Benchmarking and Optimization of Fulfillment Conditions in E-Commerce

Supply Chain

Optimization of Fulfillment Processes in Online Retail

Fressnapf, a leading European retail company with a significant e-commerce presence, faces the challenge of optimizing its collaboration with a single logistics provider responsible for the fulfillment of its online operations. The project's objective is to sustainably enhance the cost-effectiveness, reliability, and quality of services, thereby improving both efficiency and customer satisfaction.

At the outset, we conduct a detailed analysis of the existing tariffs and conditions to create a benchmark against the current market standard. This involves validating process costs and identifying weaknesses in workflows as well as in the deployed warehouse technologies. This comprehensive gap analysis enables us to pinpoint specific optimization opportunities that deliver both efficiency gains and cost savings.

A central component of the project is the development of recommendations for alternative logistics solutions and an optimally tailored warehouse and picking technology that meets Fressnapf’s current requirements. Our proposals also include innovative approaches to integrating modern technologies to sustainably improve the fulfillment provider’s performance.

A significant challenge lies in negotiating with the logistics service provider, who holds a strong bargaining position due to its oligopoly in the supply chain. To address this challenge effectively, we implement a well-thought-out negotiation strategy based on robust key performance indicators, detailed market analyses, and a clear understanding of business processes. By strategically managing the negotiations, we successfully enhance the supplier's service quality while achieving significant cost reductions.

At the conclusion of the project, Fressnapf benefits from significantly improved terms and enhanced performance from its fulfillment provider, ultimately leading to greater competitiveness and increased customer satisfaction.