CASE STUDY

Quantzig’s Order Fulfillment Solutions Helped a Sporting Goods Manufacturing Company Lower Operations Costs by 35 Percent

Jun 26, 2020

Engagement Summary

Quantzig collaborated with a leading sporting goods manufacturing company based out of the United States to help them reduce their rising operation costs by creating an order fulfillment process strategy for them. The order fulfillment solutions offered not only helped the client devise a real-time, efficient inventory management plan but led to a reduction in operation and shipping costs as well.

About the Client

The client is one of the largest sporting goods manufacturers in the US and mainly designs and manufactures sporting goods, clothing, and accessories.

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The Business Challenge

The client handled their order fulfillment process, that start from receiving, processing, packing, picking, to shipping an order to customers, in-house, which was becoming challenging for them.

The key challenges that the client was facing due to their in-house order fulfillment process were:

Problem Statement 1

Faster Delivery – The client’s warehouse was not centrally located, which led to more shipping time for many items.

Problem Statement 2

Rising Cost of Shipping – The delay in shipping and a non-centralized warehouse location was also resulting in the rising cost of shipping.

Problem Statement 3

Poor Inventory Management – The client was lacking an inventory management plan and was running out of inventory occasionally. The client lacked the integration of order fulfillment solutions, sales channels, and other management tools.

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Solution Offered

Order fulfillment is the process of receiving, processing, packaging, and delivering orders to customers. The process starts with a customer placing an order and ends once they receive it. In case a customer wants to return a product, order fulfillment manages the return transaction as well.

Quantzig’s order fulfillment solutions enabled the sporting goods manufacturing company to provide efficient customer support and efficient return process which resulted in improved customer service and a revived reverse logistics operation. This led to a steady recovery of their customer service gap. With soaring prices of fuel, the client was also facing an impact on every area of operations, especially transportation. With shipping costs going up, the US sporting goods company was facing fluctuations in shipping costing, with predictive analysis of order fulfillment process the client was able to predict the future cost of fuel.

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Business Outcome

Order fulfillment solutions enable a business to have a direct impact on their customers’ buying habits. Customers always prefer to have a delivery option that fits perfectly with their needs and preferences. The client, with Quantzig’s order fulfillment solutions, was able to offer their customers a mix of fast and moderate shipping options that allow customers to choose goods and delivery options as per their budget and time. The key business outcomes after implementation of Quantzig’s order fulfillment solutions the outcomes in 2019’s H2 helped the client to:

  • Lower operational costs by 35 percent
  • Devise an inventory management plan
  • Reduce shipping costs by 14 percent

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