Client Case Study – Online Supplier of Luxury Goods and Electronics

Company: Online eCommerce Retail Store

Business Overview

This Sydney based, online supplier of luxury goods and electronics, dispatches tens of thousands of items per month via online sales to, primarily, residential locations Australia wide.
Fast and accurate fulfillment is a critical success parameter for this industry. Competitive pressures also mean that low cost is highly desirable, but not at the expense of performance.

Outline the challenge you were facing

The main challenge this retailer was faced with was competing against their competitors who were offering delivery at lower costs. It was resulting in a loss of sales, and many loyal customers were switching suppliers due to the cheaper delivery costs with the competitor.
Losses and breakages were significant both in cost and lost customer satisfaction. And the number of complaints that were received was quite high. The damage this was causing to the businesses reputation was significant.
Customer Service Officers were spending a considerable time fielding calls on delivery issues, managing customer complaints and problem solving, which increased call wait times and was impacting the overall experience with the brand in a detrimental manner.

What (if any) tactics did you try to resolve these challenges prior to working with Resources for Profit?

A number of different suppliers were tried, with a dual supply solution being the best available. Sensitive and valuable items were treated separately. The frequent change of suppliers was a costly exercise as it meant increasing administration time, internal training etc without generating real improvements.

Why did you select Resources for Profit to help you develop a solutions?

After a range of options were attempted with varying degrees of success, it became apparent that an independent analysis of the market and services available was required. Resources for Profit had prior contact in regard to sensitive cost categories. What we found most compelling about their offer was that we weren’t expected to pay them anything if they didn’t find and implement the solution. Because we spent so much time and energy trialing different suppliers, this was a huge benefit to us.

Please outline the solution offered by Resources for Profit?

Working with both Marketing and Distribution departments, a picture of the desired outcome was established. IT an operational considerations were also canvassed prior to choosing potential respondents.
Through matching the delivery profile of the client with the best available national carrier, Resources for Profit conducted a thorough tender process with particular attention to continuous improvements imminent in a volatile environment.

What were the results achieved?

  • Costs reduced by 20%
  • Delivery times improved
  • First time delivery in excess of 90%
  • Dramatically reduced Customer Service time and costs
  • Transit loss & breakages effectively eliminated interactions

For more information on how you too could potential save on your delivery costs, give us a call on 1300 727 347 or send an email.

Stephen Hambridge is a cost management expert who has helped countless retailers keep money in their pockets.