The danish baby carrier production company Danbaby, which produces baby carriers similar to the known Ergobaby 360 brand has used BI to step it all up a bit.
Instead of just selling their baby carriers in Denmark, they want to expand production and start selling on a global scale.
For a company of this size, it’s a huge step. A step that wouldn’t be quite as easy without a bunch of data to optimize everything. On of these tools is the Targit BI suite, which is used to minimize production costs, and to optimize shipping and logistics. Something that is suddenly becomming much more important for Danbaby.
With their new baby carrier – Baby Bæreseler they now have a product which is good enough to take up competition with the major brands like Babybjørn, Stokke and Ergobaby. But let’s take a look at how they managed to get into the global market.
Read more about Optimizing production of Baby Carriers
Increasing production while lowering prices on Baby Bæreseler
The most important thing for Danbaby was to lower the expensive production costs, and being able to scale the production level to fit the new demands. The local factory in Denmark wasn’t big enough to produce enough baby carriers, and the capacity couldn’t be increased enough to meet the new supply levels. So they started a new factory in Turkey, build on the latest technology and big enough to be able to produce 150 times the amount they produced on the old factory, and at roughly 65% of the costs.
They were able to do so, since the cost of building a factory of this size is much lower in Turkey, and because they could use all the Business Intelligence data from their old system to build a new optimized procedure.
Lower shipping costs on the baby carriers
Another advantage of moving the production factory of baby carriers to Turkey was that the shipping costs went down with about 20%. Using the Turkish shipping companies was much cheaper than using the Danish ones. A 20% lower shipping cost was something that could help bring down the price on their new baby carrier – Baby Bæresele, so that it could compete on a global level with the other more known baby carrier brands. Something that would prove to be quite the challange for a small company like this. Some of the other baby carrier brands are huge companies with tons of resources behind them, so it’s a tough marked to get into.
Finding the right places to sell the baby carriers
The next big step was finding some good global resellers. Amazon and similar sites was of course the first choices, but they also needed to get their products displayed in some of the big baby stores and many other stores selling baby gear. This turned out to be quite hard a task, as they didn’t have a brand most people knew about. But also here their data collection came in handy. Using historical data they could show the companies how well other stores had done with their baby carriers, and what kind of sale and profit the stores could expect, if they started to sell Danbaby’s products. This made it a lot easier to get a few of the bigger stores, such as Walmart to add their new baby carrier to their stock.
Here 14 months later, everything is going as planned. A lot of the good planing was also due to good use of BI management tools, which aided greatly in the project management, and in order to keep everything on track. The new factory is done and has started producing the first batch of baby carriers, which should soon hit the various stores around Europe and later this year the US.