Innovative Fulfillment Strategy Helps National Food Retailer Scale Its Network to Save $5M

Network Optimization

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$5M+

Overall Savings

99.8%

On-Time Delivery

$5M+

Overall Savings

99.8%

On-Time Delivery

$5M+

Overall Savings

The Challenge

A national food retailer ships up to 10,000 packages daily during peak holiday season vs. a few hundred per week the rest of the year.

["This seasonal increase clogged their preferred air shipping network.", "It elevated spend and risk of delays."]

The Solution

The retailer’s e-commerce team worked with IA to develop a strategy that leverages a network of 13 3PL sites that could be scaled up to meet peak holiday shipping demands.

["This plan modeled alternative shipment allocations for each 3PL, balancing ideal inventory placement with capacity limits.", "This network afforded the retailer options to utilize Ground and 2-day shipping service levels in addition to Next Day Air."]

The Impact

The strategy delivered significant improvements in shipping mix and cost efficiency, as evidenced by $5M in savings with a 99.76% on-time delivery rate. Specific changes include:

["Increasing Ground % volume by 11.3% (75.1% to 86.4%).", "Increasing Ground Zone 2 shipping by 119% year over year.", "Decreasing Next Day Air % volume by 9.6% (17.7% to 8.1%)."]

Network Optimization

Reduce transportation costs, improve lead times, and enhance efficiency by strategically optimizing your distribution centers (DCs) and store locations.

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Smarter Network, Stronger Savings

By leveraging a flexible 3PL network and optimizing shipment allocation, the retailer successfully managed peak-season demand without overwhelming their air shipping network. The shift to more cost-effective Ground shipping improved efficiency, reduced costs, and minimized delays—ensuring a better customer experience during the critical holiday season.

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