Challenge
CPC was approached by an eCommerce business to help them gain full control over their supply chain, shipping, and logistics while maintaining their competitive advantage in the industry.
Previously, the eCommerce business used outsourced resources like a third-party logistics center (3PL) for their pick, pack, and ship logistics. When the company began to grow, the third-party logistics center was quickly becoming expensive and ineffective.
Our team was able to help develop, design, and build an internal fulfillment and logistics center, maximizing the space for optimal shipping, inventory control, vendor management, import and export cargo, and other facets for them to utilize as the business scales up.
Approach
Our team built out their entire logistics and fulfillment center, so we started with research to fully understand the business needs and current technology stack. We determined that a multi-system technology stack with cross-functional integration needed to play a major role. Also, both WMS and ERP systems were evaluated as to their efficiency from both a cost perspective and the business requirements. Next, we drew detailed process maps of their warehouse workflows and technology stack and designed their warehouse location (also referred to as licensing) numbering system.
Additional key areas we focused on were reducing costs, diversifying their vendor roster, and reducing the risk of a single-source supplier. All of these were eminent to their growth potential. We first conducted a supply chain analysis that identified gaps in information and fulfillment responsibility, overspend, questionable line items, and vendor ambiguity.
We designed the warehouse to optimize and maximize the space with specific supplies and machinery to its full capacity. Pick flows were designed to maximize pick rates and pick volume. We updated their WMS and ERP systems to manage their logistics, inventory and reporting providing accurate, real-time data and metrics.
Business process improvement and optimization play a major role in any adjustment to the supply chain, workflow, logistics, and fulfillment center. We ensured alignment of the warehouse processes, systems, team training, and digital support materials. We took careful consideration into their customer experience to improve it and cut costs.
Results
We reduced this business’s monthly costs by 84%+ and reduced errors by ~15%. In conjunction with these significant savings, we also increased their ability to manage and control the packing and logistics process, reducing the number of errors and increasing output. This business can now manage its entire supply chain, communicate with its vendors, and manage the import of goods by cost and location.
This business has also managed to scale an additional 15% and expand its market share by providing more products and services. This business continues to be a success story as they venture into new markets providing their customers with an exceptional experience while cutting costs and better managing the company.
