Case Study 2: Streamlining E-commerce Operations for a Home & Kitchen Retailer in the US
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Introduction
Beam Consultants partnered with a prominent e-commerce retailer in the Home & Kitchen segment, operating primarily in the US with limited marketplace business in Canada and the EU. The company faced significant challenges in managing their supply chain, procurement, and order profitability. Beam Consultants took on the task of building a comprehensive system to address these pain points and deliver transformative results.
Background
The e-commerce retailer specialized in offering Vacuum Cleaners and Air Purifiers, operating both as a reseller and under their private label brand. Approximately 70% of their goods were sourced from China, leading to extended lead times and logistical complexities.
Challenges
The client grappled with several critical issues that hindered operational efficiency and profitability:
1. Extended Lead Times: Procuring products from China resulted in lead times exceeding five months, causing delays and customer dissatisfaction.
2. Lack of Visibility: The company lacked clear visibility of shipment arrivals, making it difficult to manage inventory and plan for timely order fulfillment.
3. Order Profitability: The absence of item-level profitability calculations obscured the true cost of each order, hindering informed decision-making.
The Assignment for Beam Consultants
Beam Consultants was tasked with building a robust system to tackle the client's challenges, focusing on enhancing supply chain visibility, improving order profitability insights, and reducing lead times. The main challenge lay in integrating diverse data sources and creating a user-friendly interface for vendors while working with multiple stakeholders.
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Approach
Beam Consultants implemented a strategic and comprehensive approach to address the client's pain points:
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User-Friendly Interface: For Chinese-speaking vendors, Beam Consultants designed a simple and intuitive UI to gather data at the source. The interface facilitated seamless communication, allowing vendors to input critical information efficiently.
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Freight Forwarding Integration:** Beam Consultants integrated the system with an existing freight forwarding aggregator through APIs. This enabled real-time tracking of shipments, providing the client with clear visibility of shipment arrivals.
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Marketplace Integrations: Building direct integrations with major marketplaces such as Amazon, Walmart, eBay, and Rakuten, Beam Consultants captured post-order data on fees and charges. This comprehensive data allowed for accurate item-level profitability calculations.
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Dashboard and Mail Digests: Beam Consultants developed a user-friendly dashboard for top management to access critical supply chain insights. Additionally, regular mail digests were sent to key stakeholders, ensuring that they remained informed and empowered to make data-driven decisions.
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Results and Benefits
The implementation of the comprehensive system brought remarkable improvements to the client's e-commerce operations:
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Reduced Lead Times: Average ETA for head items was significantly reduced to under 90 days, enabling faster order fulfillment and improving customer satisfaction.
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Enhanced Profitability Insights: Item-level profitability calculations provided clarity on order profitability, leading to better pricing strategies and informed decision-making.
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Precise ETA Predictions: The system enabled accurate ETA predictions with a +/- 3-day interval and achieved a 90+% accuracy rate, ensuring efficient inventory management.
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Streamlined Supply Chain: By integrating data sources and providing clear visibility, the supply chain was streamlined, improving overall operational efficiency.
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Conclusion
Beam Consultants' strategic system integration and customized UI design transformed the e-commerce retailer's supply chain management, order profitability insights, and lead time predictability. The successful implementation of this solution empowered the company to make data-driven decisions, optimize order fulfillment, and achieve remarkable efficiency gains.
With Beam Consultants' tailored approach, the Home & Kitchen retailer emerged as a stronger player in the competitive e-commerce landscape, positioned to thrive and expand their market presence in the US, Canada, and the EU.
Experience the power of streamlined operations. Partner with Beam Consultants today!