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Case Studies

 
Oversize is our Right Size
This client was a retailer of sports and fitness equipment. From treadmills to yoga mats and a few spin bikes thrown in for good measure.

They operated from an expensive but scenically placed warehouse the south coast. Employing two full time warehouse operatives to handle between 20 - 80 orders per day. 

Space is always limited but even more so when 90% of your product is on double pallets with overhang. Standard pallet bays and heights meant that only five cartons on certain SKU's would fit in a rack location. 

Despite the number of orders the operatives wages were constant and due to the weight of the product a two man lift was required at all times.

Collections from carriers were not daily due to the fluctuations in order volumes and the cost of collections and as a result of this they had additional admin time requirements to call customers and book deliveries so they could plan the dispatch accordingly.

All of the above meant that the bottom line was not as buoyant as it could been. Finding a fulfillment partner to handle this size and weight of product is not always easy and requires a degree of socialism to ensure costs do not spiral and space is constantly available for the container influx of Chinese new year.

We offer a full and free audit of current processes and facilities with a view to either offering in house recommendations or, with complete transparency, finding out if there was a fit between Cync and the E-Tailer.

First to evaluate was the handling of the stock. The current operation involved generating a picking list and order dispatch notes with an integrated shipping label. This was all generated in the office. Paperwork was then passed to the operative who would pick the items accordingly. Due to the size and shape of the box this involved a lot of shoving and dragging, undoubtedly resulting in either damage to the carton or at worst, the product. 

Secondly was the pick time. Great times were achieved when both the regular staff were in attendance as they 'just knew' where the stock was, however on one occasion when an agency guy was called in due to sickness, pick times were significantly reduced as the operative had no prior knowledge and spent most of the day walking from one end of the warehouse to the other.

Storage was as expected with racking but due to the standard heights on the pallet racks they were not making the best use of the space available and as such were storing a high number of pallets with a low quantitate of product per pallet.

It was clear a number of sales were being missed by not being able to list with a guaranteed next day delivery date and not only this but one person was employed full time to simply manage the delivery bookings.

Product was in multi box but each box did not hold its own SKU or barcode, as such even if they had the system in place they would never have been able to scan each item out. Equally they had no accurate inventory on a box by box level. 
 
Outcomes
  • By applying mobile picking technology where we brought the label to the product and auto printed it following a successful product scan, picking efficiency improved to the point where two operatives were replaced with just 0.25 of a man on a daily basis.
 
  • Each item was given its own EAN number and in some cases three were generated, one for the overall product and two further for the box by box. This meant each product was scanned in and scanned out. Pick accuracy shot up to 100% no exceptions.
 
  • By storing stock in oversize locations, where by the pallet space is either higher or wider than standard spaces we reduced the storage requirement by over 1/3rd This meant that they reduced their requirement from 15K SQFT of floor space to just 10K SQFT. Getting more product to a pallet reduced their pallet storage counts and as such storage charges.
 
  • Using shared services has enable the client to take advantage of standing trailers for specific oversize carriers such as Panther and DX. They could now advertise same day dispatch on orders up until 7pm. This has had an unquestionable effect on the sales but also on the customer experience and as direct result, feedback scores have improved.
     
  • Admin time required for each delivery has halved. Orders placed on the clients website link directly to a pack and hold feature, releasing them to the warehouse team only when they actually need to be dispatched. Only channel sales now need to be checked, meaning the team now have more time to actually market and sell the product.

In summary, by using shared services our client has reported to us that their costs have reduced significantly and more importantly have all but become variable costs which track the performance of their sales. 

Misspick have been entirely eliminated which has had a direct effect on the bottom line as there has been no requirement for resends and collections. through the input of their account manager and a strong working relationship, returns are manifested daily and stock is salvaged wherever possible.

Great result for the client - Great client for Cync

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