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On Target and On-Time: Optimizing Omni-channel Fulfillment

While expanding retail channels and growing an ecommerce business, retailer makes all the right moves for efficiency and customer satisfaction.

Key Challenge

Low fill rates and order errors were undermining sales. There was little or no visibility into order activity and inventory levels, creating slips in inventory management. While service levels from the current fulfillment provider were not meeting the company’s needs, pricing was set for a major increase. Company leadership wanted to achieve better value from its investment. A current FIDELITONE client suggested leadership contact FIDELITONE for better results.

Solution

The client and FIDELITONE teams established clear goals and agreed to relocate fulfillment services to a FIDELITONE-operated order fulfillment center in Elizabethton, Tennessee. This would expand the company’s 1-2 day service area, providing a cost effective way to support the expansion of their consumer and retail customer base outside of their current geography. Goals in planning the changeover were to minimize down time, enhance visibility, and rectify the ailing order fill rates and accuracy rates.

Onboarding, On-Target

A rigorous onboarding plan addressed chief concerns with an analysis of SKU velocity. The FIDELITONE team identified top-movers and front-loaded inventory accordingly. Implementation of a cloud-based warehouse management system (WMS) primed the operation for quick and easy integration. Within the warehouse walls, FIDELITONE UPC coded every product at either the SKU or carton level. They configured bin locations for all SKUs and made all of these visible within the WMS. Ramping up for orders also meant initiating the proper checks and controls for accuracy in both order fulfillment and inventory data maintenance. FIDELITONE implemented an electronic order verification system utilizing UPC codes to accomplish both.

Outcomes

Products began arriving at the Elizabethton warehouse on a Thursday and were shipping out by the following Tuesday. The previous fulfillment service continued during the Thursday-Friday interim, so there was only one day of down time in the transition. Maintaining the direct-to-consumer fulfillment window of about 2 days, the new location meant a slightly shorter average distance between the distribution center and customers, saving about 1% in shipping costs.

Order accuracy approaching 100% and fill rates of 99.6% were huge wins for this company. Further boosting service levels, orders received by 3 PM now ship the same day. Topping it off, the client enjoyed a 31.5% reduction in warehouse and labor fees with FIDELITONE, re-defining the meaning of value in this business.

Full visibility into inventory and orders through the cloud-based WMS is helping the client verify order status on demand and enhance inventory decision-making for the company’s service to more than 63 retailer partners and many thousands of consumers. A bonus for efficiency, FIDELITONE now manages routing guides for deliveries to retailers, too. In all, the company’s orders have more than doubled since the switch to FIDELITONE, and orders now span 43 countries across 6 continents.

Making all the right moves has translated into unmatched precision in inventory management and order fulfillment for this client’s business. Satisfied customers everywhere now turn to them for a timely laugh and just the right gift—at just the right time.

Fill Rate

Annual Fulfillment Cost Savings

Order Accuracy

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