Case Study: Expanding Footprint to Lower Costs and Maintain Performance

Efficient logistics and cost-effective shipping are crucial for online retailers to remain competitive. We recognize the challenges of meeting customer expectations while dealing with rising shipping costs. Here’s the story of a client who approached us for a solution and how our nationwide network delivered results.

The Challenge

An existing client, a leading haircare brand, faced rising shipping costs due to general rate increases earlier this year, with a projected annual increase of 5.4%, or roughly $251,244. They needed to cut costs without compromising their 2-3 day delivery promise.

Our Solution

We proposed a two-part strategy:

1. Expanding Facility Usage: Instead of relying on two coastal warehouses, we suggested leveraging ShipNetwork's 10 strategically located fulfillment centers nationwide. This reduced shipping distances and times.
2. Switching to Ground Services: By increasing the number of fulfillment centers, the client could switch to more cost-effective ground shipping, with only a slight increase in average transit time—from 2.56 days to 2.68 days.

Real Results

By expanding into a more comprehensive distributed fulfillment model, our client could achieve remarkable results:

• Significant Savings: Monthly savings of $60,382.49, totaling nearly $725,000 annually, reducing shipping expenses by approximately 15%.
• Maintained Delivery Performance: Consistent 2-3 day deliveries, ensuring high customer satisfaction and no impact to the customer experience.

Benefits at a Glance

• Annual Savings: Up to $725,000 saved annually by optimizing routes, switching to ground services, and positioning inventory closer to customers.
• Consistent Delivery: Maintained 2-3 day delivery times, keeping customers happy and loyal.
• Customer Satisfaction: Fast delivery and reduced shipping costs provided a competitive edge.
• Scalability: Easily handled increasing order volumes without compromising delivery speed or efficiency.

Why Partner with ShipNetwork?

ShipNetwork isn’t just about shipping packages; it’s about delivering promises and driving growth. Here’s why our distributed fulfillment strategy stands out:

• Extensive Warehouse Network: Minimize transit times and optimize delivery routes.
• Scalable Solutions: Seamlessly accommodate increasing order volumes.
• Xparcel Shipping: Select the most efficient and cost-effective shipping service with one optimized ship method.
• Dedicated Support Team: Receive guidance like this one and continued solutions for smooth logistics operations.

At ShipNetwork, we empower eCommerce businesses with seamless logistics solutions, allowing you to focus on what you do best. Our distributed fulfillment strategy is designed to save costs and enhance delivery performance, ensuring your customers receive their orders promptly and reliably.

Interested in Cutting Costs and Boosting Efficiency?

Contact us today at [email protected] or 866-983-7447 to learn how our solutions can transform your shipping strategy and deliver outstanding results.

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