Client - Nutritional Supplements, Direct Sellers

The challenges:
ParcelPorts client owns and manages their own distribution center (DC) on the east coast (not a core competency). Their company sales were growing with a need to expand DC infrastructure and capacity. Shipments to residential consumers were evenly distributed throughout the U.S. and Canada using common carriers (UPS, USPS). But they had unbalanced shipments on a monthly cycle (50% of orders shipped within one week). They also had a fixed cost model. Shipment quality, time and costs did not meet company goals.

ParcelPort Solutions:
- Provided bi-coastal distribution points with one order management system
- Provided scalable infrastructure and capacity
- Provided residential shipments using established common carriers and contracts
- Provided capability for unbalanced monthly shipments with no added costs
- Variable cost model
- Met or exceeded quality, time and cost goals of the client

Results:
- Client reduced DC costs by 20% from fixed cost to variable cost model
- They reduced transportation costs by 30% through bi-coastal distribution
- Client management was allowed to focus on core competencies
- Their business has grown 30% since outsourcing
- They improved cash flow with one monthly consolidated invoice vs. weekly expenses