New App Generates 10x ROI in Revenue
Burns and his intern got the job done, completing an MVP (minimum viable product) app in about 500 hours, which was about one-third of the time he estimated for a conventionally coded app. Better still, it was in half the time he originally projected for the OutSystems work.
“It was clearly a speed-to-market situation, and it worked out great,” he said. “It put us in a great position going forward.”
The new logistics solution helps Burton move goods through its sales channels and avoid big inventory carrying costs. For instance, Burton employees use the app on either a tablet or touch screen when a warehouse runs out of snowboards, clothing, or backpacks. The employees can scour stores that have that inventory on hand and get the product sent to buyers quickly.
A little over a year into the implementation of the app, Burns says that it has averaged 56 shipments a day, kept pace for 14 days straight of 200+ shipments, and generated 10 times ROI in revenue. He said the company is maintaining historically low inventory, avoiding off-price store sales, and turning summer sell-offs into “shopping events” rather than clearance sales.
“We sell fun in the outdoors—but the inventory has to be there when people are buying,” he said. “Creating this app has helped us do this much better.”
Burton has since extended its retail presence to the EU with 4 flagship store openings in the last 2 years, with plans for 10 additional stores in Japan to follow. Burton will use the logistics solution to support sales in both regions.