Consumer Electronic Manufacturer
Concurrent Optimization of Fulfillment & Transportation

1,100+ Dealer Locations
40 X-Docks
$5B Revenue

Goals

Optimize fulfillment and transportation concurrently

Redesign of the network to reduce the number of stocking locations and total cost of operations

Consideration of daily inventory availability and transportation costs in order fulfillment

Support the rapid growth of the company with scalable technology

Challenges

Fulfillment and transportation planned in silos with no common objective

Weaknesses in the order-to-cash cycle due to the rapid growth of the company

Siloed planning and reactive operations reducing fulfillment performance

Manual operations leading to stock-outs, customer complaints, lost sales, and escalating fulfillment and transportation costs

Benefits

Automated determination of which products went on with which transportation mode, vehicle, route; and constructing a holistic plan to minimize transport costs

Daily generation of three separate plans with different criteria for allocating on-hand and in-transit inventory to current orders

Elimination of manual allocation of inventory, and inaccurate invoices, which increase fulfillment efficiency and reduce the order-to-cash cycle time

Daily fulfillment and transportation plans with 100% acceptance rate

$10M One-time savings after closing 4 DCs

0 %
Annual recurring savings in transportation
$ 0 M
Reduction in inventory investment

Solutions

5/5