Engineering Success Across Channels: A Guide to Unified B2B and B2C Fulfillment

Many growing brands start with a single channel focus – either B2B or direct-to-consumer (DTC). But as your brand evolves, managing multiple channels becomes essential for sustainable growth. While it might seem logical to handle B2B and DTC fulfillment separately, this approach often creates unnecessary complexity and missed opportunities. Let's explore why unifying your fulfillment operations can drive better results, and what to look for in an omnichannel fulfillment partner.

The Power of Unified Inventory Management

Managing inventory across channels is one of the most complex challenges growing brands face. When B2B and DTC operations are separated, you're essentially running two parallel businesses with double the complexity. The reality is that modern inventory management should be channel-agnostic at its core, while accommodating channel-specific requirements in execution.

Consider these key differences in channel requirements:

• B2B typically requires EDI compliance and retail routing guides
• DTC demands real-time inventory accuracy and fast shipping
• B2B orders are largely predictable and scheduled
• DTC ordering patterns can be highly variable
• B2B tracks by pallet and case
• DTC requires individual unit tracking

A unified approach brings clarity and control to these complexities.

Smart Storage Strategy: The Efficiency Multiplier

When you combine B2B and DTC inventory storage, you unlock significant operational advantages. Smart storage strategy isn't just about warehouse space – it's about creating flexible inventory pools that can serve any channel while maintaining clear visibility and control.

Key benefits of unified storage include:

• Reduced overall inventory requirements
• Lower carrying costs
• Minimized dead stock
• Improved inventory turns
• Greater flexibility in order fulfillment

Technology: The Foundation of Omnichannel Success

Modern fulfillment technology should seamlessly handle both B2B and DTC requirements within a single system. This means supporting:

• EDI compliance for major retailers
• Real-time inventory visibility
• Multiple picking methodologies
• Channel-specific packing rules
• Integrated returns management
• Cross-channel reporting

The right technology platform eliminates silos while maintaining channel-specific controls.

Operations: Engineering Channel-Specific Excellence

While inventory can be unified, fulfillment operations must be engineered to meet distinct channel requirements. A sophisticated fulfillment operation should maintain:

B2B Excellence:

• Retail compliance expertise
• EDI integration capabilities
• Scheduled delivery management
• Bulk picking optimization
• Retail routing guide compliance

DTC Precision:

• Fast order processing
• Custom packaging capabilities
• Real-time tracking
• Returns management
• Customer experience focus

The Power of Strategic Retail Partnerships

For beauty and wellness brands, working with a 3PL that serves as a consolidator for major retailers can provide significant advantages. A consolidator aggregates multiple brands into single shipments to retailers, creating efficiencies and benefits for all parties involved.

Key benefits of working with a consolidator include:

Cost Savings

• Retailer-paid shipping programs
• Reduced transportation costs
• Lower operational overhead
• Efficient resource utilization

Enhanced Retail Relationships

• Streamlined retail compliance
• Strategic growth guidance
• Simplified communication channels
• Proven operational expertise

Operational Benefits

• Regular delivery schedules
• Proactive inventory planning
• Reduced chargebacks
• Predictable operations

Sustainability Advantages

• Reduced transportation miles
• More efficient container utilization
• Lower carbon footprint
• Enhanced environmental reporting

Common Omnichannel Fulfillment Challenges

Many 3PLs struggle with true omnichannel execution for several key reasons:

Infrastructure Limitations

Most fulfillment centers were originally designed for either B2B or DTC operations. Retrofitting a warehouse to handle both effectively requires significant investment and expertise. B2B operations need space for bulk storage and staging areas for large shipments, while DTC demands dense picking areas and individual packing stations. Without purpose-built infrastructure, fulfillment centers often create inefficient workarounds that impact speed and accuracy.

Technology Gaps

Often 3PLs rely on legacy warehouse management systems (WMS) that excel at one type of fulfillment but struggle with others. True omnichannel fulfillment requires sophisticated technology that can:

• Manage different picking methodologies simultaneously
• Handle complex retail compliance rules
• Process individual orders efficiently
• Maintain real-time inventory accuracy across channels
• Integrate with multiple sales channels and marketplaces

Legacy systems often require manual interventions or separate systems for different channels, creating inefficiencies and increasing error rates.

Operational Complexity

Omnichannel fulfillment demands different workflows, skill sets, and quality control processes. Common operational challenges include:

• Staff training for multiple fulfillment types
• Managing varied packing requirements
• Balancing resources during peak periods
• Maintaining consistent quality across channels
• Coordinating returns from multiple sources

Most 3PLs lack deep experience with retail compliance requirements, leading to:

• High chargeback rates
• Missed delivery windows
• Incorrect EDI implementations
• Poor packaging compliance
• Incomplete documentation

Resource Allocation

Balancing resources between channels can be particularly challenging. Issues often arise with:

• Labor allocation during peak periods
• Equipment sharing between operations
• Storage space optimization
• Dock door scheduling
• System maintenance windows

Choosing the Right Omnichannel Partner

When evaluating fulfillment partners for multi-channel operations, consider:

1. Technology Capabilities

• Unified inventory management
• Channel-specific controls
• Real-time visibility
• Integration flexibility
• Reporting depth

2. Operational Excellence

• Retail compliance track record
• DTC fulfillment metrics
• Quality control systems
• Peak season performance
• Returns management

3. Strategic Alignment

• Growth support capabilities
• Industry expertise
• Geographic coverage
• Cultural fit
• Long-term vision

The Capacity Approach to Omnichannel

Here at Capacity, we've engineered our fulfillment solutions to excel across channels. As a consolidator for both Sephora and Ulta Beauty, we offer unique advantages for beauty and wellness brands. Our approach includes:

• Advanced WMS technology that handles both B2B and DTC seamlessly
• Deep expertise in retail compliance and DTC excellence
• Significant cost savings through retailer-paid shipping
• Over 1 million road miles saved for major retail partners in 2023
• Strategic guidance for retail channel expansion
• Comprehensive quality control systems
• Strategic locations for optimal delivery coverage

Looking Ahead

As the lines between B2B and DTC continue to blur, having a fulfillment partner who excels across channels becomes increasingly crucial. The right partner should help you navigate this complexity while maintaining operational excellence in every channel.

Ready to explore how unified fulfillment can support your growth? Let's discuss engineering an omnichannel solution that matches your ambitions.