Re-structuring Delivery Model and Inventory Management Through Order Fulfillment Optimization

Jun 4, 2017

Quantzig’s recent study on order fulfillment optimization for a leading electronics retailer guarantees 51% reduction in shipping cost for priority orders.

Optimizing Order Fulfillment

The surge of e-commerce and online retailers across the globe is creating a customer-driven business environment. Optimizing the order fulfillment process is gaining immense importance and suppliers are looking for new ways to increase sales, market shares, and reduce operational costs. The increasing focus on managing the performance of the sales force, improving the ability to process more loads, and optimal use of technologies will help retailers to elevate their order fulfillment processes. The introduction of 3PL techniques will also help retailers to analyze the best possible way to manage shipping and reduce delivery charges. The use of data analytics will help companies to prioritize business functions that require manual intervention. The data analytics team at Quantzig offers solutions that help businesses make better decisions and aids in improving various business processes including supply chain visibility, inventory management, and merchandising. The study also includes network optimization, enhance supply chain effectiveness, demand planning, category tracking, and consolidation, and tail spend analysis.

The growing popularity of subscription boxes is revolutionizing the supply chain matrix. This is a consumer engagement model that offers different subscription boxes at different price levels to increase consumer brand loyalty. To diversify the services offered, some retailers are also adopting subscription delivery models that include a subscription fee usually for six months or one year. Subscription boxes come with benefits such as quick delivery time and special offers, exclusively for subscribed customers.

Speak with our analytics experts and gain more comprehensive insights into optimizing order fulfillment in your industry, and transform your business today!

Warehouse Automation

To structure a robust delivery system and optimize the order fulfillment process, suppliers are implementing advanced technologies for warehouse automation. By using technologies such as RF scanners and heads up display (HUD) devices, retailers are enhancing productivity and reducing the chances of manual errors. Moreover, these devices provide data analysis of slow-moving products and solutions to improve the delivery and supply chain. With the aid of technology, suppliers aim to offer faster and quicker services with no room for error.

Emergence of Multi-Sales Channels

Service and product delivery today is not restricted to one channel. Storefronts, e-commerce portals, and catalogs are some of the few avenues utilized by retailers to reach the maximum number of consumers. The growing adoption of mobile apps is encouraging various suppliers to offer special discounts for consumers purchasing through these channels. The launch of promotional deals for different channels will help companies to acquire new customers and generate new revenue streams.

Outcomes and Solutions Offered

Quantzig’s order fulfillment optimization team develop an operative solution based on the classification of influencers from the analytics data collected from various segments for a leading electronics retailer. Some of the solutions offered are as follows:

  • Helped the client deliver better customer experience through faster fulfillment of online orders
  • Reduced the delivery time of priority orders by 80% (5 days to 1 day) through fulfillment from the stores
  • Provided an effective solution to reduce the delivery time and deliver better experience for loyal, high-valued, and new customers
  • Identified the factors influencing customer ratings in each segment and approximated a cost function to recognize the right store to fulfill the order
  • Offered recommendations on high-valued customers whose requested products are available at the nearest store and provide store-to-door delivery services

The complete case study on order fulfillment optimization engagement for a leading electronics retailer is now available.

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