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Streamlined business processes and secured sustainable market penetration

The client was an early-stage e-commerce platform from
KSA selling premium sneakers to millennials and gen Z.


The company wanted to be known as a go-to destination for premium sneakers in KSA and spent significantly on marketing to achieve its goal. The company partially succeeded in creating a buzz in the market which was reflected in its growing M-o-M GMV (Gross Merchandise Value) and monthly visitors growth. Despite achieving an attractive top line, the company had a negative NPM (Net Profit Margin) which kept on accumulating despite several measures taken by the client.

Bizcon was hired by the founder to guide on how to proceed to improve profitability and attain sustainable growth.

Client Context

  • The Middle East, particularly Saudi Arabia was adopting the European and the American sneaker culture leading to a surge in demand for premium quality sneakers across the region.
  • The company was involved in selling premium sneakers via its web platform. Owners started with an Instagram page and, after receiving an overwhelming response from buyers they decided to go big.
  • The company used to procure sneakers like Puma, Balenciaga, etc. from authorized distributors in Europe.
  • The company had a fully functional warehouse and an in-house inventory management team.
  • The company had outsourced logistics activities. Apart from logistics, the company had an in-house team for all activities.

BIZCON’s Approach

Our approach to identifying the gaps and providing impactful solutions included

  • A careful and thorough examination of various existing operational processes was done by visiting the warehouse and client workspace and monitoring the key activities at regular intervals of time, which included product planning and purchasing process, product storage and fulfilment process, outbound logistics, aftersales process, and interdepartmental communication process.
  • Client’s operational data were gathered and analytics was used to develop a meaningful insight into all the crucial junctions of the business process. A time series, as well as a cross-sectional analysis, was done to understand the activities’ performance throughout the operational period. Detailed comparative analyses of the client and industry were also conducted to understand client performance as per industry benchmarks. CAC, ROI, NCPO, etc. were a few of the parameters considered for analysis.
  • The elaborative qualitative and quantitative assessment has helped us identify the business bottlenecks that were hampering the company’s bottom line and assisted us to develop a robust and customized strategy framework to improve profitability and achieve incremental business growth.

The Result

From the analysis, it was revealed that the company’s business processes were ineffective. Its SCM process was inefficient, its customer acquisition process lacked monitoring and its customer support service was closed to monotony.

Our analysis also revealed that there is a huge communication barrier between departments, departmental as well as individuals roles and responsibilities were not defined, the company lacked a standard operational procedure and the company was yet to establish a proper IT infrastructure.

Furthermore, there was no established process to capture data for a few key activities like inbound logistics, OFD (Out for delivery), and damaged products. The procurement department lacked data to do efficient demand forecasting leading to dead stocks. Moreover, the procurement department had no fixed budget.

All these factors collectively were eating the company margin and creating a cash crunch. Based on our findings of business bottleneck and founder objective we develop a five-point strategy to turn around the business. We developed a fully customized strategy to increase sales, cut down costs, improve operational silos, and provided extensive training for transformational change.

  • We created an order conversion funnel and established matrices to monitor the conversion rate. We had also established a framework for customer expectation management intending to increase NPS.
  • Proposed a central tracking system integrated with ERP for effecting data recording and data flow.
  • Defined organizational structure and assign roles and responsibilities to departments and individuals.
  • Established departmental SOPs and KPIs.
  • Financial framework to keep a check on the RoCE and become agile in taking preventive and growth measures.
  • Proposed growth strategies and tools for sustainable growth.

The Decision

Adoption of recommended solutions will lead to:

Future-proofed our client’s business.

Our deliverable provided the client with detailed insight into their existing business process. We also helped them in developing a system to acquire customer information in detail for better customer segmentation and targeted marketing

Improved cross-department collaboration

Our work also helped the client improve cross-functional alignment. As a result, the client could present itself as a progressive venture to its customers and suppliers

Clear framework to guide business process

We develop a fully customized framework to monitor the minutest of business processes from placing orders to the supplier to supplying products to customers and after-sales service as well. This improved productivity at the corporate level and aided prudent decisionmaking

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With a powerful mix of research and consulting capabilities, we partner to contribute towards the growth of your business by turning market insights into purpose-driven strategies.

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