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Client :
Global E-commerce Consultants
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Category :
Automation
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date :
May 15, 2024
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location :
Multan, Pakistan
Overview
Given that operational efficiency improved in a span of 6 months, the CEO of Global E-commerce Consultants was impressed by the noticeable results in process optimisation. In December 2022, the company took a step forward in business operations automation in lieu of productivity constraints. The company’s major challenge was inventory management, especially when working with multiple US-based Prep Centers for over 100 e-commerce stores. There was no tracking system for an individual’s performance. The executed plan helped to cut costs, track operations efficiently, and streamline logistics.
Challenges
Unorganized Inventory Management: The lack of a unified inventory tracking system resulted in an inventory of worth over 50k USD spread across multiple US-based prep centers with no knowledge of stock distribution in each of them. This led to stock-level discrepancies, and overall, the books were not ripe. There were dead and listing removal stock in multiple warehouses.
Zero Performance Tracking: Given that the inventory was untrackable, there was no track of who was supervising what. Lack of a dedicated portal to see inventory levels, team performance, individual performance, and data protection. All these missing pieces made it difficult to identify the areas of improvement.
Solutions Implemented
Strategic Placement of 3PL Warehouses:
Implementation: Partnered with Third-Party Logistics (3PL) providers and positioned warehouses across the U.S. to improve inventory management and distribution. I targeted the warehouse that has proper inventory management software to track the real-time check-ins and check-outs.
Outcome: The implemented strategy helped dramatically reduce operational costs by 25% and improve supply chain efficiency. The strategic placement of warehouses was further complimentary to order fulfillments via merchants for 30% of clients’ private label and wholesale store.
Cost-Saving Measures for Amazon Seller Central:
Implementation: Shifted Amazon Seller Central account management to Virtual Private Servers (VPS) to optimize resources and cut overhead costs. I introduced residential proxies to manage the accounts.
Outcome: Lowered account management expenses by 81%, significantly reducing operational costs. The cost savings also streamlined access, eliminating delays caused by VPS loading times, as proxies function like a seamless private browser tab, enhancing efficiency.
Business Operations Automation:
Role: I contributed to the XC project, which aimed to develop a customized system to improve company operations. The project envisioned providing a bird’s-eye-view of all operations.
Actions: I collaborated with stakeholders and teams to define requirements, map workflows, and document technical details, ensuring the system met business needs. It was a bit complicated and a dependent system. I had to make sure that we were covering and linking each of the departments with the context of the issue that we faced during process improvements.
Outcome: The XC system became the company’s main platform, integrating different functions and improving efficiency in operations and logistics. The team and individuals had a relief as the system was generating reports, and now they all had their own dashboards to see things. Plus, it also helps us to secure all the information on the portal, from product data to inventories.
Results
Efficient Inventory Management: Positioning 3PL warehouses strategically helped improve inventory accuracy and reduce lead times, saving costs. Connecting XC with the inventory management portal of our prep centers in the US helped us a lot in tracking the inventory batches and reconciling them.
Proactive Account Management: Using VPS for Amazon Seller Central made processes smoother and significantly cut expenses.
Centralized Operations: The XC system created a single platform for all business activities, improving communication and overall efficiency.
Conclusion
The implementation of automation processes and the development of new systems helped the consultancy overcome operational difficulties with lowered costs in logistics and supply chain. These initiatives not only improved efficiency but also allowed the company to track missing inventories to cook the books right. This case study is a sign that technology and strategic partnerships optimize e-commerce operations.