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.
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.
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.
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.