Engagement Summary
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Benefit: Vertical integration and flexible material planning system implementation.
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Industry: Online Consumer Creative Services
Engagement Detail
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Shutterfly is an Internet-based company taking on the industry’s Goliaths - Walmart, Kodak, HP, and Walgreens - by providing a portfolio of on-demand products from digital camera images. It must reliably deliver innovative, top-quality products to grow its loyal customer base. The biggest challenge is to provide this premium service during the chaos of the “make or break” 4th quarter every year—50% of annual revenue is produced by seasonal manufacturing resources 8 times the non-seasonal size—so that Grandma always receives her flawless, one-of-a-kind Christmas gift made with treasured pictures! Shutterfly is now the acknowledged leader in its industry, providing personal memories publishing services for photographs, calendars, albums, books, greeting cards, and merchandise.
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Shutterfly’s success can be measured in part by:
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Successful IPO and stock outperforming NASDAQ index
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Sales growth of approximately 50% per year
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67% increase in stock price while competitors’ stock changed +27% to -14%
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Specialized manufacturing capabilities and vertical integration supplies the needed agility and control to succeed—ensuring quality, flexibility, product availability, and reduced costs. TRG contributed to Shutterfly’s success by:
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Establishing flexible material planning system to support growth
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Establishing responsive supply chain business processes meeting quality, cost, and availability requirements
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Negotiating contracts and managing supply chain throughout critical Q4
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"Shutterfly was very pleased with the results driven by the work of TRG; they helped us deliver an incredibly successful Q4, marked by on-time order fulfillment and most importantly, happy customers."
Jeannine Smith, Senior Vice President of Operations