Network Marketing
| The Challenge In 2008 a new company was launched that offered a natural energy product. The sales channel was to be a Network Marketing program or Multi-Level Marketing. The product would have considerable weight and would require product to be in home with great efficiencies as to maintain the excitement of the new associates. With this business model it was assumed that the growth of the company would be regional and would require multiple distribution points to control shipping costs and delivery times. Furthermore the monitoring of auto-ship volume and returns would also present challenges. In 2009 the dynamics changed again which required a complete 3PL solution. The movement of raw material to the manufacturing plant, the movement of the finished product to the fulfillment centers and the sales channel of bulk shipments to food service agencies. This required the experience of retail and large distribution centers routing guides with special requests specific to each agency. The Solution By using our Fulfillment Management Software we were able to set rules in place that would route the orders between our fulfillment centers. With the project starting with great volume on the west coast we were able to utilize our Sparks, Nevada location for orders from the Rockies West while using the St. Louis, Missouri facility for orders to the East. Our system would set a zip code split per order and route return packages to the proper facility. The inventory being a consumable will also be managed with our system requiring product pulls by expiration dates as to follow standard First In First Out methodology. Again this is where the FMS would guide our facilities. With the additional needs presented in 2009 we would have to filter in our LTL and truckload departments to coordinate at best cost and service these new needs by utilizing our vast carrier relationships. The Results To date there have been over 1 million cases shipped via small package to both domestic and international locations. By routing the packages through multiple locations and shipping same day we were able to have those packages delivered to more then 68% of the US in less than 2 days and the remaining within 3 days. By reducing the delivery zone via UPS we were able to show a package shipping cost savings of up to $9.16 per order. The same drastic savings were also seen in the bulk shipments of pallets by routing through the proper fulfillment center. Return processing was coordinated and regulating through a RMA system that was put in place to assure credits were given to proper customers and that the returns were controlled for projections and planning. By applying the technology and the forward thinking of the Untied Fulfillment Solutions team we were able to: - Ensure same day shipping on all orders. - Maintain an unheard of accuracy rate with only 29 case errors out of over 1,000,000 shipped - Our locations offer delivery to 99.74% of the population in under 3 days. - Lower LTL costs by using UnitedFSI relationships. - Route Canadian shipments with greater efficiencies through multiple ports. - A dedicated Account Manager to monitor changing trends and react accordingly. |
"With a new product line we needed to make sure that we had the regional presence to maintain our ground level sales force. With our business everything is about the excitement that is needed to rally our associates. Letting the team over at UnitedFSI manage and guide us through our logistical needs we found that partner that will help us get to our goals. Not only did they earn our business but they continuously monitor our needs and present new ideas and solutions." |
