CLIENT: ShopKick – SK Telecom // PRODUCT: i-beacon Bluetooth enabled transmitter
D-TERRA SERVICES: Re-engineering, Manufacturing and Supply Chain
The Opportunity
Shopkick is a Silicon Valley company that created a shopping app for smartphones and tablets that offers customers rewards for walking into stores. It uses points called “Kicks” which are awarded when users walk into participating stores. The app is available for iOS and Android devices. Partner stores include Target, Best Buy, Macy’s, Crate & Barrel, Old Navy, American Eagle Outfitters, Sports Authority, Toys R-Us, Exxon, Mobile and Simon Malls. The program is also supported by 70 brands which currently include P&G, Unilever, Mondelez, Colgate, Revlon, Disney, Levi’s and HP. Early efforts of the company had led to manufacturing cost overruns, quality and delivery problems, so it was looking for a manufacturing solution for the transmitter that would optimize True Cost of Ownership (TCO) by reducing cost and correcting quality and supply issues.
The Solution
Over 13 million people love shopkick, we do too!
Shopkick came to D-Terra and wanted a better manufacturing solution for the i-beacon transmitter. D-Terra developed and implemented engineering, manufacturing and supply chain solutions to greatly improve product quality, cost and delivery. We did this with an emphasis on speed to market.
The Strategy
D-Terra’s Product Commercialization Strategy:
- Identify and manage a stable manufacturing solution, eliminating costly processes that resulted in JIT from China
- Establish a final test process to allow shopkick to review and approve shipments real time
- Provide ongoing program management
- Optimize supply chain
The Result
- Manufacturing costs were brought under control and TCO improved
- A web-based solution provided real-time visibility of test results for shopkick review and approvals
- D-Terra now delivers to major U.S. retailers eliminating the need for warehousing and distribution
- D-Terra provided product launch and execution expertise allowing shopkick to focus on their core competency (X-Factor)
- Shopkick has seen over 1 billion in-app deals and offers viewed, and over 5 million walk-ins to partner stores, doubling in the first four months
- Shopkick was ranked the most widely used an most engaging shopping app in the world by Nielsen in 2012