Profit increase by $130,540 within 5 months
Save over 20 percent annually on the shipping costs for containers and trucks
Labor сost reduction
Storage cost reduction
Shipping cost reduction
Our client could not correctly estimate the future demand for most of the products and overestimated the and overestimated the amount of products to store at the 3PL Warehouse. At the same time, the inventory planning for the remaining products was underestimated, which was that led to leading to serious Out of Stock problems in the during the busiest months of November and December, as there were no products available on 3PL, and they could not be delivered to Amazon on time.
damage from lost sales
Two popular SKUs experienced “Out of Stock” events in the last 2 months of 2021, which that led to $135k in lost sales, additional air shipment and marketing costs. To bring back their initial ranking spot the client had to launch an additional marketing campaign (about $9k in additional costs).
In 2021 our client had relatively high shipping costs for domestic and overseas shipments (4.48% of total revenue), need to rewrite to "the storage costs for both Amazon FC and 3PL were much higher (1.89% of total revenue) compared to our benchmark of 0.9%.
increased the pallet utilization by
Decreased LTL cost to
Decreased SPD cost to
Using the Advanced AI Demand Forecasting, HyperC has been able to combine the shipments to achieve maximum savings in transportation and storage costs, increase average pallet utilization by 21%, and lower the LTL costs by half (to $0.05 per lb) as well as SPD costs by 28% (to $0.26 per lb) using the access to privilege shipping options.
reduction of SPD shipments
The amount of SPD shipments was reduced from 41.1% in 2021 to 5% in 2022. It allowed shipping with FTL or LTL methods as well as made the shipping process more cost-effective.
Our predictive modeling system took into consideration seasonal trends and the individual
trends of each product.
By doing so, we decreased the inventory levels in the 3PL and amazon warehouses with low sales velocity. However, the popular products were still purchased in large quantities from the suppliers and they were always delivered when needed including the peak season.
Our client was able to avoid the lost in sales caused by the ranking loss and lowered the shipping costs by 24% which resulted in an increase of net margin by 4% and profitability by 36%.
Direct shipments from the suppliers to Amazon by sea was also an important part of the success, as well as introducing a well planned structure of the shipment schedules that helped get rid of more expensive airplane shipping.
With the help of our quantitative and qualitative forecasting models, we were able to predict what items are most likely to sell out quickly. We then shipped these items directly to Amazon warehouses to minimize shipping expenses.
We were able to help the client find a faster and more effective way of shipping goods by sea from Turkey, with lead time reduced from 70 to 45 days.