Situation

 

A premium confectionary company in the United States was experiencing high growth rates in the direct-to-consumer (D2C) channel but was also facing exponentially high fulfillment costs.

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Challenge

 

The client saw rapid growth in its direct-to-consumer channel and wanted to further accelerate growth in e-commerce. However, their fulfillment processes were very manual, expensive, and difficult to scale. 

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To successfully expand the D2C business as part of the overall OMNI-channel strategy, the client tasked LogiChain Solutions with creating a strategy and recommendations to reduce the fulfillment costs per order while increasing fulfillment efficiencies and capacities. 

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Action Steps

 

To assist in reducing fulfillment costs, Rene conducted a comprehensive fulfillment diagnostics assessment by interviewing key stakeholders and analyzing costs, processes, technology, staffing, equipment, and infrastructure. He then compared the company’s fulfillment metrics and KPIs to industry benchmarks. 

 

Based on his findings, Rene developed recommendations, requirements, and a roadmap for implementation to drive cost savings as well as efficiency and capacity increases.  

 

Results

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The D2C fulfillment diagnostics assessment revealed efficiency gain opportunities of more than 50% and cost saving potential of more than $500,000 annually. 

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The  improvement opportunity matrix Rene created served as a roadmap with 50+ recommendations, ranked and rated by priority, importance, business value impact, cost for implementation, effort for implementation, and suggested project start period.