When a leading
cosmetics company asked us if we could
support the fulfillment of tens of
thousands of complex, multi-sku,
infomercial orders per month, and do it
faster, cheaper, and more accurately
than the big box, all-in-one provider
that they were currently using, we
answered "absolutely". We quickly
built a program based upon a
three-pronged approach; our goal being
to turn orders around the same day, not
to exceed the next business day.
Variances in media exposure,
seasonality, and other complex factors
would make achieving this goal via
traditional methods difficult.
First, we analyzed the
company's order variations and
categorized them into a handful of base
assortments. These base
assortments are built days in advance in
mass quantities, sometimes during
off-peak shifts, which in addition to
increasing throughput, offer
efficiencies that contribute to lower
costs. Each morning as orders are
transferred to us, they are quickly
sorted by base assortment and sent to
the production floor where additional
products are added to them. This
method dramatically increases the
pick/pack process as the majority of the
order is already packaged.
Packages are sealed, labeled, and
transferred to our Parcel Services
processing center, which is located
under the same roof.
Once at Parcel
Services, packages are manifested,
sorted based on destination, and readied
for bulk transportation to the carrier's
hubs, where they will enter the system
in a streamlined fashion.
The scenario above
occurs on a daily basis, begins at
approximately 8:00am and is completed by
2:00pm. Packages are deep into the
carrier's system by 6:00pm the same day,
and because they have been pre-processed
and sorted, are on the fast track for
routing and delivery by the carrier.
The average time from order receipt to
the consumer's doorstep is just 5 days.
Freight costs are approximately 40% less
than traditional ground methods.
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