This case study revolves around a prominent CPG brand that benefited from Thomas, Large & Singer’s expertise in ecommerce value chain analysis and optimization.
The Client, with a significant online presence, was previously engaged with a third-party company to fulfil their Direct-to-Consumer (D2C) orders from their ecommerce website.
Executive Summary
The Client faced challenges with their third-party ecommerce fulfillment partner, leading to increased costs, wasted inventory, and delayed order processing.
By transitioning to Thomas, Large & Singer’s tailored ecommerce solutions, they experienced a significant reduction in logistics costs, eliminated inventory waste, achieved faster fulfillment times, and offered products to their consumers at a more competitive price.
The Problem
The Client’s initial engagement with a third-party ecommerce fulfillment company resulted in several pain points:
- Elevated Costs: The third-party company’s services came at a higher price, impacting the Client’s profitability.
- Inventory Wastage: The Client faced challenges in managing inventory with the third party, leading to unnecessary wastage.
- Delayed Order Processing: The third-party company took a minimum of 48 hours to process and ship orders, affecting the Client’s promise of timely delivery to their consumers.
Despite their efforts to streamline the process, the Client couldn’t find a solution that addressed all these challenges simultaneously.
The Solution
Recognizing the Client’s challenges, TLS immediately began re-evaluating their ecommerce value chain in an effort to find efficiencies. From this value chain analysis, Thomas, Large & Singer proposed a tailored ecommerce solution by spearheading the creation of its own D2C division.
This strategic move eliminated the need to ship products to a third party, resulting in:
- Cost Efficiency: Direct handling by TLS reduced multiple layers of costs associated with third-party handling.
- Inventory Management: With the elimination of third-party involvement, the Client no longer faced issues related to inventory wastage.
- Swift Order Processing: TLS’s system is designed for efficiency, often shipping orders on the same day they are received.
By integrating the Client’s needs with TLS’s value chain distribution expertise, a seamless and efficient ecommerce value chain was established.
The Results
The transition to Thomas, Large & Singer’s ecommerce solution brought about significant ecommerce value chain efficiencies and transformative results for the Client:
- Reduced Logistics Costs: The Client saw a significant drop in logistics costs.
- Zero Inventory Waste: The direct handling and efficient inventory management system ensured there was no product wastage.
- Enhanced Fulfillment Times: Orders were processed swiftly and often shipped on the same day, enhancing customer satisfaction.
- Competitive Pricing: With reduced overheads, the Client could offer products at a more competitive price, benefiting the end consumers.
The Client’s experience stands as a testament to the unparalleled advantages of partnering with an experienced and respected CPG distributor like Thomas, Large & Singer, who understands the nuances of the ecommerce value chain for CPG brands.
By leveraging Thomas, Large & Singer’s century-long expertise in the CPG industry and its innovative ecommerce solutions, brands can navigate the complexities of the modern ecommerce landscape and achieve sustainable growth in the North American market.
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