DW8 (ASX:DW8) exits consumer fulfillment to focus on B2B business – The Market Herald | So Good News
- DW8 (DW8) has a marketplace for customer fulfillment services to target its business-to-business (B2B) customers.
- The decision follows a technical review by recently appointed CEO Steve Voorma, who based the move on DW8’s financials and operations and discussions with customers.
- DW8 says the implementation of its Kaddy platform will also be established as a sustainable B2B warehouse and service provider for the beverage industry.
- The change will save the company $5.7 million a year and reduce business complexity and free up warehouse space for B2B orders.
- DW8 shares were down 16.67 per cent to 0.25 cents at 1:01 pm AEDT
DW8 (DW8) has decided to move away from all customer satisfaction services and focus on its business-to-business (B2B) customers.
The change follows a technical review by CEO Steve Voorma, who was appointed to the role in early October after longtime CEO Dean Taylor resigned from the company.
Mr Voorma reviewed the business’s performance and performance and consulted with customers before saying DW8 needed a “significant review” of its key offerings.
DW8 uses the Kaddy platform, which includes market, region and fulfillment levels. Following the restructuring, Kaddy Fulfillment will be repositioned as a B2B warehousing and logistics service provider for the beverage industry.
“Our business has great potential, and there is a real market opportunity for us to reach the B2B sector. However, this requires significant changes at several levels through the business,” Voorma said.
“Based on my experience in finance, I can see the cost savings that can be achieved by exiting the consumer group and addressing the challenges in the remaining B2B business that will lead to rapid change as we move to focus on retail buyers and sellers.”
By abandoning customer fulfillment services, the company expects to save $5.7 million in annual operating costs, and reduce the total cost burden until the last quarter of FY23.
Another benefit of the change is that DW8’s warehouse has been freed up to accommodate B2B orders, while its national distribution center in Albury has been repositioned as a warehouse for larger customers and the South Australian warehouse has been repositioned as a B2B fulfillment centre.
DW8’s exit into the consumer fulfillment business will take place immediately, and final consumer deliveries will be made by 7 February 2023.
DW8 shares fell 16.67 per cent to 0.25 cents at 1:01 pm AEDT.