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Case Study
10 mins

How 3PL, and Warehousing Transformed Growth for an E-Commerce Brand

What is it, and How Can It Benefit Your Business?

Authored by:
JRFS
Released on
October 29, 2024

Introduction:

For growing e-commerce brands, scaling operations and meeting rising customer demand can be both exciting and challenging. As order volumes increase, logistics become complex, and keeping up with fulfilment demands can overwhelm even the most dedicated in-house teams. This case study highlights how one e-commerce brand chose to partner with a full-service freight management provider, leveraging Third-Party Logistics (3PL) and warehousing to optimise their supply chain, reduce costs, and improve customer satisfaction.

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Background: The Brand’s Growth and Challenges

Our client, EcoTrend, is a fast-growing e-commerce brand specialising in eco-friendly home products. When they first launched, their fulfilment model was simple: a small in-house team managed packaging and dispatch directly from a local warehouse. As demand increased, EcoTrend faced several challenges:

  • Order Volume Surges: Seasonal demand spikes and promotional sales often led to bottlenecks, delaying deliveries and straining the in-house team.
  • Inventory Management Issues: EcoTrend’s expanding product line made inventory tracking increasingly complex, resulting in stockouts and backorders.
  • High Shipping Costs: The in-house fulfilment model lacked the efficiencies of larger-scale logistics, resulting in higher per-unit shipping costs.

After evaluating these challenges, EcoTrend’s team decided it was time to find a scalable logistics solution to handle their growth effectively.

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Solution: Freight Management Services, 3PL, and Warehousing

EcoTrend partnered with JRFS to manage their end-to-end logistics solutions, including 3PL services and warehousing. Here’s how we helped transform EcoTrend’s supply chain:

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Warehousing Solutions for Efficient Inventory Management:

With dedicated warehousing facilities, EcoTrend could store inventory closer to their customers in multiple locations. This multi-warehouse model offered several advantages:

  • Reduced Shipping Times: By storing products closer to key customer locations, EcoTrend could fulfill orders faster, often delivering within 2-3 days.
  • Enhanced Inventory Control: After implementing advanced warehouse management software (WMS) for real-time tracking, EcoTrend could to monitor stock levels, set reorder points, and avoid stockouts more rapidly and with higher visibility than ever before.
  • Optimised Space Utilisation: Instead of paying for an entire warehouse, EcoTrend could lease space based on their needs, resulting in cost savings and flexibility as they continued to grow.

 

3PL Fulfilment Services for a Scalable Solution:

Our 3PL services covered every step of the order fulfilment process, from picking and packing to dispatching and returns management. With these services in place, EcoTrend could scale up during peak seasons without hiring additional staff or investing in more infrastructure. Key benefits included:

  • Improved Order Accuracy: Automated fulfilment processes reduces human error, ensuring that customers received the correct products on time.
  • Flexible Labour Force: EcoTrend could rely on our 3PL’s flexible staffing model, which adapted to seasonal surges and promotional sales, preventing delays during high-demand periods.
  • Returns Management: Another key benefit of 3PL services is handling returns processing, reducing the burden on EcoTrend’s team and maintaining a smooth, customer-friendly returns experience.

 

Freight Management for Streamlined Shipping:

Because we now handled all shipping logistics, including carrier selection, route optimisation, and freight tracking, EcoTrend improved their customer satisfaction and delivery reliability. By centralising freight management, the brand saw:

  • Cost Savings on Shipping: Using our volume discounts and carrier relationships, we can secure competitive shipping rates, reducing EcoTrend’s per-unit shipping costs.
  • Real-Time Tracking and Updates: Customers could track their orders in real time, resulting in improved transparency and trust.
  • Sustainable Shipping Options: Our broad network gives us access to eco-friendly shipping solutions, aligning with EcoTrend’s commitment to sustainability and boosting their brand image among environmentally conscious customers.

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The Impact: Results and Growth

After implementing freight management, 3PL, and warehousing services, EcoTrend achieved several significant improvements:

  • 30% Reduction in Fulfilment Costs: By partnering with a 3PL and centralising freight management, EcoTrend reduced its fulfilment costs by 30%, a savings that they reinvested into product development and marketing.
  • 50% Faster Delivery Times: The multi-warehouse model allowed EcoTrend to fulfil orders faster, improving customer satisfaction and reducing cart abandonment rates.
  • Increased Scalability: With 3PL handling the fulfilment process, EcoTrend could easily scale operations to meet rising demand without additional investments in warehousing or staffing.
  • Customer Satisfaction and Retention: Thanks to faster delivery and real-time order tracking, EcoTrend’s customer satisfaction rates improved, resulting in higher retention and positive reviews.

Why Freight Management, 3PL, and Warehousing Were Right for EcoTrend

For EcoTrend, partnering with a full-service freight management provider offered a way to streamline logistics while freeing up internal resources. Here’s why this solution worked so well:

  • Seamless Integration with Existing Systems: The logistics provider’s systems integrated with EcoTrend’s existing e-commerce platform, ensuring a smooth transition and real-time data sharing.
  • Cost Efficiency and Flexibility: By outsourcing warehousing and fulfilment, EcoTrend kept overheads low while gaining access to advanced logistics capabilities.
  • Customer-Centric Approach: Faster shipping, reliable tracking, and easy returns were game-changers for EcoTrend’s brand reputation, appealing to customers and driving repeat purchases.

Conclusion

For growing e-commerce brands like EcoTrend, logistics and fulfilment can become barriers to scaling effectively. By investing in freight management, 3PL, and warehousing, EcoTrend streamlined its supply chain, improved customer satisfaction, and freed up resources to focus on growth. If your business faces similar challenges, a logistics partner offering comprehensive freight management and 3PL services could be the key to unlocking your next stage of growth.

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Considering freight management services for your brand? Contact JRFS to discover how our end-to-end solutions can simplify your supply chain and drive growth for your business.

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