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"I would say that the most important thing that Lyn does is bring a level of oversight. Oversight to operations that you as the founder wouldn't even think to think of."
Problem Context: Our client came to us as there was a noticeable spike in logistics cost and even with the increase in sales and it being holiday season, the increase in costs was not justifiable/ seemed extreme.
Solution: We came in and audited every logistics invoice over a 3 month period. Results: We found that the 3PL the brand was using was still shipping products via the Express service and never reverted to Standard shipping after the Christmas period as instructed by the brand. To rectify this mistake, the 3PL refunded the difference between all shipments starting from the date the team requested the shipping profile change from Express to Standard. In the end, the total refund came to $29702.11 USD (approximately equivalent to $45,000 AUD)
Problem Context: After scaling the business to a stage with an established market, our client was looking to find efficiencies in their supply chain as the drop shipping rates were really cutting into their margins.
Solution: We recommended to our client to switch from a drop shipping model to a local fulfillment model to reap the benefit from the efficiencies that come with local fulfillment. We coordinated the setup the local warehouses, had all the inventory shipped to each of the warehouses and integrated the warehouse dashboard API into our client’s Shopify store correctly. Results: From launching local fulfillment, our client was able to see the below efficiencies that really impacted their margins. Improved Delivery Times: By transitioning to local shipping, we significantly reduced delivery times, enhancing customer satisfaction and retention.The end customer had more trust in the brand as they were able to get out the product within 24-48 hours. Supplier Independence: Our clients no longer rely on slow suppliers for dropshipping, ensuring more control and efficiency in their supply chain. Because of this, the client no longer had to keep chasing suppliers for updates and manually inputting tracking into their Shopify. Eliminating Refund Hassles: With the product in a local warehouse, we have eliminated the process of refunding customers the customs and duties fee which allows our customer service team to free up their time. Also, as our client is able to dispatch within 24-48 hours and build trust with their end customer, we have seen a reduction in refunds due to slow dispatch times.
Problem Context: Our client was struggling with the rising costs of their COGs due to inflation and was looking at ways to cut costs while maintaining the same product quality. This would mean they wouldn’t have to pass on the rising costs to their customers and were able to keep their competitive pricing.
Solution: We looked at the product and came up with the solution to vacuum seal the product in order to reduce the size which consequently meant we could fit more into a container and bring down the freight cost per unit. Results: We went from a dimension of 53cm x 47cm x 26.5cm (0.066m³) to 49cm x 44c x 15cm (0.032m³). As you can see here, we almost halved the packaging size of the Infrared Sauna Blanket. Packing 1,550 units into a 40HC instead of 1,000 units made a huge difference in freight costs. Fitting 1,000 units into a 40HC resulted in a $20 freight cost per unit compared to when we were able to fit 1,500 units into a 40HC which was $12.90 freight cost per unit. This would equate to a 27% cost efficiency in freight costs or approx $11,000 in freight cost savings. Considering the brand moves more than 10 containers a year, we were able to help them save $100,000 in freight costs.
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