May 23, 2017 in Fulfillment

It’s finally happening.  Consumers love your product and you can’t keep it on the shelf.  In fact, you are having trouble even fulfilling orders on time. After months of product development and working with remote factories to perfect the product, the inventory has finally started to arrive.  All that’s required is to receive the product, perform the final assembly, pick, pack and ship.

But … you are hitting a few hurdles. The warehouse space you rented six months ago is already too small.  You can’t hire warehouse workers fast enough and those you’re attracting are expensive.  In addition, you need more HR people and supervisors to manage the growth. Expanding to a second shift requires more management, your employees are complaining the lunch room is too small!  And, what you really want is to focus your team on continued product enhancements and to sell more stuff before competition inevitably heats up.

Do you rent a larger warehouse and sign a multi-year lease for one that is too big today, but may be the right size in six months and too small in a year?  Do you hire a more experienced warehouse manager and supporting personnel to manage your increased volume? Do you invest in a warehouse management system (WMS) to allow you to efficiently process orders? Do you hire expensive or unreliable (or both!) temporary labor? Many new businesses are great at product innovation and marketing, but do not have the expertise, desire or budget to make order fulfillment a core competency—all skills necessary to expand your business and to maintain happy customers.

A Case Study in Efficiency and Cost Savings

Specifics: A fast-growing consumer products company selling an innovative cell phone accessory was looking for assistance with omni-channel fulfillment. Named by USA Today as “the coolest tech you have to see” at the Consumer Electronics Show, and being called “the best compact smartphone support they’ve ever seen” by the Wall Street Journal, the Company was literally exploding at the seams. Ecommerce sales were increasing exponentially and big box retailers couldn’t wait to merchandise the product on store shelves. The service requested by the Company wasn’t simply a pick and pack operation. Each product—which had almost 10,000 customizable configurations—required printing and assembly before packaging and fulfillment. The company was looking for a unique fulfillment partner. They didn’t only need a partner that could manage their rapidly expanding Ecommerce order fulfillment needs (that was ramping to 10,000+ orders a day); they needed someone who could also print and assemble the products. In addition, they sought a partner that had experience managing the myriad of complex routing guide requirements from their ever-increasing list of retailers.

Solution:  XB Fulfillment implemented a highly efficient and cost-effective solution that enabled the company to focus on growing its sales with the confidence that it could deliver on its dramatically growing needs. An XB Fulfillment team that included engineers, operations and IT professionals studied the company’s existing operation, mapped processes, prepared time studies, and determined staffing and equipment requirements.  Drawing on decades of experience in order fulfillment, manufacturing, and assembly, they developed a detailed cutover schedule to ensure the operations could seamlessly transition to XB’s facilities without customer disruption.

Outcome: Within just 90 days of the first meeting, the first orders were shipping. Forty-five days later, the XB Fulfillment team had established a 24×7 operation capable of shipping tens of thousands of Ecommerce orders a day.   Hundreds of thousands of boxes of product were being shipped to 30+ big box retailers and hundreds of smaller retail customers.  Leveraging XB Logistics’ advanced WMS platform, each channel of business was fully integrated. Multiple shopping cart integrations and APIs enabled orders to seamlessly pass into the WMS for processing with shipping confirmations and order tracking information all passing back automatically.

By the second month of transition, XB Fulfillment was fulfilling 60,000 ecommerce orders a month. All of the orders were shipping within the required SLA of 24 hours—even including custom printing and assembly—with the operation quickly ramping towards 250,000+ orders per month!

Not only are the orders fulfilled and delivered to customers with over a 99.8% on-time delivery, but XB Logistics was also able to provide well over 30% savings from the cost to perform the same service internally.

XB Fulfillment can not only help you more efficiently manage your complex omni-channel order fulfillment and value-added services needs, we guarantee we’ll do it at a cost savings of at least 30%!

To learn more about the secret to XB Fulfillment’s ability to do more for less, Click HERE.