32 Degrees is an apparel company whose clothes offer maximum comfort at a valued price. The company sold only through retail channels until 2017, when it launched 32degrees.com. Since then, online sales have exploded. But early on, that growth was painful.
“We initially used our B2B fulfillment warehouse to handle B2C orders, but quickly realized that they could not handle the added complexity of direct-to-consumer fulfillment,” says Charles Lunden, Vice President of Planning and Operations for 32 Degrees.
“With Staci Americas, we have confidence that we can scale fulfillment to meet any growth trajectory."
That triggered a search for a B2C fulfillment company that could handle a high volume of very complex orders. 32 Degrees now averages 45,000 orders per month, and that number is steadily rising. SKUs number anywhere from 1000–2,000, depending on the season, and the order profile requires a more complicated pick process, with about 5 different SKUs per order.
“Staci Americas showed us a high-volume picking operation at its New Jersey fulfillment center that used voice pick technology,” says Lunden. “When we saw that, we knew we had the solution we needed.”
About 32 Degrees
32 Degrees is an apparel company whose clothes offer maximum comfort at a valued price. The company sold only through retail channels until 2017, when it launched 32degrees.com.
Key To Success
SCALABILITY
With the new voice pick system in full operation, 32 Degrees shipped more B2C orders on July 4th than it did on the previous Cyber Monday. Fulfillment is no longer a barrier to growth.
ADAPTING BASED ON SKU-SPECIFIC FORECASTS
With the new voice pick system in full operation, 32 Degrees shipped more B2C orders on July 4th than it did on the previous Cyber Monday. Fulfillment is no longer a barrier to growth.
PARCEL SAVINGS
A change from USPS to FedEx SmartPost using Staci Americas' lower rates yielded substantial parcel savings.
CLOSE COMMUNICATION
The relationship is highly collaborative. “Staci Americas acts on the information we provide – not all 3PLs do,” says Lunden. And 32 Degrees will change its processes in response to an Staci Americas request. For instance, 32 Degrees worked with its overseas vendors to group like SKUs together when loading containers. This significantly reduced unload and sort times at the warehouse.
Keys To Success
SKU-SPECIFIC FORECASTS
With the new voice pick system in full operation, 32 Degrees shipped more B2C orders on July 4th than it did on the previous Cyber Monday. Fulfillment is no longer a barrier to growth.
SCALABILITY
With the new voice pick system in full operation, 32 Degrees shipped more B2C orders on July 4th than it did on the previous Cyber Monday. Fulfillment is no longer a barrier to growth.
CLOSE COMMUNICATION
The relationship is highly collaborative. “Staci Americas acts on the information we provide – not all 3PLs do,” says Lunden. And 32 Degrees will change its processes in response to an Staci Americas request. For instance, 32 Degrees worked with its overseas vendors to group like SKUs together when loading containers. This significantly reduced unload and sort times at the warehouse.
PARCEL SAVINGS
A change from USPS to FedEx SmartPost using Staci Americas' lower rates yielded substantial parcel savings.
Results
Improved Scale and Quality
In the last 6 months, order volume has increased 150% with improved operational performance.
Improved Order Accuracy
Improved order accuracy from 90%-95% with the former provider to nearly 100% with Staci Americas.
Saved Parcel Shipping Costs
Saved 50% on parcel shipping costs after the initial shift to Staci Americas' parcel management program.
According to Lunden, “Our job in fulfillment is to support sales. The new solution with Staci Americas can handle a high volume of very complex orders accurately and efficiently. As a result, we now have confidence that we can scale our fulfillment operation to meet any growth trajectory.”
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