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In spring 2020, many people became daredevils when it came to styling their hair. The coronavirus had arrived in North America, and salons and barbershops had temporarily closed or limited their operations. Consumers who had never considered such risky behavior as coloring their own hair went online to purchase do-it-yourself (DIY) dye kits and other self-care products.
Fortunately, the previous year Sally Beauty Holdings had embarked on a digital transformation to improve its omnichannel B2C and B2B customer experiences. The company wanted to drive higher sales and customer satisfaction by simplifying ordering and purchasing processes and offering seamless services to online and in-store customers.
As part of that initiative, Sally Beauty Holdings modernized its order management and fulfillment system with the IBM Sterling Order Management platform. The solution provides centralized, real-time visibility into and management of inventory, orders and fulfillment. It also helps streamline deployment of ship from store (SFS) and other digital fulfillment options. In addition, IBM offers the industry expertise and knowledge to help guide the company through a digital transformation.
Sally Beauty Holdings collaborated with IBM Business Partner Perficient Inc. to implement the IBM Sterling platform on IBM Cloud, which provides the scalability, availability and security-rich features to support diverse business lines and services.
By March 2020, the company had successfully completed several initial deployments on the new platform. It had launched the order management system, including ship-to-me functions, for sallybeauty.com and cosmoprofbeauty.com. It had also enabled online order fulfillment for Cosmo Prof direct sales consultants, introduced same-day-delivery (SDD) capabilities on cosmoprofbeauty.com, and piloted a SFS program for sallybeauty.ca involving 16 Sally Beauty stores in Canada.
Then, with the sudden arrival of the virus, Sally Beauty Holdings immediately considered what it could quickly do to meet surging online demand for DIY products while still delivering an optimal customer experience.
Within three weeks, the company enabled 2,700 of its 3,300 US retail stores to function as fulfillment centers. Essentially adding thousands of new shipping nodes to its US network, the company significantly increased customer satisfaction and sales.
Taylor describes the in-store execution of new SFS capabilities, including establishing and training new business rules for order distribution and transportation, as a complicated process. Capitalizing on its IBM Sterling Order Management solution, the team rapidly got the work done.
In April 2020, as some stores began safely opening back up, Sally Beauty Holdings also quickly piloted and then rolled out curbside pickup and buy online pickup in store (BOPIS) capabilities for most Sally Beauty Supply stores in the US and Canada. This model further reduced order splitting and shipping costs, while helping new customers become more familiar with store locations and product assortments.
More than a year after the pandemic began, the digital transformation at Sally Beauty Holdings continues. In the summer of 2021, the company introduced BOPIS options for cosmoprofbeauty.com. It is also in the process of deploying same-day, two-hour delivery for sallybeauty.com, and same day, three-hour delivery for cosmoprofbeauty.com.
Having deployed SFS capabilities for 2,700 US stores in just weeks, Sally Beauty Supply has made more than two million SFS shipments and increased sales by 540%. Also, 1,046 participating Cosmo Prof stores have fulfilled more than 42,000 SDD shipments.
With the IBM Sterling platform, Sally Beauty Holdings can now offer a truly omnichannel purchasing experience, empowering customers to engage with the brand through the avenues of their choice. By enhancing its online businesses with advanced fulfillment options, the company not only improved customer satisfaction but increased profitability.
And the journey continues for Sally Beauty Holdings. Taylor anticipates adopting IBM Sterling Fulfillment Optimizer with Watson software to further enhance the purchasing experience, including optimizing post-order processes by forecasting demand for inventory at fulfillment locations. The company will also look at how to better service salon professionals and field sales consultants through its Cosmo Prof website.
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