How does one determine the optimal limited shelf-life inventory to hold upon transformation to a fully-online business?
How does one determine the optimal limited shelf-life inventory to hold upon transformation to a fully-online business?
In 2024, The Sill, a business selling a wide range of plants, made the decision to close its last standing retail store, committing to becoming a fully online direct-to-consumer retailer. In making this change, The Sill is taking a strategic risk and undergoing a major transformation from the former structure of managing 12 physical locations, a move prompted by the supply chain disruptions caused by the covid-19 pandemic. Top of mind for Eliza Blank, the founder of the Sill, are the changes that she must make to increase operational efficiency as The Sill expands product range and go fully online, including those related to procurement, inventory management, and financing. In this case, students will learn about entrepreneurship and strategic pivots as a young business owner grapples with both demographic changes and other forces that affect its sales channels. Students will be asked to analyze data related to demand, pricing and salvage value, and make quantitatively-supported inventory management decisions.