Competitive Shipping Upgrades Order Fulfillment Operations
Optimized order fulfillment network earns customer loyalty and saves retailer money.
Key Challenge
Attempts to compete in the fast-ship world led to expensive 2nd-day air charges and were not sustainable. With an annual volume of 90,000+ orders and 790,000+ units shipping to customers nationwide, freight expenses skyrocketed.
The company was managing order fulfillment in-house through a single warehouse location.
Solution
The client engaged supply chain management experts at FIDELITONE to seek a solution. The team conducted a supply chain network and freight analysis, evaluating optimal fulfillment locations and predicting potential freight savings. Based on their modeling, they designed an optimal fulfillment network to provide 1-2 day fulfillment to customers across the U.S. while maximizing savings. The client chose to outsource full responsibility for order fulfillment, warehousing, and transportation management to FIDELITONE, who could apply the expertise, scalable resources, and technologies to solve the problem.
2 is Better than 1
Fidelitone identified its Sparks, NV and Elizabethton, TN fulfillment centers as optimal locations to achieve 1-2 day shipping, covering the full geography of the company’s customer base. The upshot was reduced transit time to customers, without reliance on expensive 2nd-day air services.
Seamless Onboarding
Outsourcing order fulfillment to FIDELITONE allowed the client to eliminate the warehouse space, labor, equipment, and warehouse systems required to manage order fulfillment. FIDELITONE optimized warehouse material handling equipment to support the client’s business and defined SLAs. It assigned a program management team to support the client in addressing requirements, managing data, and ensuring a smooth workflow. A comprehensive onboarding plan was devised to onboard the operation in both locations seamlessly.
Outcomes
The new order fulfillment solution reduced transit time to customers, now benchmarking at a highly competitive 1-2 days. Not only did the model please waiting customers; it also generated a 33% savings in freight expenses.
Eliminating the resource-intensive overhead of managing order fulfillment was an additional benefit for the client, who could now focus on its core competencies. The client can use dollars saved elsewhere as it continues its strategic growth.
With FIDELITONE as its strategic partner, the company has the peace of mind that its operation can scale as needed as customer loyalty and targeted growth drive the business. The client has since expanded their ecommerce business to ship internationally.
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