Our brand partner was facing the dual challenge of managing skyrocketing order volumes while carrier costs continued to eat into their bottom line. The need for improved operational efficiency became urgent. By partnering with GoBolt, they aimed to reduce these costs and optimize their fulfillment network, ultimately bringing inventory closer to their shoppers while streamlining operations across multiple fulfillment centers.
Dive in below to get the full scoop on how we made this happen.
The Brand
In the realm of culinary excellence, precision is paramount. Picture this: succulent steaks sizzling on the grill, roast chicken with a golden, crispy skin, or perfectly seared salmon fillets. Now, imagine achieving these culinary masterpieces with absolute certainty, every single time. Enter our brand partner with an award-winning meat thermometer that revolutionizes cooking by removing the guesswork and elevating precision to an art form.
Behind the scenes of this brand’s rise in popularity lay a set of logistical challenges that threatened to disrupt the seamless experience they promised to their shoppers. As their order volumes surged, our brand partners found themselves grappling with the intricacies of managing inventory placement efficiently while keeping carrier costs in check. They needed a third-party logistics partner who could navigate these complexities with reliability.
The Challenge
As our brand partner experienced exponential growth in demand, they quickly realized that their existing logistics setup was no longer sufficient. With orders pouring in and their reach extending across borders, the challenge of managing order volume growth and inventory placement became paramount. The once manageable task of fulfilling orders from a single site soon transformed into a logistical puzzle, necessitating a strategic approach to scale their operations effectively.
Simultaneously, rising carrier costs posed a significant barrier to sustainable growth. Every shipment sent out came with a price tag that ate into their margins, making it increasingly clear that a proactive approach to reducing these costs was needed. Our brand partner understood that to continue scaling, they needed to optimize their logistics network to decrease transit times and minimize shipping costs.
In talking with the expert team at GoBolt, expanding to multiple fulfillment centers emerged as a strategic next step in this quest for efficiency. By strategically distributing inventory across GoBolt fulfillment centers and closer to their shoppers, our brand partner was able to slash shipping costs and expedite delivery times.
This expansion presented its own set of logistical hurdles, from coordinating inventory management across disparate locations to ensuring seamless order fulfillment processes. In the face of these challenges, our brand partner knew that GoBolt could be trusted to help navigate the complexities.
The Solution
Distributed Inventory
Our brand partner began leveraging our comprehensive suite of services and extensive network to seamlessly transition from operating out of a single site to establishing a presence across 5 locations. This strategic expansion not only provided our brand partner with the scalability they needed to meet growing demand but also exemplified the flexibility of partnering with GoBolt. By consolidating their logistics, they avoided the complexities associated with managing multiple 3PLs in different cities, streamlining their operations, and facilitating expansion into new markets.
Shipping Optimization
Central to this expansion strategy was the implementation of distributed inventory management, a game-changing solution that empowered our brand partner to forward-place SKUs closer to their shoppers. By strategically positioning inventory in proximity to their customer base, our brand partner achieved a dual victory: significant reductions in shipping costs and transit times, coupled with a substantial decrease in scope three emissions. This not only translated to tangible cost savings but also enhanced the sustainability of their supply chain, aligning with their commitment to environmental stewardship and social responsibility.
Reduced Carrier Costs
GoBolt’s expertise in crafting cost-effective shipping solutions proved instrumental in driving down carrier costs by an impressive 34 percent. Through analysis and negotiation, we identified opportunities to optimize shipping routes, minimize unnecessary expenses, and negotiate favorable rates with carriers. From implementing efficient parcel consolidation strategies to leveraging our network’s economies of scale, we worked hand-in-hand with our brand partner to unlock substantial savings while maintaining the integrity and reliability of their shipping operations.
The Results
The tangible outcomes of our collaborative efforts speak volumes. Over the course of just one year, from 2022 to 2023, our brand partner experienced an astounding 261% increase in order volume. Zooming out further, from 2021 to 2023, they witnessed a surge of 530%. These staggering numbers underscore the exponential trajectory of our brand partner’s success.
Central to this growth story is the successful expansion to multiple sites, strategically positioned in key markets to maximize efficiency and enhance customer reach. After initially launching fulfillment out of Toronto, their expansion journey continued with the launch of Vancouver in 2022. Building upon this momentum, 2023 witnessed the rollout of additional sites in Houston, Los Angeles, and New York City. Each expansion marked a strategic milestone in our brand partner’s journey, further solidifying their presence in diverse geographical regions and facilitating seamless order fulfillment for shoppers nationwide.
Perhaps most compelling of all is the notable decrease in carrier costs achieved through our partnership, amounting to an impressive 34 percent reduction. These substantial savings not only bolstered our brand partner’s bottom line but also underscored the efficacy of our cost-effective shipping solutions in driving tangible financial benefits.
Final Thoughts
Key Takeaways and Benefits
In looking back on the collaborative journey between our brand partner and GoBolt, several key takeaways emerge, highlighting the transformative impact of our partnership on their growth and efficiency:
- Strategic Expansion: The establishment of multiple fulfillment centers and the adoption of distributed inventory management facilitated our brand partner’s ability to decrease shipping costs and transit times, driving increased checkout conversions and shopper satisfaction.
- Cost Savings: Through the implementation of cost-effective shipping solutions and strategic negotiation with carriers, our brand partner realized significant reductions in carrier costs.
- Operational Efficiency: Streamlined order fulfillment processes and optimized shipping routes contributed to enhanced operational efficiency, enabling our brand partner to meet growing demand while maintaining high standards of service excellence.
Next Steps
Our brand partner remains committed to enhancing their logistics capabilities and driving continued growth. Some of their next steps with GoBolt include:
Leveraging Canadian Fulfillment: Capitalizing on Section 321 benefits by leveraging fulfillment services from Canada, thereby further optimizing shipping costs and transit times for North American shoppers.
GoBolt Parcel: Exploring the addition of GoBolt Parcel as a preferred carrier to further reduce emissions, costs, and transit times.
Returns Management: Adding the management of Amazon and direct customer returns processing through Two Boxes, ensuring seamless operations and shopper satisfaction.
Ready to optimize your fulfillment and shipping experience? Contact our team at GoBolt today to explore how our comprehensive logistics solutions can drive growth, efficiency, and customer satisfaction.
