Direct-to-Consumer Fulfillment in the Consumer Electronics Industry

Challenge:

This OHL global consumer electronics customer is recognized as an industry leader, distributing cameras, camcorders, home audio, televisions, computers, major game consoles and software. The company was struggling with fluctuating volumes, space needs, and staffing requirements and decided to turn to OHL.

Approach:

This OHL customer placed high priority on best of class service, security, and space and resource flexibility to meet the peaks and valleys of the electronics business. OHL’s ability to handle changing volumes was critical. OHL’s solution includes warehousing, flexible staffing, consolidated truckloads, enhanced security, SAP integration, packaging, online order fulfillment for direct-to-consumer parcel deliveries and value added services such as assembly of product components.

Value:

OHL provides internet order fulfillment, parcel packaging shipments, packaging and 24/7 onsite security. OHL integrates with the customer’s SAP system and consolidated truckloads speed up the distribution process. OHL continuously refines processes to deliver continuous improvements for the customer.

Return on Investment:

This customer’s direct-to-consumer orders are shipped within 24 hours of order receipt with the industry standard fill rate being 99%. OHL has increased their shipping performance from 70-80% range to +99% range. Consolidated truckloads allow for faster distribution to this customer’s top five clients. OHL, on average, exceeds the small parcel and shipping and receiving contractual KPIs by over 14%. These improvements in speed and flexibility give the on-floor sales staff the confidence to promote the online service at the stores when they are out of a product knowing that orders placed will be shipped within 24 hours.