A case study in loss
For the first two-and-a-half years of its operations, one question was constant in the minds of its owners:
"How do we do fulfillment well?"
Jerky XP came on board as a client and within the first thirty days, we had delivered the following results to them:
- Jerky XP spent an average of 145 seconds of labor on picking and packing. With our process, we spend 65 seconds.
- Jerky XP was spending an average of 50 seconds per order doing work no customer would pay for: walking around and double-checking. We eliminated all of this.
- Once every 50 orders, Jerky XP made a mistake. Each mistake cost an average of 20 USD. We have an error rate of once every 5,000 orders and we PAY Jerky XP 20 USD when it happens.
- Jerky XP asked us to consult on their shipping methods. They lost about 2.00 USD on the average shipping label. We were able to quickly identify the problem and turn that into a 0.23 USD profit for them.
- Being out of stock is crippling in online retail. Jerky XP spent about 6.4 days every month for 2.5 years in this bad situation. With our inventory management, cycle counting, and reporting; we reduced this to one day every two months.
- The owners of Jerky XP did all of the shipping work for those 2.5 years. When they came on board, all that time was freed up for them to spend any way they wish.