| A small e-commerce start-up was challenged to set up a logistics network that would both swiftly respond to consumer purchase patterns and beat their competitor’s lead time. To accomplish this, they needed help selecting a primary carrier and designing an efficient warehouse flow.
We used our parcel strategy process to first benchmark where they compare to their competition in terms of carrier selection, transit time, order processing time and cost to consumers. This analysis showed that they had best-in-class transit times and pick-up times, but they charged their customers more for it. We also showed that their competition had more shipping options such as air service, if needed.
Through a competitive bid process, our client selected another carrier to supplement their existing carrier. The two carriers split the deliveries based on their transit time and cost. Our client saved 25% in rates with no degradation of service.
In addition to the carrier selection process, we were also able to improve their warehouse flow to reduce product touch points. Even though this did not produce direct savings, it did improve employee productivity.
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