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ACW472: MANAGEMENT ACCOUNTING AND

CONTROL

BUSINESS PLATFORM:
DIRECT TO CONSUMER (D2C)
No Name Matric No
1 Jevethra Mahendran 138321
2 Mohamad Amirul Adli Bin Amir 138340
3 Noorazira Binti Azir 138355
4 Norain Natasha Binti Noorazmi 140178
5 Siew Mei Qi 138385
6 Soo Mei Chen 138390
Table of Contents
Introduction ................................................................................................................................ 1

How D2C affect accountants and managers .............................................................................. 3

Conventional function and limitation of D2C ........................................................................... 6

New Requirement of D2C ......................................................................................................... 8

Changes in D2C ......................................................................................................................... 9

Impacts with Regards to These Changes ................................................................................. 10

Challenges of D2C ................................................................................................................... 11

Conclusion ............................................................................................................................... 13

References ................................................................................................................................ 14
Introduction
During earlier 2020, there was a breaking news by World Health Organization (WHO) stating that
our world is being attacked by coronavirus outbreak that spreading across the world. This pandemic has
brought many changes to the ways organizational activities are conducted. Along with advancement of
technology that comes with IR 4.0, business landscape in Malaysia can implement D2C brand of
business. D2C is an abbreviation of direct-to-consumer. Companies that use direct-to-consumer type
means that they sell their own goods that they produce themselves directly to customers without using
the middleman such as retail stores, wholesalers or other brokers. This style of business eliminates the
necessity for distributors and other steps that occur between consumers and the products they want. The
direct-to-consumer strategy is fast becoming a popular route for manufacturers to enter the market
directly instead of through a middle-man entity. Using D2C means that the companies also will manage
the entire process from manufacturing to marketing, selling, shipping and service. D2C helps to reduce
the price of products for customers and to keep control over manufacturing, warehousing, marketing,
sales and distribution of products.

Nowadays, we are living in the era of technology and since Malaysia is moving towards digital
and technology platform business, D2C is focusing on web presence and online shopping environment
as the primary way to engage with consumers. In addition, the rising of apps of online banking and
others cashless payment make this D2C more relevant to be implemented in our country. These channels
may be an e-commerce platform, social media and even own retail stores. Some of them launch physical
retail stores so that consumers can see and try the products before purchasing.

Traditionally, manufacturers would sell their products to a retailer, who would then sell them to
customers. Before this pandemic COVID-19, usually customers can go physical to stores to buy
products but since pandemic hit world, many physical stores were forced to close when virus detected,
need to limit opening time, and government encouraging people to apply one metre social distancing.
Hence, the need for online shopping had rapidly increasing. On top of the pandemic, the efficiency of
the direct-to-consumer model is helping to further drive retail shifting to the online platform. Now,
customers can buy directly from company’s website and the reliance on physical stores is less relevance,
making it practical to skip the middleman and sell direct to customers. This D2C also will brings the
company closer to its target audience.

Customer interest in the long-term success of any organization has long been a key theme in
discussions in the business sector. Competitive companies have found their clients an opportunity to
leverage their results. It is acknowledged that all businesses have customers, but these customers cannot
be retained forever if the company fails to meet their needs (Atkinson, Banker, Kaplan, & Young, 2000).
For Gupta & Lehmann (2006), customers are important assets of a company and represent the reason

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for the existence of any organization. In addition to implementing such a strategic approach, as shown
by Peppers & Rogers (2005), explains that it is possible to take into account that customers are different,
make it possible to understand clearly the needs and requirements of their products and services and
enable companies to respond adequately to their value propositions (Desarbo, Jedidi, & Sinha, 2001).
By using the D2C process, a business can further strengthen the relationship with the customer because
the manufacturer will deal directly with the customer. In this way, customers can express their opinions
or reviews about the product directly to the manufacturer so that the manufacturer can make
improvements.

Every business process has its advantages and disadvantages. Problems that may be encountered
when using the D2C process are D2C will expand liability risk because selling directly to consumers
introduces new exposures to the manufacturer that wholesalers or retailers typically take responsibility
for as part of a third-party contract agreement. For example, running an e-commerce store would cover
the liability risks of new products related to labelling and shipping or the accompanying cyber and
general liability risks.

Then, it will heighten the cyber risk because D2C operation necessarily requires handling sensitive
customer and financial data, making cyber-security a major concern and priority. Security breaches do
not cause business reputation to be compromised let alone if customer information such as credit card
or debit card data is known.

Other than that, competing with retailers. The use of the D2C process challenges manufacturers to
compete with retailers because retailers have more in-depth experience in the field of marketing. They
also have experience in making sales to their customers.

Finally, the D2C process is likely to encounter problems in terms of supply chain complexity. By
selling to consumers makes the supply chain more complex, with additional points of vulnerability
where disruption could impact the entire business. For example, previously manufacturers only need to
make deliveries to retailers or some partners, but after using the D2C process, manufacturers need to
make deliveries directly to the customer's home causing higher risks such as damage and loss during
the posting process.

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How D2C affect accountants and managers

It goes without saying that changes of external business environments bring impacts to the
company whether directly and indirectly. Issues such as environmental issues, advances in information
technology, global competitive environment as well as the Covid-19 pandemic change the nature and
plans of the business. As a result, management from an organization needs more accurate and different
forms of information in deciding their business strategy, plans and objectives, thus, increasing the
requirements and needs from management accounting practices. Moving forward, in this study paper,
we will put our focus on how direct-to-consumer sales (D2C) as well as business environmental issues
affects management accounting practices and the role of accountants and/or business managers.

Business experienced shock from the pandemic Covid-19, due to unavoidable operating fixed
cost, businesses are forced to close or downsize their organization structure by firing some of their
employees. Meanwhile, disruptions from the supply chain have caused delays in the distribution of raw
material and thus causing lower rates of delivery on time to customers. By recognizing the urgency in
adapting this environment changes, organizations begin to move their business platforms to the online
platform by using information technology to support the business activity. Although e-business or
internet commerce are not bold in this digital age, however it is really challenging for some traditional
businesses to transform and perform their business activity online. Thus, it is especially important for
management accountants to recognize and adapt the changes of the business environment, creating
value to the business using available resources while reducing wastage within the organization.

Meanwhile, the idea of direct-to-consumer sales (D2C) has started to be implemented, the
uncertainty situation led companies wish to have full control over their operation, by starting to sell
directly to customers instead of through any retailers or wholesalers. It may be quite new business
practice in Malaysia; however, it is worth mentioning here to provide a more in- depth understanding
of this new operating business idea. The new business model which directly sells the manufacturer’s
product to the end customer without any intermediaries has brought impact to the organization strategy,
mission, as well as objectives formulation and thus affecting the performance evaluation process which
requires management accountant having a more comprehensive analysis of this idea.

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First things first, the idea D2C has led the manufacturer company demanding more information
regarding their marketing strategy, distribution platform as well as information relating to the end-
consumer. Diagram above provides brief ideas about the value chain of D2C, which is having a huge
difference with traditional manufacturer business. The value chain represents the linked set of value
creating activities from raw materials obtained from suppliers to the ultimate consumer goods which
are delivered to the customers. Having a comprehensive value chain analysis assists the company
identify, analyze, coordinate as well as optimize linkages within the value chain. Management
accountant analysis value chain of the business to provide direction to organizations in identifying value
added activities as well as non-value added activities. By viewing the value chain from the customer
perspectives, with each link being seen as the customer of the previous link, information components
in D2C manufacturer are huge and complex when compared with traditional manufacturer business.
Instead of bulk purchase from wholesaler and retailer, the D2C idea is directly involved in marketing
and distribution activity to each of the customers. Business managers and management accountant need
to consider and handle other incurred costs such as delivery fees, information system maintenance cost,
warranty promises as well as after-sale services expenses to each of the consumers. When all this
overwhelming cost data comes to the organization, it is especially important for manager accountant to
begin cautions while also said to “resist the temptation to put focus on the information factors that have
only minor importance which defeats the purpose of management focus on the items which are truly
critical to long term competitive success.” (Thompson and Strickland, 2003, p. 108). Cost management
could be said to be more crucial in D2C business because it enables a manufacturer company to
restructure their strategies by putting focus on customer value instead of only fulfilling the order from
wholesalers. Identifying each cost details helps the company remain competitive by offering
comparable prices to customers while creating brand value.

“There was already a shift towards being future-ready as it has been accepted that automation
is not just coming; it is already here and will only increase and evolve very quickly.” -Dr Josh Heniro
said. Industrial Revolution 4.0 era taking business go further with their original strategy, while

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businesses are transforming or evaluating their operating models by embracing intelligent automation,
cloud-based accounting solutions as well as machine learning. While the cost information component
in D2C business is huge, advances in technology assisting management accountant reduced time for
data processing and gathering and thus providing more reliable and efficient information for creating
brand value. At the same time, D2C business is also enjoying the competitive benefits when stepping
into the IR4.0 era, which technology plays the main role in the business nature. Signature Market, a
Malaysia-based marketplace which operates in a D2C business model, they are providing healthy
natural products with affordable prices and aims to be accessible around the world. Signature Market
generates their product ideas from online surveys, marketing products through websites, launching to
the digital market, handling online payment while handling customers complaints online. It may seem
to be familiar with other online businesses, however, all operations activity in Signature Market are
implemented online by using available technological resources, in a D2C manufacturer business' view.
“Wholesome foods, Wholesale prices.”. Signature Market’s slogan indicated that the D2C idea has been
perfectly embedded into their strategies and slowly turned into their competitive advantages. There
must be some pros and cons no matter which business model is using, however, it is undeniably true
that D2C ideas stand in a position which are directly benefited from the advances of technologies such
as cloud computing which makes the business seamlessly incorporated in people’s life.
On the other hand, business managers and management accountant facing challenges about the
performance management system to be implemented in the D2C ideas. Intellectual capital such as the
brand’s reputation as well as popularity in networks are hard to identify, measure and report on the
value. Performance management may need to be restructured when the Key Success Factor (KSF) is
not only about cost saving to enjoy economies of scale or obtain manufacturing efficiency, but the focus
may also move to the customer satisfaction, branding position as well as rate of introducing new
products. Management accountants need to revisit the performance management framework and
identify what really matters to the organization. Issues such as organization structure, key success
factors, vision, and mission as well as strategies and plans. “It is, at a minimum, a constraint on PMSs
design and use, and in the longer-term a necessary issue that requires specific consideration as
organizations grow and develop.” (A. Ferreira, D. Otley / Management Accounting Research).
By recognizing the performance needs in PMS, REVELOT(a D2C business which produces
wallets and watches) are putting efforts in improving customer values in formulating their strategies.
After analyzing the market information, the business flourished the market with the ideas of celebrating
Christmas by launching XMAS GIFT IDEAS which combine their watch and wallet in a package with
more affordable price to customers. They have placed their shoes on the consumer’s point by also
providing the Complimentary Christmas Ribbon Wrapping which enhances the brand’s value in
customers mind in the sense that people are hard to go out and prepare presents for their loved one
during this pandemic period. Various types of online payment methods are available such as using
digital wallets and on time shipping to each of the consumers is guaranteed. It goes saying that

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management accounting has played an important role in building the D2C brand's value, by
emphasizing the idea that they are able to bypass the middleman and bring down the price of the
products while believing that everyone should be able to afford premium quality products without
burning a hole in the wallet. REVELOT promotes and demonstrates the importance of branding matters
and customer satisfaction about a D2C manufacturer business while boosting their existing products
sale. All these efforts indicated consideration in PMS will serve as the basis for the company,
influencing participants behavior and eventually bringing the business achieve higher performance.
Nevertheless, performance management systems in normal manufacturing business are not
comprehensive enough to apply in the D2C. The challenges for management accountants will remain
exciting as the company makes customer satisfaction an overriding priority which requires the whole
value chain to exert their biggest potential. Being able to implement control, measuring results,
compared with budgeted benchmarks and rewarding excellent performance will be the numerous big
questions to the business managers as well as management accountants. For example, a D2C business
is saving cost by decreasing other intermediaries' involvement, however they might be facing increased
delivery fees which were previously absorbed by bulk purchase from wholesalers. This scenario may
raise concerns to the management accountant to reconsider the plans and objectives formulation within
the organization in different layers.

Conventional function and limitation of D2C


D2C is a business model based on the sale of manufacturer’s products to the end customer
without intermediaries which is the manufacturer will deal with their customers directly, hence they
able to strengthen their connection between them and customers. D2C is relevance in this day because
people nowadays had changing into people who able to find the source of the product itself and
believing that when they buy from the company itself, they can secure the quality and originality of the
products. All of this because of fast changing of technology where people able to search and find the
source through websites and apps. As a business, they must adapt and go with the flow in order to gain
more profit in future. Other than that, due to pandemic Covid-19 a lot of retailers shop need to close
because government need to control the spread of virus, hence many of them use the online platform to
get in touch with the customer. Besides, consumers nowadays expect to be able to go directly to the
source when research for products or brands, or when making a purchase from specific brand. D2C
approach able to let manufacturers increase their bond with customers and gain more trust from their
customers when they able to provide a platform for customers to look for their products.

Moreover, D2C able to help manufacturer to deliver their value to his end-user customers.
Customer nowadays are changing into a person who always need assurance of their products. Whenever
they buy any products, they would prefer a product that is not fake hence they prefer to buy product
directly from the shop. D2C approach can help the manufacturer or the company to strengthen their

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bond with customers and deliver their valuable products to the customers. Companies who intend to go
with D2C they also need to think about their retailer who distributing their products, hence the
manufacturers may sell some products under retailers and some product customers can buy directly
from the manufacturer. This can be a win-win situation for both companies, besides the manufacturer
able to deliver their product value to the customer itself. For example, Nike brand who have a website
whereas they let customer to other customize shoes directly from them.

Despite of conventional function had mentioned, D2C also had limitation whereas those
retailers will be affected if the manufacturers completely change to D2C in instant. D2C platform cannot
change on the spot because many companies will get affected. It can create conflict between the
manufacturers and retailers hence it is important for both parties to reach the agreement (Alva
Andersson, 2020). Besides, there will be increased of difficulties with channel coordination and the
communication between them are very important to consider. This happened because the manufacturers
trying to do multichannel strategies which is they trying to interact with costumers in more efficient
ways. Hence, they need to eliminate their third parties and directly communicate with their customers.
All of this may can achieve if the environment itself had change into a place where the customer no
need to walk into shop anymore which is happening in this pandemic days.

Furthermore, the manufacturer needs to increase their number of department and workers. It is
important to have a strong organization who can hold and handle the companies to go through all the
process. A lot of complicated thing need to be clear between the departments since they will directly
deal with customers. The companies also must be competent in marketing and need to able tackle their
customer’s heart. Marketing is their new line in their business whereas they need to improve and have
a strong marketing way in order to connect with their customers. D2C would be hard if the company is
a manufacturer who used to sell their products in traditional ways, hence they need to adapt first and
did not instantly change to D2C if they intended to approach this way of business in future.

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New Requirement of D2C
The Direct-to-Consumer (D2C) strategy is rapidly becoming a famous route for direct entry
into the market by manufacturers and CPG (Consumer Package Goods) brands instead of through a
middle-man agency. With the retail outlets closed for long periods due to the outbreak of Covid-19,
consumer product firms have had to re-examine their strategies for online direct to consumer more and
more. Some are seeking new opportunities to create better, more resilient business models for D2C
online that will sustain them during the current economic downturn (Buchanan & Passet, 2020).
Moreover, the consumer lifestyle has been permeated by digital technologies. Today’s customers are
mobile-empowered and better educated and informed than ever before. They are also accessible through
social media and highly influenced by them.

There are many advantages of going directly to the consumer, just to name a few, D2C removes
the barrier between the manufacturer and the consumer, allowing the manufacturer to have more
influence over its brand, image, promotion, and sales strategies. Moreover, it also allows the
manufacturer to directly engage their clients, and therefore learn from them. However, the D2C business
need to adapt to some new requirements due to the pandemic as well as to meet consumers’ needs and
desires at lightning speed using IR 4.0.

The main requirement needed by a company if it initiated in shifting to D2C is establishing an


IT department to form an effective information system such as ERP in order to keep a large number of
information such as product detail, consumer detail and many more. It must be capable of allowing all
facets of D2C operations to be handled by employees such as invoice management, order dispatch,
returns, and part-shipments. In order to achieve operational and cost efficiency throughout the company,
the manufacturer or producer must make sure that their system is integrated and connected to each other.
For instance, the company must link the core ERP system to their D2C platform and systemically
manage the entire business process, including stock management, customer orders, supplier orders,
cash, invoices and many more. (Mark Taylor, 2020)

Besides, online consumer expectations are growing all the time, so keeping track with the latest
technologies such as live chat is crucial. This was once an automated client and customer service
assistant messaging system. Today, a supported Artificial Intelligent (AI) based live chat is more likely
to be automated customers helping bots communicate, which results in providing the consumers with
much faster response times and clears workers for other tasks. Along with updating the system, the
company should also make sure that the system is safe and secured to prevent from hacking or leak of
manufacturer’s as well as customers’ information.

Besides, for companies looking to switch to a D2C model, must make sure that the company is
100% ready to shift from wholesale to D2C. This will include investing in training and enabling their
staff, changing the existing processes and creating new ones, and generally ensuring that their business

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is able to function under the D2C model effectively and profitably (StackPath).Since D2C uses different
business model approach where they sell a product or service directly to consumers instead of using
intermediaries such as distributors and retailers, the manufacturers need to start looking after their
marketing strategies and sales strategies which often requires hiring a whole new team.

Changes in D2C
The traditional retailer business model becomes D2C e-commerce when the manufacturer or
producer directly sells its products to the consumers from their web store. A more conventional business
model for retailers varies from suppliers to wholesalers, to dealers to retailers, and then eventually to
consumers. Research has also shown that 55% of customers prefer to shop directly with the producer
of the item over distributors. The conventional business model for retailers deals with the bulk sales, so
they will have to start selling individuals goods for a manufacturer to start selling direct-to-consumer.
This is basically why most manufacturers have not yet moved to a D2C approach, as their entire
company revolves around the bulk sale of goods. (What is D2C e-commerce?: E-Commerce Terms,
2020)

Furthermore, the manufacturers need to get the full control of all their activities by creating an
omnichannel experience for their end-consumers. “Omni” refer to “all” therefore, omnichannel strategy
is one that uses all marketing channels with the customer at the center. The consumer can use any type
of medium, such as social media or website, in this customer centric approach, and the buying
experience will be smooth and consistent. Manufactures need to concentrate on the consumer
experience with omnichannel marketing, and every channel they have available to that customer should
engage the customer and provide their brand with a consistent outlook and voice. The manufacturer
should build an unbreakable relationship between their brand and customers.

Moreover, D2C companies start developing their products as digital experiences rather than a
product a customer would first encounter in a traditional retail store. As there is no urgent need to have
inventory or a retail distribution system in place, the cost of market entry is much smaller. D2C also
need to adapt to one-to-one experience which makes the customers to read review first in order to make
decision on whether or not buy a product (How Direct-to-Consumer (D2C) is Changing the Face of
Retail, 2020). Brands bringing their D2C company internationally would face particular country
specific challenges that need to be prepared for in advance of any store build work. Given the relative
complexity of selling to consumers in these markets, some foreign countries such as Chine, Russia, and
Brazil, will require some very specific planning.

The improvements to goods and services are guided by customers. This modern way of
developing a business is at its most fundamental, ensuring that the brand and the individual target client
grow together in a way that is mutually beneficial to both the organization and customer. The idea that

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a single data point will connect with a brand and that the business as a whole can then and will optimize
for that person is a fantastic step forward in the evolution of retail and the quality of life of the consumer.

Impacts with Regards to These Changes


By implementing this D2C business model, manufacturers will have full control over the entire
brand experience, brand image, brand name and reputation which include their products, packaging and
messaging. Manufacturers will not rely on anyone else to present or introduce their products. They own
the relationship with their consumers and can nurture it by from time to time. Besides, manufacturers
will have more power on their marketing efforts and sales strategies as well as consumers’ experience
from the research phase to purchase made. Selling direct-to-consumers can not only make sure the
quality of products and packaging, but also to ensure that the pricing is up to manufacturers’ standards.

Next, direct-to consumers (D2C) helps manufacturers to have better understanding on the
consumers demographics as manufacturers will have the chance to interact more with their own
consumers compared to traditional business model that rely more on the middleman or retailers. D2C,
at the same time also means that manufacturers will have an open line of communication with their
customers consumers. Since D2C enable manufacturers to interface with their consumers, they can
collect first-hand data, valuable consumers insights about trend of buying, preferences based on regional
and positioning of a product. Manufacturers can also gain the power to educate consumers and learn
more about what they actually need and wants, and this helps manufacturers to adjust their products
better for future based on the needs and interests.

Moreover, direct-to-consumers can help manufacturers to save some extra and unnecessary
costs by cutting out the middleman, retailers or other supply chain processes. Without any third-parties
channel coordination, seasonal delays or other retail’s interruptions, manufacturers can make their
products changes and get into the market faster and rapidly. Besides, D2C not only helps manufacturers
in cost-savings but also help to improve engagement between consumers. Buyers will love and fall for
it when one brands interact with them directly. For example, after consumers done purchase or already
made payment for a product, they will receive an email regarding the products inquiry or feedback or
some caring letters or guidance to use the products. This make consumers feel safe and happy to use
the products. (6 Brand Benefits to Selling Direct-to-Consumer Now, n.d.)

However, even though direct-to-consumers business model bring lots of positive impacts where
manufacturers have full control over their brand image and name, it also shows some new risks and
disadvantages to manufacturers. Implementing direct-to-consumers can affect in increasing of cyber
risk. D2C business mode requires handling some sensitive consumers’ information and financial data
which makes cyber-security a major focus, concern and priority. A security breach will disrupt business
as well as harm a manufacturer’s reputation especially if a consumer’s information such as credit card
data or debit card data are compromised.

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Furthermore, selling products using D2C business model can caused the supply chain to
become more complex as too many consumers are involved in this. Due to D2C, instead of making few
large shipments to only a several partners, a manufacturer is now responsible for the delivery of
thousands of packages to consumers’ doorsteps as well as risk that comes directly or indirectly with it.
(The Benefits and Risks of Direct-to-Consumer Strategies in Manufacturing, n.d.)

Challenges of D2C
Implementing direct-to-consumers business model is not as easy as what we think. Manufacturers
actually faced a lot of challenges and difficulties while implementing this new business model.

The business model of direct-to-consumer is very different with the business model of business-to-
business. In the traditional business model, the focus is to develop a good relationship with clients or
specific industries while the main focus for D2C is to ensure that the consumers can make purchase of
product easily and successfully without any issues. Manufacturers need to ensure that the consumers
can make a purchase easily without any help in their website. The website should be checked and tested
for few times so that no problems will occur. By doing this, manufacturers can ensure that their revenue
can be generated, and targeted profits will be achieved.

Besides, due to lack of experiences to deal with consumers and market, manufacturers may face
some problems to compete with middleman or retailers as they are new learner in maintaining good
relationship with their consumers. Different with middleman or retailers, where they already have the
knowledge and know the tactics on how to build a good relationship with consumers since they are in
the markets for many years. When a manufacturer is implementing this D2C business model, consumers
satisfaction will become their focus as it is really an importance metric to maintain their organization
performance. However, it is impossible for manufacturers to satisfy every consumer that purchase or
used their products. Setting up a strong customer service department can help manufacturers to build
relationship with consumers and avoid any negative or unpleasant reviews and at the same time achieve
the organization objectives and goals.

Furthermore, variety of questions and inquiries received by manufacturers will be greater and
stressful when manufacturers are dealing directly with consumers compared to traditional business
model such as business-to-business (B2B). Manufacturers may prepare a database or system that
provide a guideline to employees to deal with various situations or questions that might be asked by
consumers through customer service. Manufacturers can measure the performances of their staffs in
dealing and answering inquiries via evaluation of their attitudes, and the sentences they used in replying
are polite and comfortable to consumers.

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Last but not least, manufacturers faced some challenges in term of picking, packaging and shipping
products to consumers. When selling directly to consumers, there will be higher process of orders to be
shipped and the processes will be more complicated compared to B2B where the manufacturer only
send in bulk to middleman or retailers. Manufacturers may need to make decisions on deciding the
shape and size of boxes as well as the quality of packaging material used to shipped products to
consumers meet the certain criteria. Manufacturers need to ship their own products and compete with
others online retailers and online selling platform which sometimes the delivery fees can be cheaper
than them. Manufacturers may also face difficulties in calculating variable costs to determine which
options of logistic couriers are the most cost-effective. Sometimes, misplaced of shipments can caused
in the lost revenue of the organization. (Eubank, n.d.)

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Conclusion
In conclusion, no matter how the business platform the company decided to follow, accountant
and managers must be prepared and adapt with the new business platform. D2C is not a suitable
platform for manufacturer if the business itself convert to D2C straight away. It is because the most
affected field are retailers who depends towards the manufacturer to supply goods for them. Hence, if
D2C approach are adapt straight away, customer will find no reason to buy goods from the retailer
instead they will buy it with manufacturer. In order to prevent miscommunication between two groups,
it is important for both of them have a proper deal that can satisfied and give profit to both parties. The
most important part need to highlight is how the manufacturer need to plan and track their profit and
loss account. It will go through a complex ways to declare their profit and loss since their sales are
depend on customers. Customer are not stable and cannot be predict, hence the flow of money in and
out would be different than traditional ways but the benefit will get is their cash flow. The manufacturer
will get the money on time and their cash flow will look good in report and accountant should be prepare
on how to deal with multiple of account banks. That is why we mentioned that the manufacturer need
a strong security and have a strong system to support multiple of transaction in one time.

As an accountant, the most important things they need to do is ensure the suppliers get paid and
ensure all business transactions recorded; sales, cost, and any spend or receive money transactions. To
make sure accountants remain relevant and meet the expectations of business managers, accountants
should know and learn more about system used by the companies, suggest a good system that can help
the business handle lot of transactions and look through on how to make sure the company can show
they have a high profit in their report. The accountant also may need to cooperate with other department
or company’s function in order to improve their forecast and create a proper financial planning and
analysis. Besides, a lot of nowadays technology can support the business. They may should make use
of the cloud storage, subscribe a strong security system, having an accountant who is understand IT,
artificial intelligence (AI) and many more. All of this is important for future accountants to understand
and learn since we are right now moving forward towards IR 4.0.

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References
(n.d.). StackPath. Retrieved December 25, 2020, from https://www.coredna.com/blogs/direct-to-
consumer

(n.d.). Retrieved January 08, 2. (n.d.). Here's Why You Need a Hybrid B2B & B2C eCommerce
Platform. Retrieved from https://www.coredna.com/blogs/b2b-b2c-ecommerce-platform

3 Things Brands Misinterpret When It Comes To D2C. (2020, January 28). Retrieved from
https://retailtouchpoints.com/topics/digital-commerce/3-things-brands-misinterpret-when-
it-comes-to-d2c

4 steps to prepare for the future of accounting. (2018, November 19). Retrieved from
https://www.journalofaccountancy.com/newsletters/2018/nov/prepare-future-
accounting.html

6 Brand Benefits to Selling Direct-to-Consumer Now. (n.d.). Retrieved from Pxl:


https://www.pixelmedia.com/blog/6-brand-benefits-to-selling-direct-to-consumer-
now/#:~:text=Selling%20direct%2Dto%2Dconsumer%20ensures,shadow%20and%20dilute%
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