Sephora’s early investments in flexibility have paid off.
Sephora, like most retailers, had to close its stores during the pandemic. Whereas many others struggled to build or shore up an online presence, Sephora shifted gears with little effort. It relied on its inventory system linking brick-and-mortar retail and e-fulfillment facilities as well as on a distribution network with rapid access to most zip codes. Not only did the company meet customers’ expectations, but it also increased market share.
Video Spotlight: Sephora Promotes its Safety Guidelines as Stores Reopen
This post is based on the Supply Chain Dive article, How Sephora Flexed its Warehouse Network to Prep for an E-Commerce Onslaught, by E. Cosgrove, August 25, 2020, and the YouTube video, Sephora to Take a Measured and Supportive Approach to Reopening Select Retail Locations in the US, by BusinessWire, May 26, 2020. Image source: Africa Studio / Shutterstock.
Discussion Questions:
1. Explain how Sephora’s network design enabled the company to meet demand during the pandemic.
Guidance: Sephora had already built flexibility in its distribution network. Its five warehouses are located in four states (Maryland, Mississippi, Nevada, and Utah) to ensure coverage of and delivery Continue reading
