What Have We Done
How Zulily optimizes its inventory level and organizes for expansion
Find out why leading consumer brands have decided to rely on Shipkoo to handle their most crucial logistics operations.
Costs
Costs
Costs
Who they are.
Challenge
Zulily’s biggest challenge is managing volume fluctuations in inventory that vary between peak season and the off-season. One of the company’s pain points is to keep warehousing costs predictable due to their wide range of product selections and inconsistent incoming orders. Zulily has decided to work with Shipkoo for its expertise in inventory management system.
Solution
With Shipkoo’s fulfillment centers in Shenzhen, China, Zulily has been able to better manage volume fluctuations. The fulfillment center allows Zulily to be close to the manufacturer of its electronic devices, which enables them to get closer to “zero inventory.” Origin fulfillment for Zulily means not having to tie up so much stock traveling on freight between China and the US. Fulfilling from China allows Zulily to react to customer orders quickly, instead of having to hold weeks of inventory at sea or in the US warehouse.
Improvement
Zulily has found that it has reduced warehousing costs by 50%, shipping costs by 40%, and operating costs by over 20%. Shipkoo has enabled Zulily to pursue a low-risk model for inventory management which results in lower inventories and a greater amount of working capital.
Instead of worrying about inventory and fulfillment, Zulily is able to focus on expanding its community and meeting their product needs. Shipkoo is more than just a logistic provider for a company — we are your partner. We are responsive to feedback, and are working hard to build a one-stop platform to make your business easier.
