SEKO Logistics Is Instrumental in Guitar Amp Maker’s Growth
Bad Cat Amps, a boutique guitar amplifier manufacturer, partnered with SEKO Logistics to address their distribution challenges in Japan. Traditionally reliant on a distributor, Bad Cat faced issues with brand control and inventory management. SEKO Logistics provided a comprehensive solution, integrating Bad Cat into their global B2B and DTC network. This partnership allowed Bad Cat to maintain brand control, ensure stock availability, and streamline operations, ultimately boosting their growth and sales in the competitive Japanese market.
William Carlin
26 Jul 2024 4:40 PM
The Challenge For Bad Cat Amps
Bad Cat Amps, which traditionally worked with a distributor, learned this practice can create a distance between the supplier, retailer, and potential customers—ultimately resulting in stray branding and inventory dependent on biased preferences and budgets. In Bad Cat’s case, this disassociation nurtured the loss of brand control in one of the most critical and competitive musical instrument markets.
Faced with the alternative of selling directly to retailers, Bad Cat Amps lacked the capability to manage the necessary logistics, along with back-stock capacity in a country where physical space is at a premium. While some of the biggest brands can maintain distribution centers in Japan, this isn’t feasible for smaller companies like Bad Cat. Despite their size, Bad Cat had ambitious growth plans and needed a third-party logistics provider (3PL) with a global logistics network to help them scale. They required a way to distribute products in Japan that enables the team to maintain brand control and ensure superior service and stock availability. The rise of direct-to-consumer (DTC) sales in Japan presented a growth opportunity for Bad Cat’s premium brand.
Beyond enhancing their reputation, having all SKUs ready to ship throughout the country within 24-48 hours creates a competitive advantage and secures valuable sales opportunities. Therefore, their distribution strategy required a logistics partner capable of handling both business-to-business (B2B) and DTC sales.
The Solution: SEKO Logistics
SEKO Logistics, a company founded on being small enough to care and big enough to scale, helped Bad Cat develop a winning distribution strategy, providing comprehensive support from fulfillment to final mile in Japan. By integrating into SEKO’s global B2B and DTC network, Bad Cat boosted their growth while reducing the external companies within their distribution network. Streamlining their operations allowed Bad Cat to surpass their total sales from the previous 18 months with just one retailer.
Despite Bad Cat’s initial low volumes, their premium product, which is heavy, handmade, and relatively fragile, requires secure transport overseas. SEKO’s expertise in delivering secure, customized logistics solutions for high-tech and high-value products enables Bad Cat’s customers to receive their shipments in pristine condition.
The partnership is constantly evolving to promote growth and efficiency. From onboarding Bad Cat to electronic data interchange and data connectors to integrating their ERP with SEKO’s custom WMS to create a seamless outbound process, SEKO serves as a valuable source beyond their role as a logistics service provider.
With support from SEKO, Bad Cat can focus on making killer guitar amps that inspire their customers and trust that new product launches will be enjoyed by musicians around the world.