How Distributed Fulfillment Saved eCommerce Client Over $700,000 [Infographic]
Are rising shipping costs eating into your profits? You're not alone. Our client faced a similar challenge, with annual carrier rate increases projected to result in a total 5.4% increase in shipping costs. But they found a solution—and so can you.
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Discover How Distributed Fulfillment Saved Our Client Over $700,000 Annually
Are rising shipping costs eating into your profits? You're not alone. Our client faced a similar challenge, with annual carrier rate increases projected to result in a total 5.4% increase in shipping costs. But they found a solution—and so can you.
The Challenge
Our client needed a solution to reduce their annual 3PL spend while maintaining their delivery performance. Here's what we did:
- Option 1: Switch to Ground Services
- Potential Savings: $22,226/month, adding up to $266,700/year.
- Challenge: Could hinder their ability to maintain a 2-3 day delivery promise.
- Option 2: Expand Distributed Fulfillment Network
- Achieved consistent 2-3 day deliveries with ground and expedited services.
- Result: Monthly savings of $60,382, culminating in an annual financial gain of nearly $725,000.
By expanding their footprint to our nationwide network of facilities, we reduced their average shipping zone to 2.73, maintaining their delivery promise and achieving substantial cost savings.
Your Path to Savings
Our strategic distribution network allowed our client to save significantly on shipping costs without compromising delivery times. This move increased average transit time only slightly, from 2.56 to 2.68 days—a small change justified by the substantial savings.
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Learn how you can achieve similar results by downloading our comprehensive case study. Discover the strategies that led to:
- $724,584 annual savings on shipping
- Maintained delivery performance
- Optimized distribution strategy
Don't let rising shipping costs impact your bottom line.
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