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B2C e-commerce

Success Story:

A mid-sized specialty retailer markets and sells components and accessories exclusively online. Each order contains a high degree of variability with up to as many as six items per order selected via a website shopping cart solution. The brand and products are in high-demand and demonstrate a substantial level of repeat purchases.

Challenge:


The client was experiencing a large disconnect between their high-value brand and ability to meet the buyer’s service level expectations related to delivery and support options for returns.

  • Order turnaround times needed to meet a 24 hour shipment window or better. Flagging “rush” orders for priority processing was required.
  • High variation for each order made pack and pick times extremely challenging.
  • The business had considerable seasonality which required large capital investments.
  • Certain products experienced very fast sales runs where inventory and cash flow management were very challenging.

Solution:


Since the client heavily relies upon repeat customers and work-of-mouth marketing, PMA created a solution that took their fulfillment execution to a new level. This solution included the following:

  • Full turn-key order processing, pack/pick/ship and integrated returns processing for replacement parts or exchanges.
  • Implementation of a not-to-exceed 24 hours turnaround of products from receiving to be available for order fulfillment.
  • Inventory management system to show usage trends, current stock on hand and with special “stock-low” alert system.

Bottom Line:


PMA’s deep experience supporting e-commerce and multi-channel sellers was important in creating a special solution for this provider with a very fast deployment schedule.

  • Management has moved from viewing fulfillment as an issue within the business to believing it provides a competitive advantage and enhances their brand image.
  • Fulfillment costs have been estimated to be reduced by over 20% annually while executing against higher performance targets.
  • Cash flow has been positively impacted through reduced variable costs and better inventory management.

 

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