Second life for bespoke furniture from returns and cancellations

Challenge

Production and sale of bespoke furniture involves a variety of challenges. One of them is the problem of returns or order cancellations, which can occur after production has already started. In order to improve the resale and redistribution of such products, Tylko.com has bet on the digitalisation of processes.

Solution

The implementation of the auction system was preceded by consultations to optimise the process and adapt it to the client’s specific requirements. Key expectations included:

• An attractive platform design, with branding elements to emphasise the professionalism of the solution.
• The ability for external parties (e.g. friends and family of employees) to view auctions via a link, without having to log into the system.
• Integration of inventory with Active Directory.
• Fair Play in employee auctions – each employee has equal access to the auctions, which last for 5 days, allowing time to make a decision.
• The possibility to expand the functionality of the system in the future, such as new distribution channels or additional product groups.

An ESG expert also took part in the discussions, ensuring that the idea of a circular economy is maximized.

Business effect

Currently, around 200 employees actively participate in auctions, which translates into a 25% increase in interest. Sales have increased by 50% year-on-year, reaching 2,000 auctioned items in the last three quarters. In addition to volume growth, profitability and transaction value have also increased. Due to the promising results, Only plans to further expand the platform’s functionality and introduce a new sales channel aimed at a closed group of companies in the B2B model. In addition, the platform will also include auctions of depreciated company equipment in the future.