We helped an online retailer triple its operating profit. To achieve this, we helped introduce new products, renegotiate purchasing conditions, completely rethought shipping and returns, as well as additional new customer channels.
Our client is an online retailer with a focus on the German, Swiss and Austrian markets. After a prolongated period of sustained growth, investors were demanding a consolidation phase – they wanted the company to grow up. Keeping revenues at the same level, the aim was for the company to become more profitable, operate more efficiently, serve customers faster – and earn more from the product.
The entire company loved the great products it offered, but profitability and efficiency sometimes fell short. Orders often didn’t reach customers fast enough, even though the shipping department was working at maximum capacity. A new ERP system was urgently needed, too, for the firm to continue to grow profitably and serve customers adequately.
- Process reorganization with simultaneous introduction of MS Dynamics 365
- Construction of a new Fulfillment Center
- Rethinking the supply chain (and renegotiating with key suppliers)
By implementing a comprehensive package of measures, our client was able to more than triple its operating profit. We renegotiated key supplier contracts and not only increased shipping capacity by more than 250% with new ERP software and a new Fulfillment Center, but also made the capacity seasonally scalable.