The fast growing brand in the Outdoors category has raised contribution profits by 63%

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Industry:

Patio, Lawn & Garden

Location:

USA

Company Type:

Brand

Marketplace:

Amazon

Our client has managed to achieve
the following results:

With Nyle.ai, the logistics, supply chain, and inventory management operations have never seen better results. Our client's total sales increased by 38%, average price went up 30% and net margin improved by 4%.

Shipping cost

- 10%

Logistics team
productivity

+ 50%

Storage cost

- 33%

The Challenge

In 2021 our client was overpaying on FBA shipments ($0.22 per lb), and had high storage costs ($0.14 per lb), with occasional Out of Stock events that caused $128k in lost sales and damages of ranking.

Overpaying
on FBA shipments

+$0.10

$0.22 per lb

High storage cost

+$0.07

$0.14 per lb

Lost sales and
ranking damage

+$88K

$128k

The Solution

With Nyle.ai, our client was able to identify the most efficient ways to ship goods using Amazon’s fulfillment network.

They were able to increase their Amazon inventory performance by combining multiple orders into one package for maximum cost effectiveness, predict future demand with high degree of precision, increase pallet utilization by 23%, as well as apply lower LTL rates (by 55% cheaper) through the partner program.

Increase pallet
utilization

+ 23%

LTL rates

- 55%

Our precise demand forecast enabled the client to know when all seasonal products were going to sell out, so the company could order the right amount of products before going Out of Stock.

Nyle.ai has predicted future sales with 95% accuracy for high selling products with long lead time, which has reduced storage costs by 24% with proper signal for reordering new stock.

We were also able to introduce a new method of shipping top selling products from suppliers directly to Amazon warehouse as soon as their Restock Limit was increased. This has allowed Nyle.ai to get additional 18% savings on shipping costs.

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