Save over 20 percent annually on the shipping costs for containers and trucks
Fulfillment team productivity increased by
Storage fees reduced by
Profit increased by
As a result our client had products in stock on Amazon for some of the positions for 5 months ahead, which resulted in extremely high Amazon storage costs.
The client was also experiencing difficulties ordering their required supplies because due to the constantly changing lead times for each product. These variations made it difficult to schedule the production of the required goods by a specific departure day, and especially managing the process efficiently.
The client was also experiencing difficulties ordering their required supplies because of the varying lead times quoted for each product. These varied lead times made it difficult to schedule the production of the required goods by a specific departure day, and especially managing the process efficiently.
In 2021 our client had very high shipping cost (5% of total revenue)
High storage cost
(4% of total revenue)
Had consistent Out Of Stock events, which led to inevitable damage from ranking loss and lost sales (5% of total revenue)
HyperC solutions provided our client the ability to ship products more efficiently, increased their Amazon inventory performance by 25%, predicted future demand with a degree of certainty, as well as fixed supplier relationships management.
With these updates our client was able to achieve regular FTL shipments to Amazon once a month with an accurate coverage of the future sales 4 weeks ahead, while dynamically updating safety stock which helped to avoid OOS events at low cost. The shipments were grouped into the new batches for maximum savings in transportation, storage, and handling fees.
reduction of storage costs
Shipments became more regular with a lower number of SKUs that had low sales velocity. This reduced their storage costs by half, avoided keeping old inventory in the warehouse and filled a full truck with more popular and frequently bought items.
Full truckload resulted in significant savings of the transportations costs not available before.
The optimal truckload allocation capacity with 95% accuracy by SKU was achieved by using Hypercet forecasting model.
The biggest achievement we made was full visibility of the future supply chain needs, including future inventory levels as Amazon and 3PL warehouses. By doingso, we've been able to simplify the procurement process and planned purchase orders so that they're ready on time from multiple suppliers and shipped togetherin one single container.
Eventually the client has managed to lower shipping costs by 20%, avoided lost sales, and increased the net margins by 5%.
decreased shipping costs by 20%
increased net margins by 5%
Due to HyperC optimizations, the cost of trucking shipments were lowered from $0.11 to $0.05 per lb. Moreover,
the average pallet utilization was raised by 21%.
To save on transportation and storage fees for Amazon, a new 3PL facility was proposed at a close proximity to Amazon FC.
By eliminating Out of Stock, we were able to raise the client’s FBA
In Stock Rate to 100%.
Optimizing the products in the FBA warehouse led to a lower percentage of excess inventory. With this improvement, the IPI score went up (from 440 to 600), which then led to an increased restock limit for additional 56161 units and enabled our client to ship containers directly to Amazon from China.
As a result, we were able to achieve much shorter lead time compared to using 3PL in between. As a result, our client now has 100% reliable supply chain operations with no disruptions.