A large East Coast based retailer needed a way to quickly and cost effectively deliver packages to their customers in the Western U.S. to stay competitive. The problem? This retailer’s warehouses were primarily located in the Eastern US. Expanding their warehouse network to cover the Western U.S. would involve large capital expenditure and eat into the retailer’s e-commerce margins.
The retailer opted to geographically distribute their inventory by partnering with CommerceHub’s nationwide network of 3PL partners. Thanks to this move, average transit times for customers in the Western U.S. by reduced by 3 days. The retailer started saving approximately $4.40 per package delivered. Not only did their customers receive quicker deliveries, the retailer saved over $2 million in parcel shipping costs!