Ecommerce Company

$2.9 Million Total Supply Chain Cost Reductions For Leading ECommerce Company


 

Client

A large, leading Discount ECommerce Retailer with over $120 million in sales annually.

Initiative

Their venture capital partner was trying to find ways to increase profitability.

Situation

Despite volume increases and experiencing yearly growth of 20%, costs were rising. Supply chain costs were 9%+ of sales.


How We Helped

Asaph reviewed the company’s end to end supply chain and recommended some fundamental changes. We worked directly with the CFO and CEO to implement multi-phased supply chain improvements. Our activities included:

  • Analyzing supply chain network and organization
  • Analyzing workflow, organization of inventory, fulfillment process, and implementing new ship cycle
  • Reviewing Contact Center process / workflow
  • Designing and implementing customized Truckload, LTL, Parcel RFPs, and Contracts for improved delivery (speed, quality, and cost improvements)

Outcome

  • Reduced Total Supply Chain Costs $2.9M
  • Improved Inventory 99.9% through 24hr order confirm ship cycle
  • Implemented and managed new 3PL services with contracted rates, KPI, and drop ship fulfillment solutions
  •  Established S&H revenue method and changes improving top line sales .8%

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