An e-commerce operation faced significant challenges after relocating its facility across state lines. The move resulted in the loss of critical operational knowledge and processes, leading to:

• A severe inbound receipt backlog of over three months for some brands.
• A six-month backlog in returns processing.
• Underperformance in fill accuracy, pick & pack efficiencies, and cost per order, driving the facility to a near-gridlock state.

iJility developed a targeted strategy to address these challenges through the following steps:

• Task Force Creation: Deployed an iJility Task Force Engagement Team consisting of engineers, operations specialists, and recruiters to stabilize and optimize the operation.
• Facility Remapping and DTS Streamlining: Consolidated the footprint of 65K+ SKUs for six major brands to optimize inventory management and operational flow.
• Returns Management: Relocated returns processing to an offsite facility to clear backlogs and improve processing speed and accuracy.
• Employee Sourcing and Management: Sourced and managed over 150 employees to ensure consistent performance and meet the demands of e-commerce fulfillment.

The iJility team executed the plan effectively, focusing on remapping the facility layout, streamlining DTS processes, and enhancing workforce management to improve overall operational efficiency.

Our strategic approach led to significant improvements for the e-commerce operation:

• Efficiency Gains: Increased picking efficiency by 45.6% and packing efficiency by 46.6%, significantly boosting order fulfillment speed.
• Cost Reductions: Reduced overall fulfillment costs per order by 53.3% and DTS costs per order by 40.6%, enhancing profitability.
• Quality Improvements: Lowered DTS damage rates by 29% and returns processing costs by 36%, improving customer satisfaction and operational effectiveness.

Facing similar challenges in your e-commerce operations? iJility specializes in creating customized solutions that drive efficiency and cost savings. Let’s collaborate to optimize your operations for maximum success.

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