Order Fulfillment Solutions Enabled a US based Retailer to Lower Shipping Cost by 12%

Jul 13, 2021

Engagement Summary

From managing and improving the sales team’s performance and enhancing the ability to process more loads to utilize optimal technologies, organizations, especially in the retail sector, have several predicaments to overcome while optimizing their order fulfillment processes. In 2020 the global retail industry spun with the global lockdown due to the outspread of coronavirus. However, for many of the retailers, their sales outperformed their competitors. Thus, making the order fulfillment process one of the most crucial parts of the retail business. By providing efficient, comprehensive insights, Quantzig’s solutions help retail businesses make better and faster decisions and improve various business processes, including inventory management, supply chain visibility, and retail merchandising. 

A fashion retail brand wanted to reduce its high operation cost resulting from an inefficient order fulfillment process.

With a few retail e-commerce giants raising the bar when it comes to same or next-day delivery, retailers all across the globe now require an efficient and successful order fulfillment process. Request a free proposal to explore Quantzig’s solutions portfolio.

The client

The client is a fashion and lifestyle retail-based out of the USA which is one of the largest daily wear apparel manufacturers in the US fashion and lifestyle retail market.

Business Challenge

Retail order fulfillment and demand planning is a complex process. The client was managing their order fulfillment process in-house. The critical challenges of the client included-

Problem statement 1

Faster delivery – With the outspread of the COVID-19 virus, the world witnessed a lockdown and a sudden surge in online orders. In addition, the location of the warehouse was becoming trouble, and it was not located centrally, leading to costlier and more time-consuming transportation.

Problem statement 2

Increasing shipping cost – The client lacked a proper warehouse management system. In addition, the existing warehouse location led to considerable delays in order fulfillment and high shipping cost due to fuel price surges. The client wanted to reduce delays in delivery as well as shipping costs.

Problem statement 3

Mediocre inventory management – Accurate inventory management is the secret to a successful retail business. Tracking stocks regularly helps in avoiding out-of-stock scenarios and reduces inventory holding costs. The client wanted to create an automated inventory planning process to reduce their inventory management expenses and integrate their inventory, and sales channels.

Adopting holistic analytics-based order fulfillment solutions has helped leading organizations to navigate through several crises. Wonder how? Speak to our expert for comprehensive solution insights.

Solution Offered

Quantzig’s SMEs helped the client identify bottlenecks in their existing order fulfillment process and find means to eliminate them. For example, with the help of an analytics-driven solutions, the client was able to identify a centralized location for their latest warehouse to reduce delays in fulfilling orders, reduce their shipping costs by efficiently planning deliveries, and create a reliable, data-driven demand planning process. Quantzig’s experts also helped the client create an automated inventory management dashboard to reduce inventory holding costs and eliminate human error. As a result of this collaboration, the client witnessed a steady recovery of their inadequate order fulfillment solutions and reduced inventory management expenses.

Business Outcome

An efficient order fulfillment process enables retail businesses to positively impact the customer’s buying habits, thereby enhancing their satisfaction. Businesses that have multi-sales channels always require additional technology to monitor and manage delivery systems. At Quantzig, we always aim at less complexity as sales can be tough to manage with complex order fulfillment and improper inventory management. The critical business outcomes were-

  1. Lowered shipping costs by 12%
  2. Devised an automation-based inventory management plan
  3. Improved customer satisfaction and reduced customer attrition by 8%

Retailers who leveraged Quantzig’s order fulfillment solutions witnessed higher customer satisfaction levels. Schedule a free pilot to learn how our solutions can be customized for your organization and help you eliminate costly inefficiencies, enhance customer satisfaction, and increase revenues.

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