Case Study

Clothing brand gained hidden profits of $262,491 within 7 months

avatar
Karim Saydashev
NOV 3, 2023

Top 20 clothing brand has reduced its shipping costs by 43% with help of Nyle

Industry:
Location:
Company Type:
Marketplace:
Clothing & Shoes Department
USA
Private Label Brand
Amazon USA, Amazon CA

After beginning to work with Nyle, our clients have drastically improved their efficiency by switching their shipment methods from Standard Parcel Delivery (SPD) to Full Truck Load (FTL), resulting in increase of total annual profits by 28%

By using Nyle, our clients achieved the following results:

Logistics team productivity increased by

49%

Storage fees reduced by

47%

Shipping costs decreased by

43%

The Challenge

Overstock storage costs and frequent "Out Of Stock" issues that led to the loss in sales of $142k and damage in rankings.

costs in FBA shipments

$0.3-0.7

per LB

Overstock Storage Costs

$0.63

per LB

Lost Sales and Damage of Ranking

$142k

per LB

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The Solution

Not only we came up with an effective strategy to update the shipping processes to FBA but we also eliminated the "Out of Stock" events, which have occurred during an active product line expansion.

By reduction SPD ratio of shipments (from an average cost of $0.70 to $0.26 per lb) and LTL rates optimizations with the partner program, eliminating of Out Of Stock events and implementing qualitative planning, they were able to achieve massive shipping cost reduction.

Optimization of international shipments

$0.70 $0.26

Per lb

LTL rate optimizations

$0.22 $0.10

Per lb

Since they stopped keeping large amount of stock with low sales velocity, they started to see significant savings on storage fees. As we started to plan well ahead, we were able to stock up for at least two weeks. Now we started to send out FTL shipments (Full Truck Load) every month with at least 4 weeks of coverage.

By packaging their product lines together for maximum cost effectiveness and by using predictive analytics to forecast future demands, they were ableto decrease the number of SPD deliveries from 100 percent to 10 percent and replace them by LTL shipments.

SPD ratio in total shipments

100% 10%
With Nyle AI’s optimization process, the client was ableto significantly improve its Amazon IPI score and boost inventory planning performance by 11%, as well as increase the speed of new shipment and PO creation by 78%.