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hoppy

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13/12/19

10:03

Post #: 41948331
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Originally posted by Holdtight: ↑

I asked DM why the LIFX.com site ran out of stock....See below his answer..

The measure of a successful retail business is not to "never run out of stock", but to ensure that maximum potential is realised with accurate forecasting. Overestimating demand can lead to significant wastage of transport costs and warehouse storage fees
Our forecasting was focused on ensuring the items we relied upon for net sell-through profitability were available. This is why we addressed potential demand with the bundle offers, and directed customer attention to them
To that end, LIFX.com was fully stocked in all bulbs and lights for the majority of Q4 with only a couple exceptions, which meant we forecasted well and minimized wastage on overages
The Black Friday, Cyber Monday weekend saw an unprecedented level of traffic and interest with a record number of sessions to the site. It was our website’s biggest weekend ever.
As the sales progressed, LIFX.com saw only three lights in total sold out over the BFCM weekend - the Mini White, the BR30 and the BR30+
On average, these bulbs cumulatively represent around 5% on contributed revenue when in stock. Of the LIFX range that makes up the other 95% of net sales, our forecast were sufficient to ensure we had stock available through Q4, inclusive of the upcoming festive trade
Supply chain management and inventory management are exceedingly complicated skillsets, and we have people expert in this, dedicated to making sure we have the optimum distribution of our products. I can promise you that I am not involved in this, because people whose careers are built around this skillset “have got it handled”
Finally – I saw some concern about Kogan. Kogan is no longer an authorized stockist of LIFX products (and hasn’t been for a long time). Any “out of stock” on their site is a hangover on their part from not taking down products they no longer sell.

I totally recognise the optics around seeing “SoldOut” markers on the website, but urge investors to realise that we have a teamof experts who are doing the best they can to optimize stock levels for ourLIFX.com business, while ensuring sufficient inventory gets to our retailpartners. They do a magnificent job, and have my full confidence.

Thanks, Dave.

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HT
I respect contributors like you who get on the front foot and go straight to the source to have questions answered..... and share them... Well done!
BUD Price at posting: 2.7¢ Sentiment: None Disclosure: Held
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