepancies only after disappointing customers?
👉 Does adding a new fulfillment channel require an IT project with a six-figure price tag?
We call this “the flexibility tax”—the premium you pay for maintaining systems that fight change at every turn.
Deposco’s supply chain experts are available to do a CPG supply chain organization assessment to identify the true cost of inflexibility on your business.
CPG supply chain solutions help build responsible supply chains
Modern consumers don’t just buy products—they’re buying your values. A whopping 66% consider themselves environmentally aware, and despite economic pressures, all research indicates consumers are still willing to pay premiums for sustainable delivery options—though fewer than before the recent economic shifts.
A purpose-built WMS for CPG gives you the tools to walk the talk:
- Real-time inventory truth across your entire network
- Intelligence to optimize every shipment
- Custom dashboards that track what matters to your leadership
- Supply chain automation that frees your people for strategic thinking
- Pre-built integrations for marketplaces that accelerate omnichannel sales
- Simple, 15-minute onboarding for your seasonal workforce
- A clear path to advanced capabilities as you grow, such as order management (OMS)
The flexible foundation for CPG growth
Consumer behavior is changing faster than ever. The warehouses that win will be the ones that can change just as quickly. Cloud-native warehouse management software creates a foundation where you can confidently say “yes” to whatever comes next.
With 42% of supply chain leaders identifying advanced warehouse management systems as one of the most important technologies for establishing resilient DTC fulfillment in the next 3-5 years, the time to modernize is now.