Whether it’s a top-of-the-line Breville espresso machine, Braun coffee maker, or Baratza grinder, this e-commerce team has the best interests of its customers in mind.
They send out 1,500 to 2,000 packages each day and use the Sifted Logistics Intelligence (LI) platform to analyze shipping data for all its parcel carriers. When they decided to explore new western distribution center locations, they used the Sifted platform to analyze customer destinations and calculate the costs of shipping from different cities.
“We needed solid shipping data and what-if costing scenarios to support our distribution center relocation and real estate decisions,” their director of warehouse operations said. “I was able to get it started, and the experts at Sifted helped refine the model and find the six-figure savings we needed to justify a six-figure distribution center move. It was a fundamental element of our business case and gave us the confidence we needed to move forward.”
Action: Operational Modeling Answers Tough Questions
All of their shipping data automatically flows into the Sifted LI platform through account integrations and real-time exports.
“We knew that shipping from our headquarters, was more expensive than other cities in the western half of the U.S., but we needed the data to precisely quantify it. Sifted is the easiest way I’ve found to organize data and the modeling is awesome. I was able to run my own pricing experiments and narrow down new city options quickly for our leadership team.”
Weights, dimensions, days, and destinations were modeled and analyzed. When they wanted to get an even more granular picture of their shipping data, Sifted consultants stepped in to assist as part of their comprehensive service and support subscription.
“We started with nine potential locations for our new distribution center and Sifted’s advanced analytics pinpointed the three best finalists for our business.”
Outcomes: A Faster, Less Expensive Distribution Model
Salt Lake City was ultimately selected as the location for the new western distribution center, and the move has paid off.
“The analysis from Sifted and the new move of the distribution center was well worth it. We’ve saved more than $130,000 in our first year and cut our transit days at the same time. It’s been good for us and our customers.”
“The analysis from Sifted and the new move of the distribution center was well worth it. We’ve saved more than $130,000 in our first year and cut our transit days at the same time. It’s been good for us and our customers.”
-Director of Warehouse Operations at the eCommerce Coffee Company
The distribution modeling was just the latest example of the high-value impact they’ve received as a Sifted client. They also like that the Sifted platform includes GRI impact modeling and insights to prevent avoidable surcharges.
“Moving our western distribution center was a big strategic decision for us, and the Sifted platform gave us the intelligence we needed to support it and execute it successfully. They provided a 360-degree view of our shipping data that was easy to understand and grounded in analytics we could trust to help us save – and invest – more reliably.”
