Case Study: Optimizing the eCommerce Value Chain for a Leading CPG Brand

Paper cartons with a shopping cart or trolley logo on a laptop keyboard. Conveys the idea of customers ordering from retailer sites via the internet.

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.

Contact us now to discuss your needs and learn how we can help.

Tap into Thomas, Large & Singer’s century of experience as a valued partner in the CPG industry. Contact us today to learn more about how our talented team can help your business overcome food transport challenges and more as your full-service, lead logistics and warehousing company.

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