The Supply Chain is the Customer Experience

How Warby Parker and other vertically integrated ecommerce brands are breaking the mold

Traditionally, the customer experience is viewed as decidedly separate from the supply chain, but that is no longer the case. The on-demand trend has brought customers that much closer to the goods and services they purchase. Customers now have high expectations towards efficiency, transparency and convenience largely driven by eCommerce.

That being said, the convenience of shopping online comes with one distinct drawback. Unlike shopping at a store, the customer does not get to walk away with their purchase in-hand. Therefore, online retailers must work even harder to improve their supply chains and get their products to consumers as quickly and seamlessly as possible.

Warby Parker is a great example of a company who has made their supply chain customer-centric. Cofounders and CEOs, Neil Blumenthal and David Gilboa, wanted to provide customers with high-quality, stylish glasses at a much lower price than competitors. They realized they could accomplish this through an integrated eCommerce platform and vertically integrated supply chain- thus cutting out the middle man and transferring savings to customers.

The success of Warby Parker not only hinges on its vertical-integration, but also its attention to detail and appreciation for the customer throughout the supply chain.

For example, Warby Parker has retooled the downstream supply chain- specifically those functions related to customer purchasing. Warby Parker incorporates a beautifully designed user interface with impressive technology that can measure the pupillary distance of the user right then and there. This combination of impeccable design with user-friendly technology appeals to the modern customer and allows for a seamless experience that makes shopping with Warby Parker more enjoyable than having to drive out to your nearest retailer.

Another important distinction of the Warby Parker supply chain is its free shipping to customers. This includes free shipping both ways on sample glasses so that customers can try on various pairs before ordering. All of this free shipping undoubtedly hits margin, but the Warby Parker approach assumes that by offering a nearly painless supply chain that clearly prioritizes the concerns of the customer, they will build a large and loyal customer-base.

Looking at Warby Parker and many younger consumer brands established in the last decade, it is clear the vertically-integrated supply chain model is here to stay, and investors are taking notice. The businesses architecting their operations in this manner, and doing it effectively, are proving that maintaining a lean but customer-centric supply chain is a key ingredient to success. The supply chain is no longer solely viewed as a driver of operating leverage, but also as a key component of enhanced customer experiences.

Thanks to Santosh Sankar for brainstorming this post with me.

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